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Effect of Contract Farming on the Farmers' Average Return - The Case of the Grain Industry in the U.S.A

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  • Hu, Wu-Yueh

Abstract

In the literature, the effect of contract farming on the productivity efficiency or profitability is rarely studied, especially in the crop sector. In this paper, we use a farm-level dataset (Agriculture and Resource Management Survey) to examine the effect of contract farming on the farmers' average return for the corn, soybean and wheat producers. The results of the matching estimation show that without matching, the effect of contract farming on the average returns of the corn and soybean producers might be underestimated, and contract farming might have a negligible (statistically insignificant) effect on the average return of the wheat producer.

Suggested Citation

  • Hu, Wu-Yueh, 2012. "Effect of Contract Farming on the Farmers' Average Return - The Case of the Grain Industry in the U.S.A," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124659, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea12:124659
    DOI: 10.22004/ag.econ.124659
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    Cited by:

    1. Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    2. Kumar, Anjani & Roy, Devesh & Trapathi, Gaurav & Joshi, Pramod Kumar & Adhikari, Rajendra Prasad, 2016. "Can contract farming increase farmers’ income and enhance adoption of food safety practices?: Evidence from remote areas of Nepal:," IFPRI discussion papers 1524, International Food Policy Research Institute (IFPRI).
    3. Kumar, Anjani & Roy, Devesh & Joshi, Pramod K. & Tripathi, Gaurav & Adhikari, Rajendra P., 2016. "Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal: An Evidence from Lentil Cultivation," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235848, Agricultural and Applied Economics Association.
    4. Barrowclough, Michael & Boys, Kathryn A. & Carpio, Carlos, 2015. "An Evaluation of Firm and Contract Characteristics Valued by Supply Chain Partners in Specialty Crop Marketing Channels," 2015 AAEA & WAEA Joint Annual Meeting, July 26-28, San Francisco, California 205768, Agricultural and Applied Economics Association.
    5. Demko, Iryna & Plakias, Zoe & Katchova, Ani, "undated". "How do farmers compose their portfolio of local food marketing channels?," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 259931, Agricultural and Applied Economics Association.
    6. Li, X. & Guo, H. & Li, L., 2018. "Do Product Attributes affect Farmer's Contract Farming Participation? Evidence from Vegetable Production in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277154, International Association of Agricultural Economists.
    7. Anjani Kumar & Devesh Roy & Gaurav Tripathi, 2016. "Contracting by Small Farmers in Commodities with Export Potential: Assessing Farm Profits of Lentil Growers in Nepal," Working Papers id:10899, eSocialSciences.

    More about this item

    Keywords

    Agricultural Finance; Crop Production/Industries;

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