Hog Producer Preferences for Marketing Contract Attributes

Posted: 26 Mar 2004

See all articles by Brian E. Roe

Brian E. Roe

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Thomas Lynn Sporleder

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics

Betsy Belleville

affiliation not provided to SSRN

Abstract

We use a stated preference instrument to elicit producer preferences for the attributes of risk-shifting hog marketing contracts and express acceptable producer trade-offs between contract attributes in a convenient dollar metric. Respondents value an increase in a window contract's price ceiling three to five times more than the same increase in the price floor, which suggests that hog producers dislike contracts that limit up-side price potential (limit positive skewness). The contractor's organizational form is also important. Cooperative forms are preferred by many respondents, particularly those who state that trust in the contractor is an important antecedent for any contractual relationship.

Suggested Citation

Roe, Brian E. and Sporleder, Thomas Lynn and Belleville, Betsy, Hog Producer Preferences for Marketing Contract Attributes. American Journal of Agricultural Economics, Vol. 86, No. 1, pp. 115-123, February 2004. Available at SSRN: https://ssrn.com/abstract=513304

Brian E. Roe (Contact Author)

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

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Columbus, OH 43210-1067
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614-688-5777 (Phone)

HOME PAGE: http://https://aede.osu.edu/our-people/brian-e-roe

Thomas Lynn Sporleder

Ohio State University (OSU) - Department of Agricultural, Environmental & Development Economics ( email )

2120 Fyffe Rd
Columbus, OH 43210-1067
United States

Betsy Belleville

affiliation not provided to SSRN

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