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Participation in contract farming has the potential to enhance farmers' income and livelihoods both in developed and developing countries, yet the influence of literacy levels on such agri-systems remains insufficiently explored. This study investigated the effect of farmers' literacy and other socio-economic variables on farmers' engagement in contract farming within Tanzania's cash crops agriculture, framed within the Human Capital Theory. A cross-sectional study used a closed-ended questionnaire to survey 393 smallholder tea farmers in Mbeya and Njombe regions. Using binary logistic regression, quantitative analysis assessed the null hypothesis that literacy and selected socio-economic variables do not significantly influence contract farming participation. The results reveal that higher farmer literacy levels influence positively and significantly the likelihood of contract farming participation. This finding underscores the relevance of education in contract farming dynamics. Additionally, farmer's gender and land size found to have a significant positive influence on participation likelihood. Other variables, including income, market information access, farming experience, and technology access, showed a positive but insignificant association with participation, while age had a negative but insignificant effect. These findings suggest that contract farming is influenced by multifaceted factors however, education appears to be a key determinant factor in fostering effective contracts. The government and other stakeholders should thus focus on targeted literacy policy and programs for successful contract farming involvement. Future research may delve into localities nuances, unravelling intricate links between literacy, socio-economic factors, and contract farming dynamics. [ABSTRACT FROM AUTHOR]

In transitional economies, contract farming is widely recognized as a means for addressing numerous market failures affecting small farmers. Reviewing the scholarship on contract farming, we show that its traditional understandings have been framed by the narratives of transaction cost economics and power dynamics. We critically evaluate these narratives and demonstrate how stakeholder theory, with its relational understanding of business, offers a more comprehensive understanding of contract farming. We argue that a stakeholder theory perspective underscores the trust-based and collaborative nature of successful contract farming arrangements. It highlights the importance of informal and moral stakeholder relationships that compensate for the limitations of weak enforcement mechanisms and inadequate legal frameworks in transitional economies. This way, a stakeholder theory perspective on contract farming highlights its strategic management and business ethics dimensions, offering valuable guidance for cultivating successful stakeholder relationships. [ABSTRACT FROM AUTHOR]

Powered by global financial institutions, philanthrocapitalists and development agencies, agricultural commercialization is once again at the forefront of development discourse and policies, especially since the late 2000s. The cornerstone of this development approach is that by investing in raising agricultural productivity, supporting infrastructure, and introducing climate-smart agricultural systems, with private sector investments all along the food value chain, Africa will transform into a breadbasket for the world. In the last decade, Uganda and Tanzania have enthusiastically embraced agricultural modernization discourses, becoming test beds of new ‘frontier’ blueprints: ‘responsible’ agricultural commercialization projects, ‘inclusive’ business models and ‘sustainable’ contract farming schemes. This paper takes issue with the de-politicizing discourse of the value chain paradigm by exploring diachronically the genealogies of agricultural commercialization in Uganda and Tanzania from colonial times, across post-independence state-led modernizations, to the present neoliberal reforms. It argues that mainstream development narratives tagged to commercialization projects have worked as an ‘anti-politics machine’ making invisible to the public eye the widespread land dispossession, rural pauperization and social conflicts it entails. [ABSTRACT FROM AUTHOR]

AbstractThis paper uses the mixed-methods approach to analyze farmer position in contract farming (CF) value chain, challenging simplistic “win-win” narratives that ignore power dynamics and “win-lose” ones that overlook economic factors. PepsiCo hires intermediaries as principal agents to control many smallholders, thereby reducing transaction costs and exerting control over quality raw materials. Through secure commissions to agents and fixed prices to farmers, PepsiCo transfers capital and production risks, respectively. The value chain analysis at each farming stage reveals that although CF addressed specific inputs and output constraints for smallholders, the unequal power dynamics and monopsony position of PepsiCo and intermediaries raise sustainability concerns. The existing unequal power relations within CF value chains underline the urgency of establishing a regulatory mechanism. Without such oversight, individual farmers may find it challenging to advocate for their interests in the face of corporations and intermediaries in cultivating high-value crops, for which demand is rising. [ABSTRACT FROM AUTHOR]

This study investigates the drivers of farmers' dissatisfaction with market-specification contracts for finger millet crop in Kenya. The researcher analysed data from 336 farmers contracted by USOMI, out of which a sub-sample of 146 farmers who grew millet in 2021 was analysed using a probit model and descriptive analysis approach, which showed that asymmetric information related to the role of the contracting firm, lack of adequate understanding of the contract, poor pricing, and input market imperfections are some of the critical constraints and sources of dissatisfaction in the commercialisation of millet farming in Western Kenya. On the other hand, farmers' satisfaction is driven by access to market and reasonable prices offered by the spot market traders. While the study found out that productivity and pricing were not gendered, it was observed that women were generally satisfied with contract farming. Consequently, contractual schemes should integrate complementary factors such as input provision. While the results do not show explicit benefits to women farmers, they do allow for the backing of contract farming in rural development programs to reduce gender inequalities. [ABSTRACT FROM AUTHOR]

