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Agricultural Cooperatives and Contract Price Competitiveness

Author

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  • Katchova, Ani L.
Abstract
This study examines the price competitiveness of marketing and production contracts depending on whether contracts are with cooperatives or investorowned firms. A propensity score matching method is used to compare prices using contract data from a national farm-level survey. The results show that prices of agricultural contracts with cooperatives are not significantly different from those with investor-owned firms, which indicates that cooperatives are adhering to recommended business practices of offering market prices to their members.

Suggested Citation

  • Katchova, Ani L., 2010. "Agricultural Cooperatives and Contract Price Competitiveness," Journal of Cooperatives, NCERA-210, vol. 24, pages 1-13.
    • Handle: RePEc:ags:jlcoop:164698
    DOI: 10.22004/ag.econ.164698
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    References listed on IDEAS

    as
    1. Hueth Brent & Marcoul Philippe, 2003. "An Essay on Cooperative Bargaining in U.S. Agricultural Markets," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 1(1), pages 1-15, March.
    2. Harvey S. James Jr. & Michael E. Sykuta, 2006. "Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 135-153.
    3. Ani L. Katchova & Mario J. Miranda, 2004. "Two-Step Econometric Estimation of Farm Characteristics Affecting Marketing Contract Decisions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(1), pages 88-102.
    4. MacDonald, James M. & Perry, Janet E. & Ahearn, Mary Clare & Banker, David E. & Chambers, William & Dimitri, Carolyn & Key, Nigel D. & Nelson, Kenneth E. & Southard, Leland W., 2004. "Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities," Agricultural Economic Reports 34013, United States Department of Agriculture, Economic Research Service.
    5. Leathers, Howard D., 2006. "Are Cooperatives Efficient When Membership is Voluntary?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 31(3), pages 1-10, December.
    6. Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
    7. Fabio R. Chaddad & Michael L. Cook & Thomas Heckelei, 2005. "Testing for the Presence of Financial Constraints in US Agricultural Cooperatives: An Investment Behaviour Approach," Journal of Agricultural Economics, Wiley Blackwell, vol. 56(3), pages 385-397, December.
    8. Christopher G. Davis & Jeffrey M. Gillespie, 2007. "Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 29(2), pages 331-348.
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    Cited by:

    1. Wu, Pei-Ju, 2016. "Eco-activities and operating performance in the computer and electronics industryAuthor-Name: Chopra, Sunil," European Journal of Operational Research, Elsevier, vol. 248(3), pages 971-981.
    2. Katchova, Ani L., 2013. "Agricultural Contracting and Agrifood Competition," Staff Papers 164515, University of Kentucky, Department of Agricultural Economics.

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