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Food Processors' Use of Contracts to Purchase Agricultural Inputs: Evidence from a Pennsylvania Survey
Published online by Cambridge University Press: 15 September 2016
Abstract
Using data from a survey of Pennsylvania food processors, we investigate what firm-level characteristics make a processor more or less likely to buy agricultural inputs and ingredients though contracts. We find that over 20 percent of Pennsylvania processors use contracts, and over 44 percent of agricultural inputs (based on value) are purchased under contract. We also analyze the two related questions of what firm attributes, attitudes, or other factors make a firm more likely to use contracts at all, and what factors lead a processor who does contract to use them more intensively.
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- Copyright © 2007 Northeastern Agricultural and Resource Economics Association
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