Investigating farmers' preferences for rapeseed sales contracts in Iran

Mehrabi, A.; Mohamadi-Nejad, A.; Ghorbani, M.; Zeraatkish, S. Y.; Dehyouri, S.

doi:10.1590/1519-6984.299694

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Original Article • Braz. J. Biol. 85 • 2025 • https://doi.org/10.1590/1519-6984.299694 linkcopy

Investigating farmers' preferences for rapeseed sales contracts in Iran

Investigando as preferências dos agricultores em contratos de venda de colza no Irã

Authorship SCIMAGO INSTITUTIONS RANKINGS

Contract farming has gained popularity in recent years. Understanding farmers' preferences for contracts can help make contracts more sustainable and profitable. Therefore, the present study aimed to investigate farmers' preferences for rapeseed sales contracts in Iran. Farmers' preferences were examined using a choice experiment and conditional logit models. The statistical population was rapeseed farmers in Mazandaran province and the required data were obtained through questionnaire completion. The results showed that the attributes of input supply, the existence of incentives, pricing method, provision of technical and consulting services, and price all having a positive and significant effect on farmers' preference for choosing a farming contract. However, the attribute of contract duration has a negative and significant effect on farmers' preference for choosing farming contracts. Aligning contract conditions with farmers' preferences helps design more effective and equitable contractual arrangements, maximize farmers' profits, and ultimately contribute to agricultural and rural development.

Keywords:
choice experiment; conditional logit; contract farming; Farmers' preferences; rapeseed farmers

Attributes	Alternative 1	Alternative 2	Current situation
Input supply	No	Yes	No contract (Neither alternatives 1 or 2)
Pricing method	Variable based on the current price at the time of product delivery	Variable based on the current price at the time of product delivery
Existence of option	Yes	No
Contract duration	one-year	one-year
Existence of incentives in the contract	Yes	Yes
Provision of technical and consulting services	No	Yes
Price	420000 Rials	385000 Rials	350000 Rials (Guaranteed price)

	Conditional Logit Model			Conditional Logit Model with Interaction Effects
Attributes	Coefficients	SE	Z	Coefficients	SE	Z
Input supply	1.46435***	0.16320	8.97	0.73652*	0.34772	12.2
Pricing method	0.59655^***	0.15815	3.77	0.63452^***	0.16024	3.96
Existence of options	-0.09768	0.17984	-0.54	-0.10436	0.18103	-0.58
Contract duration	-0.71799^***	0.17627	-4.07	-0.73405^***	0.17743	-4.14
Existence of incentives	0.87099^***	0.19354	4.50	0.88645^***	0.19507	4.54
Provision of technical and consulting services	0.54731**	0.16687	3.28	0.56872^**	0.16849	3.38
Price	0.00032^***	0.00007	4.59	0.00039^***	0.00007	4.58
willingness to receive education * Input supply	0.17388	0.07292	2.38	-	-	-
Land ownership * Input supply	0.42585	0.19257	3.16	-	-	-
agricultural experience* pricing method	-0.03404	0.01531	-2.22	-	-	-
Age* contract duration	0.02293	0.01304	1.76	-	-	-
log-likelihood	-571.7666			-623.91549
LR chi2(7)	120.99			237.32
Prob > chi2	0.000			0.000
Pseudo R²	0.1930			0.251

Alternative	Chi-square	P-Value	Result
Alternative 1	18.76	0.310	The null hypothesis is accepted.
Alternative 2	11.34	0.254	The null hypothesis is accepted.
Current situation	5.90	0.098	The null hypothesis is accepted.

Attributes	Marginal rate of substitution with interaction effects	Marginal rate of substitution Without interaction effects
Input supply	1888.51282***	4576.09375^***
pricing method	1626.97435^***	1864.21875^***
contract duration	1882.17948^***	2243.71875^***
Existence of incentives in the contract	2272.94871^***	2721.84375^***
Provision of technical and consulting services	1458.25641^***	1710.34374^***

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[1] Significance levels:

[TFN1] ^*
p < 0.1.

[TFN2] ^**
p < 0.05.

[TFN3] ^***
p < 0.01.

[5] SE = Standard error; Z-score = Indicates the statistical significance of the estimated coefficient for each explanatory variable.