Intricate Agribusiness in Potato Contract Farming in Gujarat: A Review

2021 ◽  
pp. 189-198
Keyword(s):  
Transaction Costs ◽  
Contract Farming ◽  
Usage Rate ◽  
The Future ◽  
Processing Organizations ◽  
Potato Consumption ◽  
Structural Innovation

Gujarat ranks top in potato productivity and a hub of many processing organizations. Due to the globally changing potato consumption scenario, a new structural innovation was created between producers and processors named contract farming. It is a win-win situation for both the producers and processors. Potato contract farming in Gujarat is very special as many contract farming models were established under the agribusiness domain, of which some models were informal, and some were formal, but it helped to safeguard the interest of all the stakeholders. Lack of trust, transaction costs, liquidity issues, and present business scenarios like COVID-19 like situations create a challenge to this structure. A sound strategy like farm harvest branding, basket marketing, targeting an untapped market, and increase usage rate will create a space for processing varieties and impel contract farming in the future.

The Insight and the Legacy of the Theory of Share Tenancy

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Douglas W. Allen ◽  
Dean Lueck
Keyword(s):  
Property Rights ◽  
Transaction Costs ◽  
Contract Design ◽  
Coase Theorem ◽  
The Future ◽  
Economics Of Contracts ◽  
Share Tenancy ◽  
Phd Thesis

Abstract The Theory of Share Tenancy by Steven Cheung, first published as a PhD thesis 50 years ago, was an important watershed study on the economics of contracts. It contained the first formal demonstration of the Coase Theorem, linked the concepts of property rights and transaction costs, laid early foundations for the future economics of contracts, and can even lay claim to originating the idea of a risk/incentive tradeoff in contract design. This essay examines Cheung's key contributions in Share Tenancy, and considers reasons for its somewhat limited legacy outside of China.

scholarly journals Effect of contract farming on the U.S. crop farmers’ average return

2013 ◽  
Vol 59 (No. 5) ◽  
pp. 195-201
Author(s):  
W.-Y. Hu
Keyword(s):  
Propensity Score ◽  
Transaction Costs ◽  
Logit Model ◽  
Decision Problem ◽  
Contract Farming ◽  
Department Of Agriculture ◽  
Average Return ◽  
Positive Effect ◽  
Matching Estimation ◽  
The U.S

In the literature of contract farming, most of the studies focus on the functions of risk managements and reducing transaction costs. Only a few study the effect of contract farming on the productivity efficiency or profitability. Literature in the crop sector is especially lacking. In this paper, we use a unique farm-level dataset (Agricultural Resource Management Survey from the U.S. Department of Agriculture) to examine the effect of contract farming on the farmers’ average return for the corn, soybean and wheat producers. The matching estimation is used in the nature to compare the farmers’ average return with or without participating contract farming. We first run a logit model to calculate the propensity score from the farmers’ contracting decision problem. Then, use the propensity score to match farmers using the contracts and not using the contracts and compare their average returns. The empirical results show that contract farming has a positive effect on the corn and soybean producers’ average return and insignificant effect on wheat producers’.    

scholarly journals Too expensive to meter: the influence of transaction costs in transportation and communication

2008 ◽  
Vol 366 (1872) ◽  
pp. 2033-2046 ◽  
Author(s):  
David Levinson ◽  
Andrew Odlyzko
Keyword(s):  
Economic Theory ◽  
Transaction Costs ◽  
Time Of Day ◽  
Fine Scale ◽  
Ancient History ◽  
The Future ◽  
Recent Developments ◽  
New Construction ◽  
Public Opposition

Technology appears to be making fine-scale charging (as in tolls on roads that depend on time of day or even on current and anticipated levels of congestion) increasingly feasible. Such charging also appears to be increasingly desirable, as traffic on roads continues to grow and costs and public opposition limit new construction. Similar incentives towards fine-scale charging also appear to be operating in communications and other areas, such as electricity usage. Standard economic theory supports such measures and technology is being developed and deployed to implement them. But their spread is not very rapid and their prospects for the future are uncertain. This paper presents a collection of sketches, ranging from ancient history to very recent developments, that illustrate the costs that charging imposes. Some of those costs are explicit (in terms of the monetary costs to users and the costs of implementing the charging mechanisms). Others are implicit, such as the time or the mental processing costs of users. These argue that the case for fine-scale charging is not unambiguous and that in many cases such charging may lead to undesirable outcomes.

scholarly journals The effect of a SECoS in crude palm oil forecasting to improve business intelligence

2020 ◽  
Vol 9 (4) ◽  
pp. 1604-1611 ◽  
Author(s):  
Al-Khowarizmi Al-Khowarizmi ◽  
Ilham Ramadhan Nasution ◽  
Muharman Lubis ◽  
Arif Ridho Lubis
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Transaction Costs ◽  
Palm Oil ◽  
Business Intelligence ◽  
Business Processes ◽  
Crude Palm Oil ◽  
The Future ◽  
Artificial Neural ◽  
Artificial Neural Network Ann

Crude palm oil is a crop that has a harvest period of ± 2 weeks and is in dire need of dissemination of information using e-commerce in order to be able to predict the price of the yield of companies or individual gardens within the next 2 weeks in order to improve studies on business intelligence. The disadvantage of not implementing e-commerce is certainly detrimental to the garden owner because they have to go through an agent so prices are set based on the agent. So with the application of e-commerce, buyers of crude palm oil can predict prices in conducting business processes to the future. So the need to forecasting the price of crude palm oil heads in order to improve the application of business intelligence using the evolution-based artificial neural network (ANN) method which in this paper is tested with SECoS get a MAPE value of 0.035% and by applying business intelligence can protect transaction costs by 33.3%.

