[1] Ren Xuejie, Zhao Lindu,. Contract stability and default risk control of pig farmingin the company and farmer mode [J]. Journal of Southeast University (English Edition), 2022, 38 (1): 97-102. [doi:10.3969/j.issn.1003-7985.2022.01.015]

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Contract stability and default risk control of pig farmingin the company and farmer mode()

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Journal of Southeast University (English Edition)[ISSN:1003-7985/CN:32-1325/N]

Volumn:

38

Issue:

2022 1

Page:

97-102

Research Field:

Economy and Management

Publishing date:

2022-03-20

Info

Title:

Contract stability and default risk control of pig farmingin the company and farmer mode

Author(s):

Ren Xuejie;  Zhao Lindu

School of Economics and Management, Southeast University, Nanjing 211189, China

Keywords:

contract farming;  contract stability;  risk-sharing;  profit-sharing

PACS:

F273

DOI:

10.3969/j.issn.1003-7985.2022.01.015

Abstract:

To investigate contract stability in the company and farmer mode and to explore control measures of market price risk and production risk, a multiperiod game model was established in this study. Considering multiple periods and losses caused by deaths simultaneously, a stable contract price interval depending on the breaching penalty, transaction cost, spot market price, and quantity of pigs was observed. Results indicate that the higher the penalty and transaction cost savings, the better the stability of the contract; the contract price should be negotiated around the weighted average of the spot market price. When the production risk is higher, hog insurance can significantly improve the contract stability; when the market price is lower, hog price index insurance improves the contract stability by guaranteeing the company income; when the market price is higher, the profit-returning mechanism improves the stability by protecting farmers’ incomes. Applying three measures simultaneously results in the best stability. Examples based on data from 2014 to 2018 in Henan Province, China, were given.

References:

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Memo

Memo:

Biographies: Ren Xuejie(1991—), female, Ph.D. candidate; Zhao Lindu(corresponding author), male, doctor, professor, ldzhao@seu.edu.cn.
Foundation items: The National Natural Science Foundation of China(No. 72071039), Major Science and Technology Projects in Yunnan Province(No. 202102AC080003).
Citation: Ren Xuejie, Zhao Lindu. Contract stability and default risk control of pig farming in the company and farmer mode[J].Journal of Southeast University(English Edition), 2022, 38(1):97-102.DOI:10.3969/j.issn.1003-7985.2022.01.015.

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