Leopold Center for Sustainable Agriculture

Completed Competitive Grant

Using contracts to expand produce market opportunities

Project ID: 2005-M18

Abstract

Contracts and market agreements could help local food producers manage the risk of increasing production while guaranteeing supplies for potential purchasers.

Key Question: How can the risk associated with expanding production of produce to meet demands of bigger or new markets be managed or shared?

Findings: A risk management strategy used in commodity and large-scale produce production is marketing agreements. Establishing marketing agreements provides a guaranteed market and pricing structure that allows for more accurate pre-season financial and production planning.

Lead investigator: Jason D. Ellis, University of Nebraska-Lincoln

Year of grant completion: 2007

This competitive grant project was part of the Leopold Center's Marketing Initiative.

Topics: Market research and feasibility studies, Supply networks