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Forward Contracting Of Inputs: A Farm-Level Analysis

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  • Perry, Janet E.
  • Mishra, Ashok K.

Abstract

Forward contracting of inputs in production agriculture is becoming increasingly important as more farmers attempt to manage risk. Using a logit model and farm-level data, this analysis estimates the effect of factors on the probability of a producer using forward input contracting. Results suggest that use of contracting in selling of crops and livestock, technology, farm size, geographic location, participation in government commodity programs, and use of extension services are important factors affecting the choice to forward contract inputs.

Suggested Citation

  • Perry, Janet E. & Mishra, Ashok K., 1999. "Forward Contracting Of Inputs: A Farm-Level Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2).
  • Handle: RePEc:ags:jloagb:14729
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    File URL: http://purl.umn.edu/14729
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(01), February.
    2. Riley, John Michael & Anderson, John D., 2009. "Producer Perceptions of Corn, Soybean and Cotton Price Risk," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46865, Southern Agricultural Economics Association.
    3. Jeffrey Gillespie & Richard Nehring & Isaac Sitienei, 2014. "The adoption of technologies, management practices, and production systems in U.S. milk production," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-24, December.
    4. Mishra, Ashok K. & Williams, Robert P., 2006. "Internet Access and Use by Farm Households," 2006 Annual meeting, July 23-26, Long Beach, CA 21106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    5. Mofokeng, Maine & Vink, Nick, 2013. "Factors Affecting the Hedging Decision of Maize Farmers in Gauteng Province," 2013 AAAE Fourth International Conference, September 22-25, 2013, Hammamet, Tunisia 161465, African Association of Agricultural Economists (AAAE).
    6. repec:spr:agfoec:v:2:y:2014:i:1:p:1-24 is not listed on IDEAS
    7. Ueckermann, E.M. & Blignaut, J.N. & Gupta, Rangan & Raubenheimer, J., 2008. "Modelling South African grain farmers’ preferences to adopt derivative contracts using discrete choice models," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), June.
    8. Todd H. Kuethe & Mitch Morehart, 2012. "The profit impacts of risk management tool adoption," Agricultural Finance Review, Emerald Group Publishing, vol. 72(1), pages 104-116, May.
    9. Mishra, Ashok K. & Park, Timothy A., 2005. "An Empirical Analysis of Internet Use by U.S. Farmers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(02), pages 253-264, October.
    10. Riley, John Michael & Anderson, John D., 2009. "Comparison of Hedging Cost with Other Variable Input Costs," 2009 Conference, April 20-21, 2009, St. Louis, Missouri 53045, NCCC-134 Conference on Applied Commodity Price Analysis, Forecasting, and Market Risk Management.

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    Keywords

    forward contracting; inputs; risk; Marketing;

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