Agricultural Contracting Update: Contracts in 2008
AbstractMarketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2008, up from 36 percent in 2001, and a substantial increase over 28 percent in 1991 and 11 percent in 1969. However, aggregate contract use has stabilized in recent years and no longer suggests a strong trend. Contracts between farmers and their buyers are reached prior to harvest (or before the completion stage for livestock)and govern the terms under which products are transferred from the farm. Contracts are far more likely to be used on large farms than on small farms, and they form one element in a package of risk management tools available to farmers. Production contracts are used widely in livestock production, while marketing contracts are important to the production of many crops.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by United States Department of Agriculture, Economic Research Service in its series Economic Information Bulletin with number 101279.
Date of creation: Feb 2011
Date of revision:
Contact details of provider:
Postal: 1400 Independence Ave.,SW, Mail Stop 1800, Washington, DC 20250-1800
Web page: http://www.ers.usda.gov/
More information through EDIRC
Production contracts; marketing contracts; farm structure; farm size; farm income; contracting; Agricultural Resource Management Survey; ARMS; risk analysis; Agribusiness; Farm Management; Livestock Production/Industries; Risk and Uncertainty;
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Harwood, Joy L. & Heifner, Richard G. & Coble, Keith H. & Perry, Janet E. & Somwaru, Agapi, 1999. "Managing Risk in Farming: Concepts, Research, and Analysis," Agricultural Economics Reports 34081, United States Department of Agriculture, Economic Research Service.
- Key, Nigel, 2013.
"Production Contracts and Farm Business Growth and Survival,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 45(02), May.
- Key, Nigel D., 2010. "Production Contracts and Farm Business Growth and Survival," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61022, Agricultural and Applied Economics Association.
- Shawn Cole & Barrett Kirwan, 2009. "Between the Corporation and the Household: Commodity Prices, Risk Management, and Agricultural Production in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 91(5), pages 1243-1249.
- Dimitri, Carolyn, 2002. "Contract Evolution And Institutional Innovation: Marketing Pacific-Grown Apples From 1890 To 1930," The Journal of Economic History, Cambridge University Press, vol. 62(01), pages 189-212, March.
- Sandeep Mohapatra & Rachael E. Goodhue & Colin A. Carter & James A. Chalfant, 2010. "Effects of Forward Sales on Spot Markets: Pre-commitment Sales and Prices for Fresh Strawberries," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 152-163.
- MacDonald, James M. & McBride, William D., 2009. "The Transformation of U.S. Livestock Agriculture: Scale, Efficiency, and Risks," Economic Information Bulletin 58311, United States Department of Agriculture, Economic Research Service.
- Key, Nigel D., 2004. "Agricultural Contracting and the Scale of Production," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 33(2), October.
- Rachael E. Goodhue & Dale M. Heien & Hyunok Lee & Daniel A. Sumner, 2003.
"Contracts and Quality in the California Winegrape Industry,"
Review of Industrial Organization,
Springer, vol. 23(3_4), pages 267-282, December.
- Rachael Goodhue & Dale Heien & Hyunok Lee & Daniel Sumner, 2003. "Contracts and Quality in the California Winegrape Industry," Review of Industrial Organization, Springer, vol. 23(3), pages 267-282, December.
- Sporleder, Thomas L. & Boland, Michael A., 2011. "Exclusivity of Agrifood Supply Chains: Seven Fundamental Economic Characteristics," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IAMA), vol. 14(5).
- Okwo, Adaora & Thomas, Valerie M., 2014. "Biomass feedstock contracts: Role of land quality and yield variability in near term feasibility," Energy Economics, Elsevier, vol. 42(C), pages 67-80.
- MacDonald, James M., 2011. "Why Are Farms Getting Larger? The Case Of The U.S," 51st Annual Conference, Halle, Germany, September 28-30, 2011 115361, German Association of Agricultural Economists (GEWISOLA).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.