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A Risk Programming Approach To Designing Contracts To Reduce Nitrate Leaching

Author

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  • Chu, Mei-Chin
  • Swinton, Scott M.
  • Batie, Sandra S.

Abstract

As contractual agriculture expands, contract design offers a non-regulatory opportunity to reduce non-point source pollution. A risk programming analysis of seed corn contract designs illustrates a tractable empirical principal-agent model, and shows that grower risk preferences affect contract acceptability and efficiency at reducing nitrate leaching.

Suggested Citation

  • Chu, Mei-Chin & Swinton, Scott M. & Batie, Sandra S., 1997. "A Risk Programming Approach To Designing Contracts To Reduce Nitrate Leaching," Staff Paper Series 11594, Michigan State University, Department of Agricultural, Food, and Resource Economics.
    • Handle: RePEc:ags:midasp:11594
    DOI: 10.22004/ag.econ.11594
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    References listed on IDEAS

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    1. Chu, Mei-Chin & Swinton, Scott M. & Batie, Sandra S. & Dobbins, Craig L., 1996. "Agricultural Production Contracts To Reduce Nitrate Leaching: A Whole-Farm Analysis," Staff Paper Series 11806, Michigan State University, Department of Agricultural, Food, and Resource Economics.
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    Cited by:

    1. Apland, Jeffrey & Grainger, Corbett & Strock, Jeffrey, 2004. "Modeling Agricultural Production Considering Water Quality and Risk," Staff Papers 14240, University of Minnesota, Department of Applied Economics.

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