Contract and Exit Decisions in Finisher Hog Production

Fengxia Dong, David Hennessy and Helen Jensen

American Journal of Agricultural Economics, 2010, vol. 92, issue 3, 667-684

Abstract: Finisher hog production in North America has shifted toward larger units and contract format since 1990. Exit among independent growers has been high. We develop a model showing that growers with any of three efficiency attributes (lower innate hazard of exit, variable costs, or contract adoption costs) are more likely to contract, produce more, and expend more on business protection. Using 2004 Agricultural Resource Management Survey data, a recursive bivariate probit model confirms that contracting producers are less likely to exit. Specialization increases the probability of contracting. Education, nonfarm income, and older production facilities are significant in increasing expected exit. Copyright 2010, Oxford University Press.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://hdl.handle.net/10.1093/ajae/aap041 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Contract and Exit Decisions in Finisher Hog Production (2010)
Working Paper: Contract and Exit Decisions in Finisher Hog Production (2010)
Working Paper: Contract and Exit Decisions in Finisher Hog Production (2009)
Working Paper: Contract and Exit Decisions in Finisher Hog Production (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:ajagec:v:92:y:2010:i:3:p:667-684

Access Statistics for this article

American Journal of Agricultural Economics is currently edited by Madhu Khanna, Brian E. Roe, James Vercammen and JunJie Wu

More articles in American Journal of Agricultural Economics from Agricultural and Applied Economics Association Contact information at EDIRC.
Bibliographic data for series maintained by Oxford University Press (joanna.bergh@oup.com).