The increasing use of agricultural contracts and processor concentration raises concerns that processors may offer lower contract prices in absence of local competition. This study examines the price competitiveness of marketing and production contracts depending on the availability of alternative marketing options. A propensity score matching method is used to [...]
Organization: Department of Agricultural Economics, University of Kentucky, Lexington, Kentucky, USA
A quad-partite model of contract farming involving research institutes, farmers, industries and financial institutions was developed. The model introduced the concept of public-private partnership, and offers long-term benefits to both the farmers and wood-based industries, such as increased income. The model was introduced in the state of Tamil Nadu and [...]
Organization: Forest College and Research Institute, Tamil Nadu Agricultural University, Mettupalayam - India
This study examines (i) the extent to which characteristics of contract design are responsible for differences between public and private contract designs, (ii) the comparative adaptability of the prevailing public and private contract designs, and (iii) the determinants of the public and private contract profiles in wheat seed farming in [...]
Organization: National Centre for Agricultural Economics and Policy Research (NCAP), New Delhi - India.
Economists struggle with predicting what makes an institutional arrangement successful for market access in Africa. According to New Institutional Economics theory, the rational farmer will chose to engage in the institutional arrangement that is best performing in minimizing transaction costs, or that create order in the economy. Yet, failures have [...]
As dairy farms grow and specialize in milking cows, raising replacement heifers is increasingly outsourced. Perhaps the largest challenge of outsourcing the heifer enterprise involves quality, measured as milk production potential, and the possibility for moral hazard due to hidden action on the part of the custom heifer grower. A [...]
Organization: Department of Agricultural Economics, Purdue University, West Lafayette, USA.
The objectives of this research were to compare the production costs and returns between contract and non-contract farming systems of baby corn production, and to analyze the procurement costs of the company through contract versus non-contract (open market) channels. The data were collected during the crop year 2005/2006 from 60 [...]
Organization: Department of Agricultural and Resource Economics, Faculty of Economics, Kasetsart University, Bangkok 10900, Thailand
In this paper, transaction cost is introduced into the general firm-level export behavior model. By so doing, we constructed a theoretical model to explain how connection modes between leading agribusiness enterprises and rural households affect the firm-level agricultural products export. Analyzing the dataset of 561 national leading agribusinesses of the [...]
Organization: Laboratory of Environmental Life Economics, Division of International Agricultural Resource Economics and Business Administration, Department of Agricultural and Resource Economics, Faculty of Agriculture, Kyushu University, Fukuoka, Japan.
This article describes the process of institutional transition of contract farming in Shandong Province. The changes in preparatory stage of contract farming express in: One, the information asymmetry of the two sides of the contract is reducing; Two, the security system of contract farming tends to be perfection; Three, the [...]
Organization: College of Economics and Management, Qingdao Agricultural University, Qingdao, China.
This paper highlights a few successful cases of contract farming in India and discusses the history, objectives, and types of contract farming as well as its benefits to farmers, firms and the public sector. Also discussed are several concerns about the desirability of contract farming from a poverty and equity [...]
Organization: Centre for Management Studies, Dharmsinh Desai University, Nadiad, Kheda (Gujarat), India.
A study of 49 contract broiler farmers under 4 leading integrators in and around Puducherry revealed that the contract is one sided favouring the integrator as the contract stipulates standards for the outputs from the farmer but it does not specify any standards for the inputs the integrator supplies such [...]
Organization: Rajiv Gandhi College of Veterinary and Animal Sciences, Puducherry 605 009, India