Agricultural Contracts: What Should I Consider?. Why is contract use increasing?. Marketing's 4 P’s Product Place Price Promotion (Channeling). New Dynamics . New Relationship between Buyer and Seller Cooperative rather than adversarial Loss of managerial control?
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Marketing's 4 P’s
Sources: Kunkel and Larison, Hamilton
A few things to consider in terms of risk management ...
Where are cost estimates available?
Don’t forget additional managerial time!
Are inputs more expensive than normal?
Who provides feed? Balanced rations?
Who sets rations?
How is death loss handled?
How are repairs made?
Liability insurance required?
What are the depreciation costs?
Is there a set quantity requirement?
Penalty if the quantity requirement is not met?
Does the grower find supplies if short?
Is the grower responsible for unforeseen events?
Can location and quantity be adjusted for bad planting weather?