Data Sets
" "  
Search ERS

 
Publications

Print this page Print | E-mail this link E-mail | Bookmark & Share Bookmark/share | Translate this page Translate | Text only Text only | resize text smallresize text mediumresize text large

Forward Contracting of Inputs: A Farm-Level Analysis

Cover Image Ashok K. Mishra, Janet E. Perry

Elsewhere No. (0010), November 1999

Forward contracting of factors of production is a growing activity between the suppliers of inputs and the farmers who use them. Forward contracting of inputs also guarantees farmers an assured supply of inputs at a specified price. Farmers choose to forward contract their factors of production for two basic reasons; first, getting price discounts and locking in a certain price for the inputs. This reduces the input price risk. Second, contracting of inputs ensures quality and timeliness of input deliveries.

Keywords: Contracting, forward contracting, inputs, factors of production, risk management, input prices, farm size, Economic Research Service, ERS, USDA, U.S. Department of Agriculture

Get this document in Adobe Acrobat PDF format.

Updated date: November 1999

For more information, contact: webadmin@ers.usda.gov

Web administration: webadmin@ers.usda.gov