IDEAS home Printed from https://ideas.repec.org/p/ags/hebarc/18526.html

Observations On Cooperative Bargaining In U.S. Agricultural Markets

Author

Listed:
  • Hueth, Brent
  • Marcoul, Philippe

Abstract

This paper identifies market and commodity characteristics that seem to support successful cooperative bargaining in markets for farm output. Bargaining is not just about increasing prices paid to farmers; indeed, although there is very little empirical research that addresses the issue, what evidence does exist suggests that cooperative bargaining has very little direct influence on price. Nevertheless, the price negotiation process may be useful in itself as a form of price discovery in markets where there is uncertainty about market supply and demand conditions, and bargaining associations can play an important role in ensuring contract reliability. These and other benefits must be weighed against the organizational and ongoing operational costs of a formal bargaining association when considering whether bargaining is appropriate for a given market environment. Even when the aggregate net benefits associated with bargaining are positive, the distribution of benefits across the various market participants may have an important influence on the political feasibility of bargaining.

Suggested Citation

  • Hueth, Brent & Marcoul, Philippe, 2002. "Observations On Cooperative Bargaining In U.S. Agricultural Markets," Hebrew University of Jerusalem Archive 18526, Hebrew University of Jerusalem.
    • Handle: RePEc:ags:hebarc:18526
    DOI: 10.22004/ag.econ.18526
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/18526/files/wp020316.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.18526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Marcus, Gerald D. & Frederick, Donald A., 1994. "FARM BARGAINING COOPERATIVES: Group Action, Greater Gain," Research Reports 279983, United States Department of Agriculture, Rural Development.
    2. Iskow, Julie & Sexton, Richard, 1992. "Bargaining Associations in Grower-Processor Markets for Fruits and Vegetables," Research Reports 279811, United States Department of Agriculture, Rural Development.
    3. Brent Hueth & Philippe Marcoul, 2002. "Information Sharing and Oligopoly in Agricultural Markets: The Role of Bargaining Associations," Center for Agricultural and Rural Development (CARD) Publications 02-wp313, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Hueth, Brent & Marcoul, Philippe, 2002. "Information Sharing And Oligopoly In Agricultural Markets: The Role Of Bargaining Associations," Hebrew University of Jerusalem Archive 18576, Hebrew University of Jerusalem.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hueth Brent & Marcoul Philippe, 2003. "An Essay on Cooperative Bargaining in U.S. Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, March.
    2. Chin, Ming-Chin & Weaver, Robert D., 2004. "Forward Contracting Specification Through Collective Bargaining," 2004 Annual meeting, August 1-4, Denver, CO 20006, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Torgerson, Randall E. & Reynolds, Bruce J. & Gray, Thomas W., "undated". "Evolution of Cooperative Thought, Theory and Purpose," Cooperatives: Their Importance in the Future Food and Agricultural System - FAMC 1990 Conference 265908, Food and Agricultural Marketing Consortium (FAMC).
    4. Banaszak, Ilona & Beckmann, Volker, 2010. "Compliance with Rules and Sanctions in Producer Groups in Poland," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 38(01), pages 1-15.
    5. Zhanwen Shi & Erbao Cao, 2020. "Contract farming problems and games under yield uncertainty," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 64(4), pages 1210-1238, October.
    6. Rick Welsh, 2009. "Farm and market structure, industrial regulation and rural community welfare: conceptual and methodological issues," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 26(1), pages 21-28, March.
    7. Brent Hueth & Philippe Marcoul, 2002. "Information Sharing and Oligopoly in Agricultural Markets: The Role of Bargaining Associations," Center for Agricultural and Rural Development (CARD) Publications 02-wp313, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    8. Mahesh Nagarajan & Yehuda Bassok, 2008. "A Bargaining Framework in Supply Chains: The Assembly Problem," Management Science, INFORMS, vol. 54(8), pages 1482-1496, August.
    9. Griffith, G.R., 2000. "Competition in the Food Marketing Chain," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 171911, Australian Agricultural and Resource Economics Society.
    10. Jos Bijman Jan Brusselaers & Krijn Poppe & Tomas Garcia Azcarate, 2014. "Dp Policy Measures Impact the Position and Performance of Farmers' Cooperatives in the EU?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 85(4), pages 531-553, December.
    11. Enjolras, Geoffroy & Capitanio, Fabian & Aubert, Magali & Adinolfi, Felice, "undated". "Direct payments, crop insurance and the volatility of farm income. Some evidence in France and in Italy," 123rd Seminar, February 23-24, 2012, Dublin, Ireland 122478, European Association of Agricultural Economists.
    12. Lang, Mahlon & Swank, Chuck & Franklin, Donald K. & Torgerson, Randall & Welty, John, 1994. "Agricultural Bargaining: In a Competitive World," Service Reports (SR) 280692, United States Department of Agriculture, Rural Development.
    13. Salas, Paula Cordero, 2012. "Does Contract Enforcement Limit the Distribution of Bargaining Power? An Experimental Study," 2012 Annual Meeting, August 12-14, 2012, Seattle, Washington 124503, Agricultural and Applied Economics Association.
    14. repec:ags:agsaem:259079 is not listed on IDEAS
    15. Edward Oczkowski, 2006. "Nash Bargaining And Co‐Operatives," Australian Economic Papers, Wiley Blackwell, vol. 45(2), pages 89-98, June.
    16. Nagarajan, Mahesh & Sosic, Greys, 2008. "Game-theoretic analysis of cooperation among supply chain agents: Review and extensions," European Journal of Operational Research, Elsevier, vol. 187(3), pages 719-745, June.
    17. Griffith, Garry R., 2000. "Competition in the food marketing chain," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 44(3), pages 1-35.
    18. Natacha Fauvet & Jean-Christophe Pereau, 2014. "Nutrient Allowances Market and Wetland Abatement," Working Papers 2014.06, FAERE - French Association of Environmental and Resource Economists.
    19. Cordero Salas, Paula, 2016. "Relational Contracts and Product Quality: The Effect of Bargaining Power on Efficiency and Distribution," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(3), pages 1-19.
    20. Marcus, Gerald D. & Frederick, Donald A., 1994. "FARM BARGAINING COOPERATIVES: Group Action, Greater Gain," Research Reports 279983, United States Department of Agriculture, Rural Development.
    21. Reynolds, Bruce J., 2010. "Choosing to Defect from Cooperation—the 2003 Collapse of California Pear Bargaining," Journal of Cooperatives, NCERA-210, vol. 24, pages 1-20.

    More about this item

    Keywords

    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:hebarc:18526. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.