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Abstract

Adoption of marketing contracts represents a subtle evolution from spot markets to more formal coordination using classical bilateral contracts. The increase use of marketing contracts for corn and soybeans has been observed within the context of a changing landscape to marketing outlets. Since 2000, there has been consolidation, changes in ownership of grain merchants and processors, and an unprecedented emergence of processors for domestic bioenergy. In this study, we assess the effect site-specificity has, for a given farms location, in the marketing contract adoption decision. Our preliminary results indicate support for site-specificity as an important factor to marketing contract adoption.

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