Contracts, Markets, and Prices: Organizing the Production and Use of Agricultural Commodities—Contracts are now the primary method of handling sales of many commodities, including milk, hogs, broilers, and several major crops. Contracting can reduce producers' income risks from price and production variability. |
Agricultural Contracting: Trading Autonomy for Risk Reduction—Farm production is shifting from smaller to larger family farms and from spot (or cash) markets to contracts. Expanded use of contracts supports the shift to larger farms by reducing financial risks for farm operators, but at a loss of managerial control and reduced autonomy. |
