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Producer Preferences for Contracts on a Risky Bioenergy Crop

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  • Krah, Kwabena
  • Petrolia, Daniel
  • Coble, Keith
  • Williams, Angelica
  • Harri, Ardian

Abstract

This study employs a stated choice experiment survey to identify producer preferences for contracts to produce Giant Miscanthus. Preliminary results indicate that price offered per ton of harvested Miscanthus, yield insurance availability, and biorefinery harvest have significant positive effects on the probability of a producer accepting a contract to produce Giant Miscahthus. The results show that risk-neutral farmers as more willing to accept contracts relative to risk-loving farmers, ceteris paribus. Farmers who perceive yield risk of Miscathus to be greater than their current crop are less likely to accept Giant Miscanthus contracts.

Suggested Citation

  • Krah, Kwabena & Petrolia, Daniel & Coble, Keith & Williams, Angelica & Harri, Ardian, 2015. "Producer Preferences for Contracts on a Risky Bioenergy Crop," 2015 Annual Meeting, January 31-February 3, 2015, Atlanta, Georgia 196994, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea15:196994
    DOI: 10.22004/ag.econ.196994
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    Cited by:

    1. Sant'Anna, Ana Claudia & Bergtold, Jason & Shanoyan, Aleksan & Caldas, Marcellus & Granco, Gabriel, 2021. "Deal or No Deal? Analysis of Bioenergy Feedstock Contract Choice with Multiple Opt-out Options and Contract Attribute Substitutability," 2021 Conference, August 17-31, 2021, Virtual 315289, International Association of Agricultural Economists.
    2. Krah, Kwabena & Michelson, Hope & Perge, Emilie & Jindal, Rohit, 2019. "Constraints to adopting soil fertility management practices in Malawi: A choice experiment approach," World Development, Elsevier, vol. 124(C), pages 1-1.
    3. Lapierre, Margaux & Le Velly, Gwenolé & Bougherara, Douadia & Préget, Raphaële & Sauquet, Alexandre, 2023. "Designing agri-environmental schemes to cope with uncertainty," Ecological Economics, Elsevier, vol. 203(C).
    4. Rosburg, Alicia & Menapace, Luisa, 2018. "Factors Influencing Corn Fungicide Treatment Decisions," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 43(2), May.
    5. Thakur, Tiesta & Hurley, Terrance M., 2020. "Will farmers grow weeds for Monarchs?," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304411, Agricultural and Applied Economics Association.
    6. Clark Lundberg & Tristan Skolrud & Bahram Adrangi & Arjun Chatrath, 2021. "Oil Price Pass through to Agricultural Commodities†," American Journal of Agricultural Economics, John Wiley & Sons, vol. 103(2), pages 721-742, March.
    7. repec:oup:apecpp:v:40:y:2018:i:3:p:502-521. is not listed on IDEAS
    8. Sant’Anna, Ana Claudia & Bergtold, Jason S. & Shanoyan, Aleksan & Caldas, Marcellus M. & Granco, Gabriel, 2022. "Biofuel feedstock contract attributes, substitutability and tradeoffs in sugarcane production for ethanol in the Brazilian Cerrado: A stated choice approach," Renewable Energy, Elsevier, vol. 185(C), pages 665-679.

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    Keywords

    Resource /Energy Economics and Policy; Risk and Uncertainty;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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