Cotton producers' choice of marketing techniques

Oscar Vergara, Keith Coble, Thomas O. Knight, George F. Patrick and Alan E. Baquet
Additional contact information
Oscar Vergara: AIR Worldwide Corporation, 131 Dartmouth Street, Boston, MA 02116., E-mail: OVergara@air-worldwide.com, Postal: AIR Worldwide Corporation, 131 Dartmouth Street, Boston, MA 02116., E-mail: OVergara@air-worldwide.com
Thomas O. Knight: Department of Agricultural and Applied Economics, Texas Tech University, Box 42132, Lubbock, Texas 79409. E-mail: Tom.Knight@ttech.edu, Postal: Department of Agricultural and Applied Economics, Texas Tech University, Box 42132, Lubbock, Texas 79409. E-mail: Tom.Knight@ttech.edu
George F. Patrick: Department of Agricultural Economics, Purdue University, 403 W. State St. West Lafayette, Indiana 47907-2056., E-mail: Gpatrick@purdue.edu, Postal: Department of Agricultural Economics, Purdue University, 403 W. State St. West Lafayette, Indiana 47907-2056., E-mail: Gpatrick@purdue.edu
Alan E. Baquet: Institute of Agriculture and Natural Resources, University of Nebraska, 202 Agricultural Hall, Lincoln, Nebraska 68583-0708., E-mail: Abaquet@unlnotes.unl.edu, Postal: Institute of Agriculture and Natural Resources, University of Nebraska, 202 Agricultural Hall, Lincoln, Nebraska 68583-0708., E-mail: Abaquet@unlnotes.unl.edu

Agribusiness, 2004, vol. 20, issue 4, 465-479

Abstract: A survey of cotton producers was conducted in Mississippi and Texas. The econometric model consists of a multinomial logit model of cotton producers' choice of marketing techniques. The results indicate that cotton acres positively influence pooling and negatively influence cash sales. Producers willing to incur higher transaction costs in market information systems and training tend to choose futures|options contracts and forward pricing. It was found that risk-averse producers tend not to choose pooling contracts. On the other hand, producers who seek abnormal gains through speculation tend to choose pooling contracts. Finally, producers who perceive markets as being price-efficient prefer cash sales. [EconLit citation: Q130.] © 2004 Wiley Periodicals, Inc. Agribusiness 20: 465-479, 2004.

Date: 2004
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Persistent link: https://EconPapers.repec.org/RePEc:wly:agribz:v:20:y:2004:i:4:p:465-479

DOI: 10.1002/agr.20023

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