Production Contracts in the Hog Industry: Risk, Return and Financing Implications
Roberts, Bruce Wayne
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Permalink
https://hdl.handle.net/2142/83046
Description
Title
Production Contracts in the Hog Industry: Risk, Return and Financing Implications
Author(s)
Roberts, Bruce Wayne
Issue Date
1999
Doctoral Committee Chair(s)
Peter Barry
Department of Study
Agricultural Economics
Discipline
Agricultural Economics
Degree Granting Institution
University of Illinois at Urbana-Champaign
Degree Name
Ph.D.
Degree Level
Dissertation
Keyword(s)
Economics, Finance
Language
eng
Abstract
Research results indicate that growers wishing to enter the hog finishing sector, or expand an existing operation, will be able to do so with relatively less equity than would be possible without a production contract. Alternatively, capital constrained growers can invest in relatively larger facilities with a production contract than as a non-contract grower. Risk averse growers are able to finish hogs under contract profitably with less risk than is possible without a contract.
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