Teaching Agricultural Marketing and Production Contracts in Undergraduate Courses in Agribusiness and Agricultural Economics Programs

Yuliya Bolotova

ISU General Staff Papers from Iowa State University, Department of Economics

Abstract: This manuscript includes teaching materials for teaching agricultural marketing and production contracts in undergraduate courses in agribusiness and agricultural economics programs, which also can be used as educational materials in the Extension and outreach activities. The teaching materials include: (a) discussion of the structure of both types of contracts (their main terms and conditions); (b) introduction to agricultural marketing (forward) contracts as contracts for sale of goods and overview of the design of price mechanisms included in these contracts; (c) introduction to agricultural production contracts, the rationale for using these contracts, as compared to marketing contracts, and overview of the design of payment systems included in production contracts; and (d) caveats and practical advice. The teaching note includes two real-world sample contracts (a milk supply agreement and a broiler production agreement) and two contract check lists to be used to evaluate the main terms and conditions of these contracts, multiple choices questions, and answer keys for all questions.

Date: 2025-02-27
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