Investigating factors affecting on conclusion and implementation in agricultural contracts (approach switching regression).

Agriculture has always been a hazardous activity, and today, especially in developing countries, conclusion of contracts has been very effective in increasing incentive for farmers to produce. But point in most contracts is that most farmers are forced to circumvent the contract or assign the product to other groups in order to achieve faster sales of product. In this study, we tried to investigating factors affecting on conclusion and implementation in agricultural contracts as well as redistribution of income between different contracting groups among tomato farmers in Kermanshah province in 1397. The sample was surveyed by Cochran formula in 150 farmers in Kermanshah plain. Questionnaires were completed from each farmer by face-to-face interviews. Regarding the division of variables based on three types of written, oral and non-contractual agreements, multinomial regression model and regression switching approach was used to measure redirected earnings among different groups of contractors. The results of the study, apart from the various effects of variables applied on the surveyed groups, showed that the farmers group with a written and uncontracted contract receive 49 and 46 percent of their income by handing them over to the other group. Also, farmers with oral contracts without a contract also receive 42% and 52% of the income from switche their product.