Linking marketing choices with farming practices of grain producers: A farm level modeling approach applied to the South-west of France

Aymeric Ricome, Charilaos Kephaliacos, Francoise Carpy-Goulard, Aude Ridier and Karim Chaib

No 60914, 114th Seminar, April 15-16, 2010, Berlin, Germany from European Association of Agricultural Economists

Abstract: With the increasing commodity prices volatility over the last years and the successive agricultural policy reforms, European grain producers face greater uncertainty. To better understand consequences of a price risk increase on production decisions, marketing decisions and farm revenue as well as linkage between production and marketing decisions, we develop a multiperiodic risk farm model. Production decisions concern selections of crop mix and farming practices (conventional or integrated farming) while marketing decisions focus on four types of pricing arrangements. The model is applied to a representative farmer of a region located in the Southwest of France. The results exposed in this paper shows that with a price risk increase, production adjustments of a risk averse farmer are oriented toward less risky (environmentally friendly) farming practices unless marketing contracts allow to mitigate price risk.

Keywords: Agricultural and Food Policy; Farm Management (search for similar items in EconPapers)
Pages: 24
Date: 2010-04
New Economics Papers: this item is included in nep-agr and nep-mkt
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Persistent link: https://EconPapers.repec.org/RePEc:ags:eaa114:60914

DOI: 10.22004/ag.econ.60914

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