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Exploring the Potential Effects of Organic Production on Contracting in American Agribusiness

Volpe, Richard J.,

No 21086, 2006 Annual meeting, July 23-26, Long Beach, CA from American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association)

Abstract: Organic production, while still a niche market in U.S. agriculture, is growing at a rapid rate. This paper argues that organic producers, particularly those seeking certification to sell at the retail level, share many characteristics with conventional producers who opt for contracting over independence. These include yield risk, search and transaction costs, and technological changes. Depending on the rate at which federal assistance programs grow and evolve to serve organic producers, contracting may become a popular choice within the organic sector. In turn, contracting may come to cover a significantly larger share of agricultural production as the organic sector continues to grow.

Keywords: Agribusiness (search for similar items in EconPapers)
Pages: 25
Date: 2006
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea06:21086

DOI: 10.22004/ag.econ.21086

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