Using monthly data, we find evidence of both short- and long-run asymmetry of price transmission from peanut to peanut butter prices. This suggests that the asymmetry is more likely a result of imperfect competition than of competitive profit maximizing inventory management. Effects of producer...

We analyze two types of crop marketing contracts between agricultural producers and processors, delivery-at-harvest and an "option-to-purchase" that emerged in US peanut market after the 2002 Farm Act. This contract structure is interpreted as a marketing strategy trying to fill the gap left by...