Unpacking Agrarian and Agri-business Contracts
Analysis of contracts and contractual relations are among the most topical issues in modern management theories and practices. This paper incorporates the interdisciplinary New Institutional and Transaction Costs Economics (combining Economics, Organization, Law, Sociology, Behavioral and Political Sciences) and suggests a holistic framework for analysis of contracts in farming and agri-business sector. First, it specifies type and importance of different mechanisms of governance of agrarian and agri-business activity. Second, it defines the essence, and classifies types and features of agrarian and agri-business contracts. Next, it identifies technological, institutional, behavioral, dimensional, and transaction costs factors for contractual choice, and specifies effective modes for contractual arrangements in agriculture and agri-business. Finally, it determines the effective boundaries and sustainability of farming and agri-business organizations.
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