Agricultural Contracting Update: Contracts in 2003
by James MacDonald
and Penni Korb
Economic Information Bulletin No. (EIB-9) 26 pp, January 2006
Marketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2003, up from 36 percent in 2001 and a substantial increase over estimated values of 28 percent for 1991 and 11 percent in 1969. Large farms are far more likely to contract than small farms; in fact, contracts cover over half of the value of production from farms with at least $1 million in sales. Although use of both production and marketing contracts has grown over time, growth is more rapid for production contracts, which are largely used for livestock.
Keywords: farm structure, production contracts, marketing contracts, farm size, contracting, vertical coordination, market structure, risk analysis
In this publication...
- Report Summary, 105 kb
- Abstract, Acknowledgments, Contents, and Summary, 51 kb
- Summary, 38 kb
- What Are Agricultural Contracts?, 37 kb
- Data on Contracting, 39 kb
- How Contracting Has Grown, 750 kb
- Prices, Fees, and Terms in Agricultural Contracts, 64 kb
- Conclusions, 34 kb
- References, 35 kb
- Appendix, 48 kb
- Entire Report, 1,246 kb
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