Hart on outcome-based pricing and farmers' risk

January 8, 2020

Dr. Chad HartChad Hart, associate professor, was interviewed for a Jan. 8 AgriPulse story, "Outcome-based pricing aims to reduce farmers' financial risk."

“I think it can work,” said Chad Hart, an extension economist at Iowa State University. “There’s a potential market here ... I don’t think everybody is going to flip to this, but I think it is going to be one of those menus of choices.”

Hart noted younger and more tech-savvy farmers may buy into this model more quickly than more traditional farmers, as cash flow tends to be the utmost concern as they look to reduce input costs.

He predicted it will take a few years for interest in the model to build up.

News Type: