Agricultural Contracting Update: Contracts in 2008

Marketing and production contracts covered 39 percent of the value of U.S. agricultural production in 2008, up from 36 percent in 2001, and a substantial increase over 28 percent in 1991 and 11 percent in 1969. However, aggregate contract use has stabilized in recent years and no longer suggests a strong trend. Contracts between farmers and their buyers are reached prior to harvest (or before the completion stage for livestock)and govern the terms under which products are transferred from the farm. Contracts are far more likely to be used on large farms than on small farms, and they form one element in a package of risk management tools available to farmers. Production contracts are used widely in livestock production, while marketing contracts are important to the production of many crops.


Issue Date:
2011-02
Publication Type:
Report
PURL Identifier:
http://purl.umn.edu/101279
Total Pages:
36
Series Statement:
Economic Information Bulletin
Number 72




 Record created 2017-04-01, last modified 2017-08-26

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