Advanced Search
MyIDEAS: Login

Economic consequences of collaborative arrangements in the agricultural firm


Author Info

  • Larsén, Karin
Registered author(s):


    This thesis consists of five papers that analyse various aspects of contracts in agriculture. Four papers concern collaborative arrangements between farmers. Different types of gains from partnerships are analysed, such as gains from risk-sharing and diversification, biological effects, cost savings on machinery and labour and improved farm efficiency. Also a potential cost of partnerships – the risk of opportunistic behaviour among partners – is analysed. The objective of the first paper is to analyse if there are incentives for a partnership between a specialised piglet and fattening pig producer (vertical co-ordinated integration). Using data for average Swedish pig producers, it is shown that improved production results in vertically coordinated production as well as risk reduction create incentives for specialised piglet and fattening pig producers to collaborate. The second paper analyses the incentives for collaboration between a crop and a dairy farm by applying a model of a share contract. This study uses data from two pair of case farms representing crop and dairy farms of various sizes. The results suggest that gains from risk sharing, diversification, improved crop rotation and machinery- and labour-sharing can be substantial in a partnership. Paper IV analyses farmers' decision to engage in partnership arrangements, involving machinery- and labour-sharing with other farmers. A theoretical framework is used to illustrate that any incentive to act opportunistically is deterred by presence of social norms. The empirical analysis, based on a questionnaire to Swedish farmers in combination with FADN-variables, suggests that moral hazard problems are perceived to be relatively limited in existing partnerships, which are characterized by a considerable a degree of trust and good social relations. In the last paper, the impact of machinery- and labour-sharing arrangements on farm efficiency is analysed using the same data sources as in Paper IV. The results suggest that average efficiency is greater among the partnership farms, compared with the non-partnership farms. Moreover, partnership farms with the most extensive collaboration, i.e. that share all machinery, display the highest average efficiency scores. One paper deals with farmers' participation in agri-environmental payment programs. In that study, farmers' decision to participate in agri-environmental payment programs is analysed, as well as the impact of program participation on economic performance. It is found that larger farms are more likely to be program participants and that program participation has a positive impact on farm performance (profitability). Methodological approaches used in the thesis include mathematical programming considering risk, Data Envelopment Analysis and econometrics.

    Download Info

    If 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.
    File URL:
    Download Restriction: no

    Bibliographic Info

    Paper provided by Swedish University of Agricultural Sciences, Department of Economics in its series Department of Economics publications with number 1740.

    as in new window
    Date of creation: 2008
    Date of revision:
    Handle: RePEc:sua:ekonwp:1740

    Contact details of provider:
    Postal: Box 7013, 750 07 UPPSALA
    Phone: 018-67 1724
    Fax: 018-67 3502
    Web page:
    More information through EDIRC

    Related research



    No references listed on IDEAS
    You can help add them by filling out this form.



    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:sua:ekonwp:1740. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Alejandro Engelmann).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.