TY  - JA
AU  - Lence,S.H.
TI  - Modeling the market and welfare effects of Mexico's “Agriculture by Contract” program
SN  - 0002-9092
PY  - 2016///
CY  - Ames, IA (USA)
PB  - Wiley
KW  - Contract farming
KW  - AGROVOC
KW  - Programmes
KW  - Markets
KW  - Prices
KW  - Welfare
KW  - Mexico
N1  - Peer review
N2  - “Agriculture by contract” (A × C) is the main Mexican government program aimed at mitigating price risks for agricultural producers in Mexico. A × C has unique features involving forward contracts and the provision of basis subsidies and subsidized exchange‐traded futures options for both producers and intermediaries. A simulation model is developed to analyze the market and welfare effects of A × C. When applied to corn, results show that A × C exerts substantial impacts and causes large transfers across sectors. Even if A × C reduced intermediaries' market power to the largest extent feasible, results indicate that it would still cause important losses in aggregate welfare
DO  - https://doi.org/10.1093/ajae/aav052
T2  - American Journal of Agricultural Economics
ER  -