Contract and Exit Decisions in Finisher Hog Production Dong, Fengxia Hennessy, David Jensen, Helen
dc.contributor.department Economics
dc.contributor.department Center for Agricultural and Rural Development 2018-02-17T23:57:47.000 2020-06-30T02:05:39Z 2020-06-30T02:05:39Z 2010-04-01
dc.description.abstract <p>Finisher hog production in North America has shifted toward larger units and contract format since 1990. Exit among independent growers has been high. We develop a model showing that growers with any of three efficiency attributes (lower innate hazard of exit, variable costs, or contract adoption costs) are more likely to contract, produce more, and expend more on business protection. Using 2004 Agricultural Resource Management Survey data, a recursive bivariate probit model confirms that contracting producers are less likely to exit. Specialization increases the probability of contracting. Education, nonfarm income, and older production facilities are significant in increasing expected exit.</p>
dc.description.comments <p>This is a working paper of an article from <em>American Journal of Agricultural Economics </em>92 (2010): 667, doi: <a href="" target="_blank">10.1093/ajae/aap041</a>.</p>
dc.identifier archive/
dc.identifier.articleid 1243
dc.identifier.contextkey 9296124
dc.identifier.s3bucket isulib-bepress-aws-west
dc.identifier.submissionpath econ_las_pubs/242
dc.subject.disciplines Agricultural and Resource Economics
dc.subject.disciplines Agricultural Economics
dc.subject.disciplines Labor Economics
dc.subject.disciplines Organizational Behavior and Theory
dc.subject.keywords agricultural industrialization
dc.subject.keywords Agricultural Resource Management Survey (ARMS)
dc.subject.keywords farm exit
dc.subject.keywords hog production
dc.subject.keywords production contracts
dc.subject.keywords recursive bivariate probit
dc.title Contract and Exit Decisions in Finisher Hog Production
dc.type article
dc.type.genre article
dspace.entity.type Publication
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