Producer Attitudes Toward Peanut Market Alternatives: An Application of Multivariate Probit Joint Estimation

Attitudes of peanut producers toward different market alternatives were analyzed assuming the absence of the government support program. A multivariate probit (joint estimation) model for ungrouped data was utilized to ascertain profiles of producers favoring private treaty markets and proposed organized markets. The joint estimation model allows for and measures correlation among market alternatives for greater accuracy in profile analysis. The analysis suggests considerable support for all three of the proposed organized markets. However, choice of alternatives should be considered by a group of potential traders selected on the basis of the profile analysis.