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The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France

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  • Ricome, Aymeric
  • Chaib, Karim
  • Ridier, Aude
  • Kephaliacos, Charilaos
  • Carpy-Goulard, Francoise

Abstract

This paper analyzes the link between choices of production technologies and marketing contracts. We first develop an analytical model showing that both decisions are linked and influenced by risk and direct payments. Then, a numerical application based on a stochastic farm model is implemented on a representative farm from southwestern France. Among other things, we find that a wide availability of marketing contracts reduces the impact of agricultural policies on agricultural practices. Moreover, marketing contracts can encourage farmers to adopt green practices, which are—in France—riskier than conventional techniques.

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  • Ricome, Aymeric & Chaib, Karim & Ridier, Aude & Kephaliacos, Charilaos & Carpy-Goulard, Francoise, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-29.
    • Handle: RePEc:ags:jlaare:245875
    DOI: 10.22004/ag.econ.245875
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    Cited by:

    1. Stefano Ciliberti & Marcello Stanco & Angelo Frascarelli & Giuseppe Marotta & Gaetano Martino & Concetta Nazzaro, 2022. "Sustainability Strategies and Contractual Arrangements in the Italian Pasta Supply Chain: An Analysis under the Neo Institutional Economics Lens," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    2. Aude Ridier & Caroline Roussy & Karim Chaib, 2021. "Adoption of crop diversification by specialized grain farmers in south-western France: evidence from a choice-modelling experiment," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(3), pages 265-283, September.
    3. He Yiming & Luo Biliang & Zou Baoling, 2018. "Do Heterogeneous Agricultural Factors Affect Farmland Contractual Choice?—Evidence from China," Man and the Economy, De Gruyter, vol. 5(1), pages 1-12, June.
    4. Aymeric Ricome & Arnaud Reynaud, 2022. "Marketing contract choices in agriculture: The role of price expectation and price risk management," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 170-186, January.
    5. Weituschat, Chiara Sophia & Pascucci, Stefano & Materia, Valentina Cristiana & Caracciolo, Francesco, 2023. "Can contract farming support sustainable intensification in agri-food value chains?," Ecological Economics, Elsevier, vol. 211(C).

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