Farmers' Use of Marketing and Production Contracts

Contracts are an integral part of the production and marketing of selected livestock commodities, such as broilers, turkeys, eggs, and milk. Such crops as fruit, vegetables, and sugar beets and cane are mostly produced under contracts. In the past, farm receipts were assumed to be distributed across all farm families in proportion to their production. Today, contractors receive a large share of farm receipts, formerly assumed to go to the operator's family. Contractors typically bear a large share of production and price risk, and earn the majority of net income from the commodity's production. Farmers may benefit by being able to expand their operations more rapidly than otherwise possible--perhaps with less debt and fewer financial risks.


Issue Date:
Dec 01 1996
Publication Type:
Report
Language:
English
Total Pages:
25
Series Statement:
Agricultural Economic Report Number 747




 Record created 2017-08-17, last modified 2017-08-23

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