Producer perceptions and attitudes toward hog marketing contracts

Abstract

The objective of this research is to use survey respondent perceptions and demographic data to assess factors affecting producer's attitudes towards hog marketing contracts. Six statements related to marketing contracts were presented to subjects to measure their attitudes toward the dominant method used by packers to procure hogs. The results suggest that the profitability of the producer, marketing method employed by the producer and the number of packers to whom the producer sold hogs significantly influences attitudes towards marketing contracts. These results suggest that low-cost producers who market hogs via individual or group marketing contracts are more positive, or in some cases less negative, in their attitudes towards marketing contracts. Although prior nonparametric analyses provide some insight into factors influencing producers' views of marketing contracts, this analyses allows inference of statistical significance. [EconLit citations: D400, L100]. © 2010 Wiley Periodicals, Inc.

Risk attitudes and the structure of decision‐making: evidence from the Illinois hog industry

“…An alternative specification coded as the percentage of sales by contract behaves similarly, as most producers with these contracts utilize them for all of the hogs they market. Approximately 29% of hog producers in our sample rely on marketing contracts compared to about 5% in the nationally representative USDA Agricultural Resource Management Survey (Zheng et al., ) and 25% in a large scale survey of active industry participants (Boessen et al., ). In this respect, our sample appears to be more representative of larger, more active producers.…”

A Latent Class Cluster Analysis of Farmers’ Attitudes Towards Contract Design in the Dairy Industry

“…A further line of research focuses on the analysis of attitudes and motivations of the contracting parties. Farmers’ attitudes and motivations are considered crucial factors for the design of widely accepted governance structures (Boessen et al, ; Schulze et al, ). Consequently, this paper is positioned in the behavioral research stream to examine dairy farmers’ attitudes towards contracting.…”

“…Drescher and Maurer () show that fear of losing autonomy and of being at the mercy of one market partner hinders the establishment of contracts. Boessen et al () find that “independent” producers are more likely to reject marketing contracts. The fear of losing entrepreneurial freedom is also confirmed by other authors (Key, ; Key & MacDonald, ; MacDonald et al, ).…”

“…This paper contributes to the literature by providing insights into behavioral aspects of agricultural contracting or, in other words, “how producers view marketing contracts” (Boessen et al, ). To our knowledge, this is the first study covering the attitudes of dairy farmers towards contracting as well as their preferences for selected attributes of milk marketing contracts.…”

Do durum wheat producers benefit of vertical coordination?

“…The literature can be divided into two major strands: Some authors have preferred the study of the decisional process that leads to subscribe the agreements, highlighting which characteristics, attitudes, and motivations are able to promote stable relationships among stakeholders (Drescher and Maurer 1999;Kularatna et al 2001;Bogetoft and Olsen 2002;Kirstem and Sartorius 2002;Vetter and Karantinimis 2002;Key and McBride 2003;Sykuta and Parcell 2003;Key 2004;Mènard and Valceschini 2005;Key and MacDonald 2006;Boessen et al 2010). Other scholars focused their studies on analysis of the effects, deriving from cooperation, on the efficiency, profitability, and competitiveness of the supply chain (Wang and Jaenicke 2006;Hendrikse 2007;Miyata et al 2009;Jarzebowski et al 2013).…”