Reynaud, Arnaud and Ricome, Aymeric
(2022)
Marketing contract choices in agriculture: the role of price expectation and price risk management.
Agricultural Economics, vol. 53 (n° 1).
pp. 170-186.
Abstract
We identify factors involved in the decision of farmers to use marketing contracts (pool, storage and forward contracts), and we explicitly account for the hedging and price-enhancement components of this decision. Using panel corner solution models (Tobit and double-hurdle) to represent farmers' contracting decision using a sample of French cereal producers, we find that both the hedging and the price-enhancement motives are important factors driving marketing choices. When risk aversion or exposure to price risk rises, the price-enhancement motive becomes less influential. Farmers appear to be more reluctant to base their marketing decisions on their price expectations in that case.
Item Type: | Article |
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Language: | English |
Date: | March 2022 |
Refereed: | Yes |
JEL Classification: | Q13 - Agricultural Markets and Marketing; Cooperatives; Agribusiness Q14 - Agricultural Finance |
Subjects: | B- ECONOMIE ET FINANCE |
Divisions: | TSE-R (Toulouse) |
Site: | UT1 |
Date Deposited: | 09 Mar 2022 11:06 |
Last Modified: | 19 Jan 2023 13:58 |
OAI Identifier: | oai:tse-fr.eu:126694 |
URI: | https://publications.ut-capitole.fr/id/eprint/44755 |