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Producer perceptions and attitudes toward hog marketing contracts

  • Chris Boessen

    (Department of Agricultural Economics, University of Missouri, Columbia, MO 65211)

  • Joe Parcell

    (Department of Agricultural Economics, University of Missouri, Columbia, MO 65211)

  • Jason Franken

    (Department of Agricultural Economics, University of Missouri, Columbia, MO 65211)

  • John Lawrence

    (Department of Economics, Iowa State University, Ames, IO 50011)

  • Ron Plain

    (Department of Agricultural Economics, University of Missouri, Columbia, MO 65211)

  • Glenn Grimes

    (Department of Agricultural Economics, University of Missouri, Columbia, MO 65211)

Registered author(s):

    The objective of this research is to use survey respondent perceptions and demographic data to assess factors affecting producer's attitudes towards hog marketing contracts. Six statements related to marketing contracts were presented to subjects to measure their attitudes toward the dominant method used by packers to procure hogs. The results suggest that the profitability of the producer, marketing method employed by the producer and the number of packers to whom the producer sold hogs significantly influences attitudes towards marketing contracts. These results suggest that low-cost producers who market hogs via individual or group marketing contracts are more positive, or in some cases less negative, in their attitudes towards marketing contracts. Although prior nonparametric analyses provide some insight into factors influencing producers' views of marketing contracts, this analyses allows inference of statistical significance. [EconLit citations: D400, L100]. © 2010 Wiley Periodicals, Inc.

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    File URL: http://hdl.handle.net/10.1002/agr.20229
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    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 26 (2010)
    Issue (Month): 3 ()
    Pages: 405-424

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    Handle: RePEc:wly:agribz:v:26:y:2010:i:3:p:405-424
    Contact details of provider: Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. Gillespie, Jeffrey M. & Eidman, Vernon R., 1998. "The Effect Of Risk And Autonomy On Independent Hog Producers' Contracting Decisions," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 30(01), July.
    2. Nelson, Robert G. & Turner, Steven C., 1995. "Experimental Examination Of A Thin Market: Price Behavior In A Declining Terminal Market Revisited," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 27(01), July.
    3. Gray, Roger W., 1960. "The Characteristic Bias in Some Thin Futures Markets," Food Research Institute Studies, Stanford University, Food Research Institute, issue 03.
    4. Christopher G. Davis & Jeffrey M. Gillespie, 2007. "Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 331-348.
    5. Franken, Jason R.V. & Pennings, Joost M.E. & Garcia, Philip, 2009. "Do Transaction Costs and Risk Preferences Influence Marketing Arrangements in the Illinois Hog Industry?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(2), August.
    6. Nigel Key & William McBride, 2003. "Production Contracts and Productivity in the U.S. Hog Sector," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(1), pages 121-133.
    7. Brian Roe & Thomas L. Sporleder & Betsy Belleville, 2004. "Hog Producer Preferences for Marketing Contract Attributes," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 115-123.
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