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Hog Producer Preferences for Marketing Contract Attributes

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  • Brian Roe
  • Thomas L. Sporleder
  • Betsy Belleville

Abstract

We use a stated preference instrument to elicit producer preferences for the attributes of risk‐shifting hog marketing contracts and express acceptable producer trade‐offs between contract attributes in a convenient dollar metric. Respondents value an increase in a window contract's price ceiling three to five times more than the same increase in the price floor, which suggests that hog producers dislike contracts that limit up‐side price potential (limit positive skewness). The contractor's organizational form is also important. Cooperative forms are preferred by many respondents, particularly those who state that trust in the contractor is an important antecedent for any contractual relationship.

Suggested Citation

  • Brian Roe & Thomas L. Sporleder & Betsy Belleville, 2004. "Hog Producer Preferences for Marketing Contract Attributes," American Journal of Agricultural Economics, John Wiley & Sons, vol. 86(1), pages 115-123, February.
    • Handle: RePEc:wly:ajagec:v:86:y:2004:i:1:p:115-123
    DOI: 10.1111/j.1467-8276.2004.tb18460.x
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