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The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France

Author

Listed:
  • Aymeric Ricome

    (JRC - European Commission - Joint Research Centre [Ispra])

  • Karim Chaïb

    (INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - Comue de Toulouse - Communauté d'universités et établissements de Toulouse)

  • Aude Ridier

    (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRA - Institut National de la Recherche Agronomique - AGROCAMPUS OUEST, INRA - Institut National de la Recherche Agronomique)

  • Charilaos Kephaliacos

    (LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - UT2J - Université Toulouse - Jean Jaurès - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville)

  • Françoise Carpy-Goulard

Abstract

This paper analyzes the link between choices of production technologies and marketing contracts. We first develop an analytical model showing that both decisions are linked and influenced by risk and direct payments. Then, a numerical application based on a stochastic farm model is implemented on a representative farm from southwestern France. Among other things, we find that a wide availability of marketing contracts reduces the impact of agricultural policies on agricultural practices. Moreover, marketing contracts can encourage farmers to adopt green practices, which are—in France—riskier than conventional techniques.

Suggested Citation

  • Aymeric Ricome & Karim Chaïb & Aude Ridier & Charilaos Kephaliacos & Françoise Carpy-Goulard, 2016. "The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France," Post-Print hal-01525411, HAL.
    • Handle: RePEc:hal:journl:hal-01525411
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    Cited by:

    1. Aude Ridier & Caroline Roussy & Karim Chaib, 2021. "Adoption of crop diversification by specialized grain farmers in south-western France: evidence from a choice-modelling experiment," Review of Agricultural, Food and Environmental Studies, Springer, vol. 102(3), pages 265-283, September.
    2. Aymeric Ricome & Arnaud Reynaud, 2022. "Marketing contract choices in agriculture: The role of price expectation and price risk management," Agricultural Economics, International Association of Agricultural Economists, vol. 53(1), pages 170-186, January.
    3. Weituschat, Chiara Sophia & Pascucci, Stefano & Materia, Valentina Cristiana & Caracciolo, Francesco, 2023. "Can contract farming support sustainable intensification in agri-food value chains?," Ecological Economics, Elsevier, vol. 211(C).
    4. Esther Devilliers & Niklas Möhring & Robert Finger, 2024. "Estimation and comparison of the performance of low-input and conventional agricultural production systems," Post-Print hal-04157545, HAL.
    5. Stefano Ciliberti & Marcello Stanco & Angelo Frascarelli & Giuseppe Marotta & Gaetano Martino & Concetta Nazzaro, 2022. "Sustainability Strategies and Contractual Arrangements in the Italian Pasta Supply Chain: An Analysis under the Neo Institutional Economics Lens," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    6. He Yiming & Luo Biliang & Zou Baoling, 2018. "Do Heterogeneous Agricultural Factors Affect Farmland Contractual Choice?—Evidence from China," Man and the Economy, De Gruyter, vol. 5(1), pages 1-12, June.

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