Exploring farmers’ intention to adopt marketing contracts: empirical insights using the TOE framework

Abstract

Abstract The European agricultural sector faces considerable exposure to price risk, which poses a threat to farmers’ income and long-term resilience. Marketing contracts have emerged as a potential risk mitigation strategy by enabling farmers to fix the selling price of their output. Despite their benefits, the adoption of marketing contracts among European farmers remains limited. To investigate the factors influencing farmers’ participation in MCs, this study applies the Technology-Organization-Environment (TOE) framework, marking its first application in this field of research. By analyzing data from an online survey of 84 Italian arable crop producers using a partial least squares structural equation model, this study investigates the factors influencing farmers’ participation in marketing contracts. The results demonstrate the effectiveness of the TOE model in examining farmers’ intentions to adopt marketing contracts. Specifically, the perceived usefulness of marketing contracts, their compatibility with farm characteristics, the positive attitude of farm owners towards these tools, and normative pressure from buyers all exhibit positive associations with farmers’ intention to adopt marketing contracts. These findings offer valuable insights for the development of targeted strategies aimed at promoting the widespread use of marketing contracts among European farmers.

Keywords

• Technology-organization-environment framework
• Price risk management
• Marketing contracts
• Italian arable crop sector