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ORIGINAL RESEARCH article

Front. Sustain. Food Syst.
Sec. Agricultural and Food Economics
Volume 9 - 2025 | doi: 10.3389/fsufs.2025.1501600

Small profits mean peace: Food price, risk aversion and farmers' choices of sale channels

Provisionally accepted
Tan Tian Tan Tian *Yuan Yuan Su Yuan Yuan Su Pei Chen Pei Chen *
  • Nanjing University of Finance and Economics, Nanjing, China

The final, formatted version of the article will be published soon.

    Abstract：This paper examines the mechanism by which food price affect farmers' choices of sale channels and the role played by risk aversion, based on the 2022 China Land Economic Survey. The results indicate that higher prices are more likely to lead farmers to choose dealers who are private buyers offering flexible terms, compared with depots which are government procurement centers ensuring stable prices and other channels. It reveals that the underlying reason for farmers' choices is the certainty effect, which causes farmers to prefer dealers offering certain profits over depots with uncertain profits, despite the high prices. It is further found that risk aversion has a mediating effect on the relationship between food price and farmers' choices of sale channels.Keywords：Food price; risk aversion; food sale channels; certainty effect

    Keywords: Food price, risk aversion, food sale channels, Certainty effect, farmers' food sales behaviour

    Received: 25 Sep 2024; Accepted: 06 Jan 2025.

    Copyright: © 2025 Tian, Su and Chen. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.

    * Correspondence:
    Tan Tian, Nanjing University of Finance and Economics, Nanjing, China
    Pei Chen, Nanjing University of Finance and Economics, Nanjing, China

    Disclaimer: All claims expressed in this article are solely those of the authors and do not necessarily represent those of their affiliated organizations, or those of the publisher, the editors and the reviewers. Any product that may be evaluated in this article or claim that may be made by its manufacturer is not guaranteed or endorsed by the publisher.