Agriculture Reference
In-Depth Information
of interesting issues in the economics of contracts and organization could be examined
in agriculture. How important are share-fixed fee combination contracts such as those in
franchising? How important is reputation in enforcing contracts? What types of transaction
cost problems arise from dynamic changes in contract terms and renegotiation? Perhaps
one of the most pressing problems is what best explains the recent and dramatic increase in
the use of production contracts. One advantage of having agricultural economists interested
in organization is that the demand for data would increase. Data collection is crucial, but
currently the census bureaus in Canada and United States do not gather much organizational
and contract data. This no doubt reflects the dominance of the neoclassical economists in
agricultural circles. Finally, it should be noted that interest in organizational issues would
mean a return to the historic roots of agricultural economics, back to the ideas of those who
first pondered the nature of the farm.
