Production Contracts, Risk Shifting, And Relative Performance Payments In The Pork Industry
Actual performance records of production contract farmers are used to assess the extent to which contract production reduces the risk borne by pork producers. Comparisons of contracting relative to independent market production reveal that farmers who enter into production contracts based on absolute performance measures reduce risks associated with variable income. Weak evidence is found that relative performance contracts, similar to those used in the broiler chicken industry, further reduce income variability. The effectiveness of such relative performance contracts will rely on several factors; among these are increased contract production and a more uniform pork production and processing system.
Volume (Year): 29 (1997)
Issue (Month): 02 (December)
|Contact details of provider:|| Web page: http://www.saea.org/jaae/jaae.htm|
More information through EDIRC
References listed on IDEAS
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.:
- Johnson, C. Scott & Foster, Kenneth A., 1994.
"Risk Preferences And Contracting In The U.S. Hog Industry,"
Journal of Agricultural and Applied Economics,
Southern Agricultural Economics Association, vol. 26(02), December.
- Scott Johnson, C. & Foster, Kenneth A., 1994. "Risk Preferences and Contracting In the U.S. Hog Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(02), pages 393-405, December.
- Kliebenstein, James, 1992. "Evaluation of Pork Production Contracts," ISU General Staff Papers 199207010700001241, Iowa State University, Department of Economics. Full references (including those not matched with items on IDEAS)