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Abstract
This paper analyzes the link between choices of production technologies and marketing contracts.
We first develop an analytical model showing that both decisions are linked and influenced
by risk and direct payments. Then, a numerical application based on a stochastic farm model
is implemented on a representative farm from southwestern France. Among other things, we
find that a wide availability of marketing contracts reduces the impact of agricultural policies
on agricultural practices. Moreover, marketing contracts can encourage farmers to adopt green
practices, which are—in France—riskier than conventional techniques.