An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans
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Contracts serve as coordination mechanisms which allocate value, risk, and decision rights across buyers and sellers. The use of marketing contracts in agriculture, specifically for crop production, has been increasing over the past decade. This study investigates the determinants of agricultural marketing contract design employing data from the USDA's Agricultural Resource Management Survey. Models are estimated to analyze the association between producer and contractor characteristics, the decision to produce under contract, and the types of contract structures observed in practice, while controlling for the potential for endogenous matching between contracting parties. Results indicate that while certain producer characteristics are significantly associated with the decision to produce corn or soybeans under contract, there is no significant association between those characteristics and specific contract attributes.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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Articles in the same Issue
- Article
- Evaluating Reforms in Canadian Chicken Marketing Mechanisms Using a Linear-Quadratic Inventory Model
- Prices as Quality Signals: Evidence from the Wine Market
- The Effect of Proposition 2 on the Demand for Eggs in California
- An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans
- Protected Designation of Origin Revisited
- The Influence of Local Selling Decisions on Organic Farm Incomes
- Optimal Farmer Choice of Marketing Channels in the Ethiopian Banana Market
- Prices, Promotions, and Supermarket Mergers
- The Impact of Perceived Prices on Willingness to Pay in Experimental Auctions
- The Demand for Seafood Eco-Labels in France
- Agricultural Trade Liberalization and Downstream Market Power: The Ad Valorem Case