The Selection of the Best Deal for Sweet Potato Contract Farming under Directing of Multinomial Logit Model: An Application of the Theory of Planned Behavior

2021 ◽  
Author(s):  
Ke-Fen Chang ◽  
Pei-Ing Wu ◽  
Je-Liang Liou ◽  
Shou-Lin Yang
Keyword(s):  
Theory Of Planned Behavior ◽  
Sweet Potato ◽  
Planned Behavior ◽  
Behavioral Intention ◽  
Perceived Behavioral Control ◽  
Contract Farming ◽  
The Future ◽  
Contract Type ◽  
The Impact ◽  
Selection Of

The purposes of this study are based upon the theory of planned behavior (TPB) to examine the impact of past experiences of contract farming on selecting a specific type of contract farming in the future and then compare different psychological factors in the TPB for different potential contract farmer statuses. These statuses include homesteaders, farmers from cooperative farms, farmers from production and sales teams, professional farmers, and brokers. The impact of factors in the TPB for a particular contract type on potential contract farmers is further to compute. To this end, data are collected in three major sweet potato production areas in Taiwan. The results show that the farmers’ past contract farming experience does not influence the selection of the contract in the future. As for the selection of contract type, strengthening the perception and motivating the behavioral intention of contract farming for cooperative farms will increase the probability of selecting an unclassified sweet potato size contract. On the other hand, enhancing perceived behavioral control factors and behavioral intention factors for professional farmers and brokers is apt to have a relatively high probability of selecting those types involving the highest amount or the best price to obtain the best deal.

scholarly journals Contract Farming: Linking Farmers to Markets

2016 ◽  
Vol 6 (1) ◽  
pp. 27
Author(s):  
Arief Daryanto
Keyword(s):  
Transaction Costs ◽  
Management Practices ◽  
Smallholder Farmers ◽  
Family Members ◽  
Contract Farming ◽  
Employment Opportunities ◽  
New Markets ◽  
Contract Performance ◽  
Managing Risk ◽  
Improved Technology

Contract farrning in Indonesia is a growing phenomenon. This paper examines the evolution of contract farming, and explores the incentives to engage in contract farming, preferred contract forms and contract performance from the perspective of both lndonesian farmers and contracting firms. Contract farming is characterized by a contract between a farmer and a firm that will process and/or market the farmer's crop. It has been a component of some of the most successful income generating programs for smallholder farmers; it has been a component of various schemes involving agribusiness firms. Smallholders may enter contracts to reduce transaction costs of accessing new markets, borrowing, managing risk, acquiring in formation or increasing employment opportunities. The success of contracts reflects both the contracting environment and management practices. Benefits from contracting accrue to smallholders from improved access to markets, improved technology, better management of risk and opportunities for employment of family members.

scholarly journals Uncertainty in Estimates, Incentives, and Emission Reductions in REDD+ Projects

2018 ◽  
Vol 15 (7) ◽  
pp. 1544 ◽  
Author(s):  
Jichuan Sheng ◽  
Weihai Zhou ◽  
Alex de Sherbinin
Keyword(s):  
Transaction Costs ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Emission Reductions ◽  
Simulation Research ◽  
Critical Step ◽  
Policy Tool ◽  
The Future ◽  
Monitoring And Measurement ◽  
Compensation Payments

The accurate monitoring and measurement of emission reductions is a critical step in Reducing Emissions from Deforestation and Degradation (REDD+). However, the existence of uncertainty in emission reduction estimates affects the performance of REDD+ projects. We assert that incentive could be a valuable policy tool for reducing monitoring errors and transaction costs. Using Stackelberg models and simulation research, this paper examines the effects of uncertainty and incentive on performance and stakeholder benefits of REDD+ projects. Finally, the uncertainties in REDD+ projects are further discussed, and equilibrium errors, emission reductions, and stakeholder benefits in different scenarios are compared. The results show that errors do affect the measured value of carbon emissions and compensation payments. However, incentive for investors can reduce monitoring errors and improve the performance of REDD+ projects. Therefore, in the future, incentive should be provided to investors rather than landholders.

scholarly journals Sustainable Partnerships in Cassava Production and Industrial Sector: A Heckprobit Analysis of Indonesian Farmers

2021 ◽  
Vol 5 (2) ◽  
pp. 159
Author(s):  
Muhammad Ibnu
Keyword(s):  
Transaction Costs ◽  
Random Sampling ◽  
Quantitative Data ◽  
Industrial Sector ◽  
Commodity Chains ◽  
Systematic Random Sampling ◽  
The Future ◽  
Working Together ◽  
Cassava Production

<p>Partnerships are instruments to overcome the inability of individual smallholders to solve the development problems associated with agricultural sectors and commodity chains. While vigorously advocated, a sustainable partnership is rare in the Indonesian cassava production and industrial sector. Knowledge of partnership from the sector is also limited. This study explores the reasons for previous partnerships in the cassava production and industrial sector discontinued and examine what factors determine farmers' willingness to partake in partnerships. The study administered a systematic random sampling to survey for 140 cassava farmers in Central and East Lampung Districts from November 2018 to April 2019. Farmers were interviewed and given a structural questionnaire. The quantitative data were analyzed by heckprobit regression. The results of the study show that the partnership ends because the two parties do not have the same vision for working together. Various variables (barriers to selling to non-industries, low prices, inaccurate weighing scales, high transaction costs, and discounted prices.) indicate the complexity of farmers' considerations for joining the partnership. This research impliesthat it is difficult to create partnerships in the future if farmers and industry have different visions and priorities.</p>

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