Agricultural Supply Chain Financing Strategies under the Impact of Risk Attitudes

Bai, Shizhen; Jia, Xuelian

doi:10.3390/su14148787

Cited by 10 publications

(13 citation statements)

References 35 publications

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“…Therefore, the most relevant researches for us are Peng and Pang (2019), Ye et al (2020), Bai and Jia (2022), and Liao et al (2023). Specifically, under the CVaR criterion and yield uncertainty, Peng and Pang (2019) studied a three‐level contract farming supply chain with a risk‐averse farmer, risk‐neutral supplier, and risk‐neutral distributor; Ye et al (2020) proposed a “revenue‐sharing + production cost‐sharing + guaranteed money” contract to coordinate the contract farming supply chain with multiple risk‐averse farmers; Bai and Jia (2022) studied a contract farming supply chain consisting of a risk‐neutral e‐commerce platform and a risk‐averse farmer from the perspective of financing mode selection; and Liao et al (2023) considered a three‐level contract farming supply chain comprising a risk‐averse farmer, a risk‐neutral supplier, and a risk‐averse retailer. We also analyze a contract farming supply chain consisting of a risk‐neutral platform and a risk‐averse farmer under CVaR criterion.…”

Section: Literature Reviewmentioning

confidence: 99%

Digital technology adoption strategies for a contract farming supply chain under CVaR criterion

Liao,

2024

Manage Decis Econ

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This study considers a contract farming supply chain consisting of a platform and a risk‐averse farmer with yield uncertainty. It establishes game theory models with and without digital technology under CVaR criterion and analyzes three digital cooperation mechanisms. We find that when the wholesale price is moderate, both parties will choose a cost‐sharing contract; when the wholesale price is high, both parties will choose to let the farmer bear the cost of digital investment; when the farmer uses digital technology to grow agricultural products, the platform should not provide the farmer with a low wholesale price, especially for the farmer with low risk aversion.

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Section: Literature Reviewmentioning

confidence: 99%

Digital technology adoption strategies for a contract farming supply chain under CVaR criterion

Liao,

2024

Manage Decis Econ

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“…Tunca and Zhu (2018) studied the interest rate and price decision issues of a supply chain with e-commerce platform participation. Bai and Jia (2022) studied the conditions for farmers to choose e-commerce platforms to provide financing for them, considering the risk of output uncertainty.…”

Section: Supply Chain Financing With the Participation Of E-commerce ...mentioning

confidence: 99%

The Impact of the Cost-Sharing Contract on Capital-Constrained Agricultural Supply Chains

Bai

Jia

2023

SAGE Open

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This study attempts to determine the optimal production and pricing decisions of E-Agri-SCF (agricultural product supply chain financed by e-commerce) and analyzes the influence of financing parameters on the optimal decision. Research indicates that the optimal purchase price decision increases with the expansion of the financing interest rate and declines with the expansion of the capital opportunity cost. The expected output factor of agricultural products has no influence on the optimal purchase price decision. The optimal production decision of the farmer declines with the expansion of the financing interest rate and the opportunity cost of capital and increases with the increase in the expected output factor of agricultural products. In particular, we show that due to the uncertainty in the output of agricultural products, the losses caused by decentralized decision-making in the E-Agri-SCF will increase. Therefore, this article proposes using a cost-sharing contract to promote the coordination of E-Agri-SCF. We prove that when farmers share more costs, they obtain higher benefits, while the e-commerce platform does the opposite. This is because the participation of e-commerce platforms in financing has changed the revenue structure of the supply chain. The findings of this article are very meaningful, as they provide management opinions on the financing terms of E-Agri-SCF.

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“…During the early stages of agricultural production and cultivation, farmers encounter nancial constraints due to the need for capital and expenses (Li and Sun, 2022;Bai and Jia, 2022). Often, farmers have to rely on traditional borrowing methods from banks to obtain the necessary capital for production and livelihood expenses throughout the production process.…”

Section: Introductionmentioning

confidence: 99%

Design, simulation and feasibility of the innovative agricultural warehouse receipt system through dynamic programming and agent-based models

Riazi,

Mojaverian,

Laskookalayeh

et al. 2024

Preprint

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To address marketing challenges in the agricultural sector, provide financial support for small-scale farmers over marketing seasons, manage price risks of agricultural products, and enhance the functioning of agricultural mercantile exchanges, it is attainable to implement an efficient and compliant warehouse receipt system (WRS) that aligns with the legal, institutional, social, and economic-financial conditions of a country. The aim of this study is to design, simulate, and assess the feasibility of an innovative WRS in the agricultural sector. To achieve this, a WRS was designed and evaluated for maize crop in Iran. The research methodology of this study is divided into three main parts: design, simulation, and feasibility assessment of the WRS. The design process incorporated the FAO-provided (2009) warehouse receipt system development, considering the experiences of various countries and the institutional and financial regulations specific to Iran. Additionally, a dynamic programming model was used to simulate the system, and an agent-based model was utilized for system feasibility assessment. The study results demonstrated that it is possible to design an innovative and efficient WRS by involving four key actors, including farmers, buyers, mercantile exchange company, and the warehouse (governmental institution), and establishing clear communications among them. Based on simulation results using dynamic programming model, it was evident that four parameters, namely the annualized loan interest rate, the valuation coefficient for loan collateral, price volatility of the product over the marketing season, and the warehouse cost-to-product value ratio, significantly impact the adoption of the WRS by farmers. In conclusion, the findings from the agent-based model revealed that setting the annualized loan interest rate at 8%, a collateral valuation coefficient of 85%, price fluctuations over the non-harvest time at 60%, and a warehouse cost-to-product value ratio of 2% can result in the participation of nearly 100% of farmers in the proposed WRS.

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Agricultural Supply Chain Financing Strategies under the Impact of Risk Attitudes

Cited by 10 publications

References 35 publications

Digital technology adoption strategies for a contract farming supply chain under CVaR criterion

Digital technology adoption strategies for a contract farming supply chain under CVaR criterion

The Impact of the Cost-Sharing Contract on Capital-Constrained Agricultural Supply Chains

Design, simulation and feasibility of the innovative agricultural warehouse receipt system through dynamic programming and agent-based models

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