Exploring the Potential Effects of Organic Production on Contracting in American Agribusiness
Organic production, while still a niche market in U.S. agriculture, is growing at a rapid rate. This paper argues that organic producers, particularly those seeking certification to sell at the retail level, share many characteristics with conventional producers who opt for contracting over independence. These include yield risk, search and transaction costs, and technological changes. Depending on the rate at which federal assistance programs grow and evolve to serve organic producers, contracting may become a popular choice within the organic sector. In turn, contracting may come to cover a significantly larger share of agricultural production as the organic sector continues to grow.
|Date of creation:||2006|
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- Van der Sluis, Evert & Diersen, Matthew A. & Dobbs, Thomas L., 2002. "Agricultural Biotechnology: Farm-Level, Market, And Policy Considerations," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(1).
- Roberts Michael J & Key Nigel, 2005. "Losing Under Contract: Transaction-Cost Externalities and Spot Market Disintegration," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 3(2), pages 1-19, April.
- Martin, Laura L., 1997. "Production Contracts, Risk Shifting, and Relative Performance Payments in the Pork Industry," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 29(02), pages 267-278, December.
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