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Forward Contracting Of Inputs: A Farm-Level Analysis

Author

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  • Perry, Janet E.
  • Mishra, Ashok K.
Abstract
Forward contracting of inputs in production agriculture is becoming increasingly important as more farmers attempt to manage risk. Using a logit model and farm-level data, this analysis estimates the effect of factors on the probability of a producer using forward input contracting. Results suggest that use of contracting in selling of crops and livestock, technology, farm size, geographic location, participation in government commodity programs, and use of extension services are important factors affecting the choice to forward contract inputs.

Suggested Citation

  • Perry, Janet E. & Mishra, Ashok K., 1999. "Forward Contracting Of Inputs: A Farm-Level Analysis," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 17(2), pages 1-15.
    • Handle: RePEc:ags:jloagb:14729
    DOI: 10.22004/ag.econ.14729
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    References listed on IDEAS

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    Cited by:

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    2. Nagler, Amy M. & Menkhaus, Dale J. & Bastian, Christopher T. & Ehmke, Mariah D. & Coatney, Kalyn T., 2013. "Subsidy Incidence in Factor Markets: An Experimental Approach," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 45(1), pages 1-17, February.
    3. Jeffrey Gillespie & Richard Nehring & Isaac Sitienei, 2014. "The adoption of technologies, management practices, and production systems in U.S. milk production," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 2(1), pages 1-24, December.
    4. Tsiboe, Francis & Turner, Dylan, 2023. "The crop insurance demand response to premium subsidies: Evidence from U.S. Agriculture," Food Policy, Elsevier, vol. 119(C).
    5. Ueckermann, E.M. & Blignaut, J.N. & Gupta, Rangan & Raubenheimer, J., 2008. "Modelling South African grain farmers’ preferences to adopt derivative contracts using discrete choice models," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 47(2), pages 1-18, June.
    6. Mishra, Ashok K. & Williams, Robert P., 2006. "Internet Access and Use by Farm Households," 2006 Annual meeting, July 23-26, Long Beach, CA 21106, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    7. Mishra, Ashok K. & Park, Timothy A., 2005. "An Empirical Analysis of Internet Use by U.S. Farmers," Agricultural and Resource Economics Review, Cambridge University Press, vol. 34(2), pages 253-264, October.
    8. Todd H. Kuethe & Mitch Morehart, 2012. "The profit impacts of risk management tool adoption," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 72(1), pages 104-116, May.
    9. Riley, John Michael & Anderson, John D., 2010. "Comparison of Hedging Cost with Other Variable Input Costs," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2010, pages 1-9.
    10. Riley, John Michael & Anderson, John D., 2009. "Producer Perceptions of Corn, Soybean and Cotton Price Risk," 2009 Annual Meeting, January 31-February 3, 2009, Atlanta, Georgia 46865, Southern Agricultural Economics Association.
    11. Islam, Md Din II & Rahman, Airin & Sarker, M. Sazzadur Rahman & Luo, Jianchao & Liang, Hu, 2021. "Factors affecting farmers' willingness to adopt crop insurance to manage disaster risk: evidence from Bangladesh," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(3), April.

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