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Sunflower Production Contracts: Provisions and Analysis

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  • Cobia, David W.

Abstract

Provisions of sunflower production contracts in North Dakota and Minnesota are summarized in this report. A procedure which can be used to compare the economic value of contracts is also presented. Extensive commercial production of sunflowers is relatively recent. Contracts provide growers with an assured market, guaranteed price, and assistance in proper growing practices. Processors and marketing agencies can better control quality and supply through contracts. The proportion of sunflower growers under contract has been declining as farmers become more familiar with the crop, because of expanding market outlets, and because several contractors wish to avoid costs of contracting. Sunflowers are contracted directly with contractors or through their agent country elevators. Contracts generally specify acreage, price, quality, delivery, and payment provisions. Provisions of 17 contracts are summarized and a method of selecting the most profitable contract is explained.

Suggested Citation

  • Cobia, David W., 1975. "Sunflower Production Contracts: Provisions and Analysis," Agricultural Economics Reports 23245, North Dakota State University, Department of Agribusiness and Applied Economics.
  • Handle: RePEc:ags:nddaer:23245
    DOI: 10.22004/ag.econ.23245
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    File URL: https://ageconsearch.umn.edu/record/23245/files/aer104.pdf
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    Cited by:

    1. Parker, Paul E. & Niernberger, Floyd F., 1980. "Oil Content Analysis of Sunflower by Nuclear Magnetic Resonance, Solvent Extraction, and Near-Infrared Reflectance: A Cost Study," Marketing Research Reports 313787, United States Department of Agriculture, Agricultural Marketing Service, Transportation and Marketing Program.

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    Keywords

    Marketing; Production Economics;

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