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Marketing Contracts and Risk Management for Cereal Producers

Caroline Roussy, Aude Rider, Karim Chaib and Marie Boyet

No 261106, 2017 International Congress, August 28-September 1, 2017, Parma, Italy from European Association of Agricultural Economists

Abstract: This article presents an analysis of risk management by French cereal farmers Producers are subject to market and production risks and to environmental restrictions. The paper analyses cereal farmers’ strategies to manage risks through marketing contracts and production decisions. Three main categories of marketing contracts are adopted bearing different risk levels: forward contracts, average price contracts and spot contracts. A hundred wheat producers are surveyed in SouthWest France. The quantitative analysis of their contractual choices shows that risk perceptions and the farmer’s level of education have an influence on contractual choice while crop diversification is negatively correlated with forward contracts.

Keywords: Agricultural and Food Policy; Marketing (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-cta and nep-rmg
Date: 2017-08-28
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