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This paper examines marketing choices by southwestern cotton producers in 2010. Producer marketing behavior was modeled in a multinomial logit framework as a discrete choice among forward contracting with a merchant; postharvest cash contracting with a merchant; contracting with a merchant pool; or contracting with a cooperative pool. The most important determinants of cotton cash marketing choices were prior participation in cooperative pools, beliefs about the value of preharvest pricing, beliefs about the performance of merchant pools, willingness to accept lower prices to reduce risk, and several socio-economic variables.

Keywords: adoption ; cotton ; marketing ; hedging

Editor(s): Epperson, James

Escalante, Cesar

Subject(s): Crop Production/Industries

Issue Date: 2012-2012-2012

Publication Type: Journal Article

ISSN: 0738-8950

Language: English Published in: Journal of Agribusiness, Volume 30, Number 2 Page range: 173-184

Record appears in: Agricultural Economics Association of Georgia > Journal of Agribusiness

Autor: Pace, Jason D. ; Robinson, John R.C.


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