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Agricultural Contracting Update: Contracts in 2003

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  • MacDonald, James M.
  • Korb, Penelope J.
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    Abstract

    Marketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2003, up from 36 percent in 2001 and a substantial increase over estimated values of 28 percent for 1991 and 11 percent in 1969. Large farms are far more likely to contract than small farms; in fact, contracts cover over half of the value of production from farms with at least $1 million in sales. Although use of both production and marketing contracts has grown over time, growth is more rapid for production contracts, which are largely used for livestock.

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    Bibliographic Info

    Paper provided by United States Department of Agriculture, Economic Research Service in its series Economic Information Bulletin with number 33903.

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    Date of creation: 2006
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    Handle: RePEc:ags:uersib:33903

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    Related research

    Keywords: contracts; contracting; marketing contracts; production contracts; vertical integration; vertical coordination; market structure; risk analysis; price signals; Industrial Organization; Marketing;

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    Cited by:
    1. Michael Stahlman & Laura McCann, 2012. "Technology characteristics, choice architecture, and farmer knowledge: the case of phytase," Agriculture and Human Values, Springer, vol. 29(3), pages 371-379, September.
    2. Katchova, Ani L., 2010. "Agricultural Contracts and Alternative Marketing Options: A Matching Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 42(02), May.
    3. Jaenicke, Edward C. & Shields, Martin & Kelsey, Timothy W., 2007. "Food Processors’ Use of Contracts to Purchase Agricultural Inputs: Evidence from a Pennsylvania Survey," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 36(2), October.
    4. Ronald Rich, 2008. "Fecal free: Biology and authority in industrialized Midwestern pork production," Agriculture and Human Values, Springer, vol. 25(1), pages 79-93, January.
    5. Yu, Xiaohua & Abler, David G. & Peng, Chao, 2008. "Dancing with the Dragon Heads: Enforcement, Innovations and Efficiency of Contracts between Agricultural Processors and Farmers in China," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6144, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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