Agri-environmental schemes provide payments for farmers in return for environmental services. Implementation induces transaction costs (TCs). Borne by farmers (private TCs), their amount may inhibit participation. Research shows substantial variances in private TCs within single schemes, which...

This paper uses a fundamental Q model of investment to consider the role played by financing frictions in agricultural investment decisions, controlling econometrically for censoring, heterogeneity and errors-in-variables. Our findings suggest that farmer's investment decisions are not driven by...

Impact of Off-farm Income on Farm Efficiency in Slovenia

A central problem in estimating per unit costs of production originates from the fact that most farms produce multiple outputs and standard farm-accounting data are only available at the whole-farm level. The seemingly unrelated regression (SUR) approach is used to estimate per unit production...

Replaced with revised version of paper 09/14/11.

While the single- output Constant Difference of Elasticities (CDE) cost function has been applied several times, its profit counterpart called “the Constant Difference of Elasticities of Transformation” (CDET) profit frontier has not yet been applied econometrically. It is an indirect,...

A conceptual marketing-finance framework is proposed which links channel contracting in agriculture and the use of financial facilitating services (e.g., financial derivatives) to (shareholder) value creation. The framework complements existing literature by explicitly including channel contract...