Exploring preferences for contractual terms in a scenario of ecological transition for the agri-food sector: a latent class approach

Governance mechanisms along the agri-food supply chains are increasingly important in a 17 scenario of ecological transition. Under the conceptual and analytical lens of the Transaction 18 Cost Economics, we explored farmers’ preferences towards a variety of clauses usually 19 adopted in production contracts. To this purpose, a discrete choice experiment among 190 20 durum wheat producers in Italy was conducted. Results from a latent class model showed that 21 that producers were mainly interested in fixed prices formula and to join shared rules of 22 production but revealed little or no interest for compelling sustainable cultivation techniques 23 and the provision of technical assistance. However, these preferences are heterogeneous 24 across farmers and vary depending on their level of education and previous use of contractual 25 arrangements, with relevant implications for contract design and management.