The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France

Aymeric Ricome (), Karim Chaïb, Aude Ridier, Charilaos Kephaliacos () and Françoise Carpy-Goulard ()
Additional contact information
Aymeric Ricome: JRC - European Commission - Joint Research Centre [Ispra]
Karim Chaïb: INP - PURPAN - Ecole d'Ingénieurs de Purpan - Toulouse INP - Institut National Polytechnique (Toulouse) - UT - Université de Toulouse
Charilaos Kephaliacos: LEREPS - Laboratoire d'Etude et de Recherche sur l'Economie, les Politiques et les Systèmes Sociaux - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - UT2J - Université Toulouse - Jean Jaurès - UT - Université de Toulouse - Institut d'Études Politiques [IEP] - Toulouse - ENSFEA - École Nationale Supérieure de Formation de l'Enseignement Agricole de Toulouse-Auzeville

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Abstract: This paper analyzes the link between choices of production technologies and marketing contracts. We first develop an analytical model showing that both decisions are linked and influenced by risk and direct payments. Then, a numerical application based on a stochastic farm model is implemented on a representative farm from southwestern France. Among other things, we find that a wide availability of marketing contracts reduces the impact of agricultural policies on agricultural practices. Moreover, marketing contracts can encourage farmers to adopt green practices, which are—in France—riskier than conventional techniques.

Keywords: crop farming; forwarding contracts; multiperiodic farm model; risk analysis; stochastic simulation (search for similar items in EconPapers)
Date: 2016-09
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Citations: View citations in EconPapers (6)

Published in Journal of Agricultural and Resource Economics, 2016, 41 (3), pp.347-371

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Journal Article: The Role of Marketing Contracts in the Adoption of Low-Input Production Practices in the Presence of Income Supports: An Application in Southwestern France (2016)
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