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RESEARCH PRODUCT

NON-PRICE IN CENTIVES IN FARMING CONTRACTS. EVIDENCE OF CONTRACTUAL RELATIONS BETWEEN AGRICULTURAL PRODUCERS’ GROUPS AND THEIR FIRST BUYERS IN POLAND

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The primary purpose of the paper is to identify non-price incentives provided by farming contracts. They aim at motivating agents to conduct their actions according to contractors’ interests. Therefore their application of these inducements might minimise the issue of moral hazard during its validity, i.e. as the production progresses. The author carried out her empirical research based on the survey among producers’ groups operating in the poultry market, while the particular emphasis was placed on farming contracts signed in 2014. The obtained results allow for identification of non-price incentives which are supposed to help monitor and tackle the problem of moral hazard with hidden action on the side of agents/ groups of poultry producers. As a conclusion, five types of incentives were determined.