Farmers turn to marketing and production contracts when they perceive the efficacy of spot markets to be inadequate in handling their risks,and processors turn to contracts as a way to encourage farmers to produce specific products at desired times.

Question

Quizplus · Accepted Answer

Farmers do turn to contracts when they feel spot markets are insufficient for their risk management, and processors use contracts to encourage farmers to produce specific products.

Farmers Turn to Marketing and Production Contracts When They Perceive