Farmer Preferences Regarding Durum Wheat Contracts in Italy: a Discrete Choice Experiment

PurposeThis study aims to investigate farmer preferences regarding sales contracts for durum wheat in Italy.Design/methodology/approachThe authors consider that contracts are formed by an organisational entity that is in charge of transferring decision and property rights based on reductions in transaction costs. The empirical analysis presents a discrete choice experiment with three distinct models that was performed by a survey of 160 wheat farmers in southern Italy.FindingsThe results show that contractual terms affect the probability of both a contract being signed and allocating decision rights due to their effects on price, technology and quality.Practical implicationsThis study provides some insights on which contractual attributes could support the wider use of contracts along the durum wheat supply chain in Italy.Originality/valueThe paper reveals that contracts are relevant not only to the coordination of agri-food chains because of price stabilisation but also due to their impacts on technology and quality strategies.