June 2026: Presentation of Prof. Kopp at the Italian Association of Agricultural and Applied Economics Conference in Rome
On 11 June, Prof. Kopp presented his joint work with Ashok K. Mishra (Arizona State University) and Alwin Dsouza (New Mexico State University) entitled "Reducing Negative Effects of Risk Aversion on Farming Outcomes: Evidence for Systematic External Selection into Profitable Contracts” at the 15th Italian Association of Agricultural and Applied Economics Conference in Rome.
This study examines the interplay between risk aversion and contract farming in developing and emerging economies, focusing on 660 representative okra farmers in Karnataka, India. Utilising an instrumental variables approach, the empirical analysis confirms that risk-averse farmers are over-proportionately selected into production contracts, which are 46.3% more profitable than marketing contracts. The systemic selection benefits vulnerable, risk-averse farmers by grantingthem privileged access to the most advantageous contract farming arrangements.
The results of the study, relevant for the development discourse, emphasise the benefits of production contracting for poverty reduction, while highlighting the monopsonistic tendencies of contracting firms in controlling the selection of farmers.
