Increased reliance on contracting is one important feature of continuous structural change in
Marketing and production contracts covered 39 percent of the value of
The study notes that contracting is closely tied to farm size. Large farms (more than $1 million in sales) are more likely to contract than small farms (less than $250,000 in sales). Although use of both production and marketing contracts has grown over time, growth is more rapid for production contracts, especially for livestock operations.
To see the entire report, go to: http://www.ers.usda.gov/Publications/EIB9/
USDA’s Economic Research Service