An investigation into the cost-sharing mechanism of order agriculture with consideration for green investment

The "processing company + farmer" model is studied for its wide - applicability, targeting high production costs and low farmer participation in green agriculture. Using game theory, we build a model to analyze cost - sharing mechanisms’ effects on green production levels and stakeholders’ profits. Model analysis shows that such a mechanism boosts both processing companies’ and farmers’ profits. Specifically, farmers’ profits rise by 20%, and companies’ by 8%. Higher agricultural product conversion rates amplify this profit growth. This indicates cost - sharing mechanisms’ economic benefits and their role in motivating farmers for green production. In summary, for the "processing company + farmer" model, a cost - sharing mechanism is crucial for profitability and promoting farmer - led green production, supporting sustainable agriculture.

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Publication Details

Journal
Cogent Food & Agriculture
Published
2025-04-07
DOI
https://doi.org/10.1080/23311932.2025.2485324
Primary Topic
Sustainable Supply Chain Management
Type
article
Field-Weighted Citation Impact
0.00

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article

An investigation into the cost-sharing mechanism of order agriculture with consideration for green investment

Jun Li, Honglin Hu, Lei Qin, Ouyang Dai
Cogent Food & Agriculture
Sustainable Supply Chain Management
article

An investigation into the cost-sharing mechanism of order agriculture with consideration for green investment

Jun Li, Honglin Hu, Lei Qin, Ouyang Dai
article en

Abstract

The "processing company + farmer" model is studied for its wide - applicability, targeting high production costs and low farmer participation in green agriculture. Using game theory, we build a model to analyze cost - sharing mechanisms’ effects on green production levels and stakeholders’ profits. Model analysis shows that such a mechanism boosts both processing companies’ and farmers’ profits. Specifically, farmers’ profits rise by 20%, and companies’ by 8%. Higher agricultural product conversion rates amplify this profit growth. This indicates cost - sharing mechanisms’ economic benefits and their role in motivating farmers for green production. In summary, for the "processing company + farmer" model, a cost - sharing mechanism is crucial for profitability and promoting farmer - led green production, supporting sustainable agriculture.

Cogent Food & AgricultureVol. 11(1)
National Natural Science Foundation of China
Zero hunger
Openalex Percentile: Top 91%
Sustainable Supply Chain Management
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