Do Proposed and Enacted Contract Farming Regulations Really Raise Farmer Income?

Tanner McCarty and Juan Sesmero

Applied Economic Perspectives and Policy, 2026, vol. 48, issue 2, 408-423

Abstract: Federal and state regulatory agencies have proposed or enacted interventions that curtail the use of certain payment instruments in contract farming to enhance farmer revenue. We study whether these interventions are likely to safeguard contract farmers in practice. We develop a framework in which empirically prevalent contracting arrangements emerge endogenously in equilibrium. We predict curtailing the use of formula pricing and production contracts (two prevalent interventions) would generally raise farmer revenue. The magnitude of the impact of these contract regulations on farmer revenue varies with the degree of moral hazard and primary risk source (price vs. yield) within the transaction.

Date: 2026
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/aepp.70036

Related works:
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:wly:apecpp:v:48:y:2026:i:2:p:408-423

Access Statistics for this article

More articles in Applied Economic Perspectives and Policy from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().