Factors Affecting the Selection of Business Arrangements by U.S. Hog Farmers

Christopher G. Davis and Jeffrey Gillespie

Review of Agricultural Economics, 2007, vol. 29, issue 2, 331-348

Abstract: This study examines the influences of risk, transaction costs, autonomy, size, farm demographics, and socioeconomic characteristics on the choice of four business arrangements by U.S. hog producers. Data for this analysis were obtained from a national survey of U.S. hog producers. This research supports other studies that discuss the role of risk in the advent of contracting and transaction costs in the selection of business arrangements. The study results suggest that those who value autonomy less are currently adopters of contracts. Copyright 2007, Oxford University Press.

Date: 2007
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