Agricultural Contracting Update: Contracts in 2008

James MacDonald and Penelope J. Korb

No 101279, Economic Information Bulletin from United States Department of Agriculture, Economic Research Service

Abstract: Marketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2008, up from 36 percent in 2001, and a substantial increase over 28 percent in 1991 and 11 percent in 1969. However, aggregate contract use has stabilized in recent years and no longer suggests a strong trend. Contracts between farmers and their buyers are reached prior to harvest (or before the completion stage for livestock)and govern the terms under which products are transferred from the farm. Contracts are far more likely to be used on large farms than on small farms, and they form one element in a package of risk management tools available to farmers. Production contracts are used widely in livestock production, while marketing contracts are important to the production of many crops.

Keywords: Agribusiness; Farm Management; Livestock Production/Industries; Risk and Uncertainty (search for similar items in EconPapers)
Pages: 36
Date: 2011-02
New Economics Papers: this item is included in nep-agr
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Citations: View citations in EconPapers (42)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uersib:101279

DOI: 10.22004/ag.econ.101279

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