Contracting In Agriculture: A Primer For Farm Lenders
Contracting in agriculture has increased over the past several decades. This activity has heightened concerns about concentration, market power, and farmer welfare. The purpose of this paper is to describe some of the underlying motivations for contracting and to highlight some of the trade-offs made when making contracting decisions. These illustrations are intended to inform readers of the economic conditions for contracting, not provide empirical evidence of their implications, costs, or benefits.
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