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Transaction cost analysis of outsourcing farm administration by Belgian farmers

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  • T Vernimmen
  • W Verbeke
  • G van Huylenbroeck

Abstract

Modern farming is characterised by an increasing amount of regulation and hence of farm administration. This paper reports an empirical investigation of farmers' decisions regarding administrative tasks, and in particular the decision to outsource (part of) this administration. The theoretical framework is based on transaction cost economics, adapted and interpreted here to deal with services. The empirical analysis applies a probit model estimated using cross-section farm survey data. Results indicate significant differences in outsourcing related to characteristics such as farmers' age, farm size and institutional environment, as well as to factors such as the complexity, uncertainty and time requirements of the administration concerned. Copyright 2000, Oxford University Press.

Suggested Citation

  • T Vernimmen & W Verbeke & G van Huylenbroeck, 2000. "Transaction cost analysis of outsourcing farm administration by Belgian farmers," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 27(3), pages 325-345, September.
    • Handle: RePEc:oup:erevae:v:27:y:2000:i:3:p:325-345
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    Cited by:

    1. Xiuru Zhang & Lin Zhang & Tangzhe Nie, 2023. "Study on the Impact of Social Capital on Farmers’ Decision-Making Behavior of Adopting Trusteeship Services," Sustainability, MDPI, vol. 15(6), pages 1-16, March.
    2. Zezza, Alberto & Llambi, Luis, 2002. "Meso-Economic Filters Along the Policy Chain: Understanding the Links Between Policy Reforms and Rural Poverty in Latin America," World Development, Elsevier, vol. 30(11), pages 1865-1884, November.
    3. Krumalova, Veronika & Ratinger, Tomas, 2002. "Provision of Environmental Goods on Potentially Abandoned Land- The White Carpathians Protected Landscape Area," Discussion Papers 18885, CEESA: Central and Eastern European Sustainable Agriculture International Research Project.
    4. Johnson, Robin & Rossmiller, George Edward & Sandiford-Rossmiller, Frances, 2003. "Ag econ angst crisis revisited," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 1-14, June.
    5. Luigi Biagini & Federico Antonioli & Simone Severini, 2020. "The Role of the Common Agricultural Policy in Enhancing Farm Income: A Dynamic Panel Analysis Accounting for Farm Size in Italy," Journal of Agricultural Economics, Wiley Blackwell, vol. 71(3), pages 652-675, September.
    6. McCann, Laura & Colby, Bonnie & Easter, K. William & Kasterine, Alexander & Kuperan, K.V., 2005. "Transaction cost measurement for evaluating environmental policies," Ecological Economics, Elsevier, vol. 52(4), pages 527-542, March.
    7. Ratinger, Tomas & Krumalova, Veronika & Prazan, Jaroslav, 2004. "Institutional Options for the Conservation of Biodiversity: Evidence from the Czech Republic," Discussion Papers 18888, CEESA: Central and Eastern European Sustainable Agriculture International Research Project.
    8. Junying Lin & Songqing Jin & Hongdong Guo, 2023. "Do outsourcing services provided by agricultural cooperatives affect technical efficiency? Insights from tobacco farmers in China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 781-804, September.
    9. Geneviève Nguyen & Julien Brailly & François Purseigle, 2020. "Strategic outsourcing and precision agriculture: towards a silent reorganization of agricultural production in France ?," Post-Print hal-02942720, HAL.
    10. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    11. Xavier Gellynck & Bert Vermeire, 2009. "The Contribution of Regional Networks to Innovation and Challenges for Regional Policy," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 33(3), pages 719-737, September.
    12. Laura M.J. McCann, 2009. "Transaction Costs of Environmental Policies and Returns to Scale: The Case of Comprehensive Nutrient Management Plans," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 31(3), pages 561-573.
    13. Guo, Lili & Duan, Xiaoyu & Li, Houjian & Yang, Wanjiang & Ren, Yanjun & Guo, Yangli, 2022. "Does a higher minimum wage accelerate labour division in agricultural production? Evidence from the main rice-planting area in China," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 35(1), pages 2984-3010.
    14. Luigi Biagini & Simone Severini, 2021. "The role of Common Agricultural Policy (CAP) in enhancing and stabilising farm income: an analysis of income transfer efficiency and the Income Stabilisation Tool," Papers 2104.14188, arXiv.org.
    15. Robin Johnson & George E. Rossmiller & Frances Sandiford‐Rossmiller, 2003. "Ag econ angst crisis revisited," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 47(2), pages 261-274, June.

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