The Optimal Decisions of the “Company + Farmer” Contract-Farming Supply Chain With Nash Bargain Fair Reference

The contract-farming supply chain model consisting of one risk-neutral agribusiness and one risk-averse farmer with fairness concerns is proposed under stochastic yield. The fair reference framework is established according to Nash bargaining game. The impact on the optimal decision of contract-farming supply chain by the risk-averse farmer’s fairness concerns. The numerical study illustrates the application of the model, and analyze some parameter influencing the optimal decision between one risk-neutral agribusiness and one risk-averse farmer with fairness concerns.