India is an agrarian country, and 70% of the rural population is engaged in agriculture for their livelihood. Consumption of potato is being part of the daily routine for many consumers in India and world. The area, production, and productivity of potato in India has been increasing, and export of potato also has been increasing. The production of quality potato is still an issue faced by the Indian farmers due to lack of credit to purchase quality seed tubers, fertilizers, pesticides and so on. These issues are tackled through contract farming which provides the credit, fertilizer, quality seed tubers, harvesting support and technical support to the farmers. PepsiCo is one of the biggest companies involved in contract farming in India for potato production and enhances the quality of potato production for their processing unit which provides quality of product to the consumers as well as good remuneration to the farmers through contract farming. Small and marginal farmers involve in contract farming to meet the global demand. Nowadays, potato production under contract farming has been increasing but violation of the contract by the companies is also increasing. Intervention of the government is required to monitor the contract between potato farmers and companies to avoid conflicts and violations. The involvement of the government in contract farming enhances the quality of the product for the consumers as well as the quality of lifestyle for the farmers through the availability of fair remuneration for their potato production. [ABSTRACT FROM AUTHOR]

Thailand is a global pioneer in contract farming (CF). Many smallholder farmers have gained better access to markets and capital while achieving higher and more stable incomes. Nevertheless, farmers have also faced exploitative conditions in their contractual relationships with agribusiness companies. In response, the Thai Parliament in 2017 passed the Contract Farming Promotion and Development Act. Based on fieldwork with key actors and contract farmers, this article examines how debates around CF have unfolded over time, the key issues discussed in the reform process before and after the CF Act was enacted, and its implications for smallholders. The law has had some success with increasing transparency, improving the conciliation process between farmers and companies, and deterring companies from unfair practices. However, in reality, it has done little to protect the livelihoods of Thai farmers due to a number of limitations, including weaknesses of the law itself, its limited implementation, and the country's wider agrarian political economy. Specifically, the country's oligarchic and oligopolistic political-economic structures have resulted in farmers having little bargaining or political power and limited access to markets. [ABSTRACT FROM AUTHOR]

We evaluate the impact of a producer organization avocado contract farming intervention in Kenya that included (1) an agreement to sell to an avocado exporting company, (2) access to training, and (3) support to gain group‐level Global Good Agricultural Practices (GLOBALG.A.P.) certification as main activities. Using a (nonexperimental) doubly robust difference‐in‐differences design with farm‐level panel data from 2015 and 2017, we show that farmers began selling to the contracted company, were recently trained and received the GLOBALG.A.P. certification. However, the intervention's uptake was less than perfect, especially concerning the procurement aspect of the contract, suggesting widespread side selling. In terms of outcomes, contract farming nevertheless significantly improved sales prices and reported quality, increased direct sales to companies, and led to more planted trees, but also increased total production costs. The effects are driven by the Hass avocado variety, which is in higher demand in export markets and the contracted avocado variety. No significant income and other welfare effects were found. [ABSTRACT FROM AUTHOR]

Abstract Participation in contract farming has the potential to enhance farmers’ income and livelihoods both in developed and developing countries, yet the influence of literacy levels on such agri-systems remains insufficiently explored. This study investigated the effect of farmers’ literacy and other socio-economic variables on farmers’ engagement in contract farming within Tanzania’s cash crops agriculture, framed within the Human Capital Theory. A cross-sectional study used a closed-ended questionnaire to survey 393 smallholder tea farmers in Mbeya and Njombe regions. Using binary logistic regression, quantitative analysis assessed the null hypothesis that literacy and selected socio-economic variables do not significantly influence contract farming participation. The results reveal that higher farmer literacy levels influence positively and significantly the likelihood of contract farming participation. This finding underscores the relevance of education in contract farming dynamics. Additionally, farmer’s gender and land size found to have a significant positive influence on participation likelihood. Other variables, including income, market information access, farming experience, and technology access, showed a positive but insignificant association with participation, while age had a negative but insignificant effect. These findings suggest that contract farming is influenced by multifaceted factors however, education appears to be a key determinant factor in fostering effective contracts. The government and other stakeholders should thus focus on targeted literacy policy and programs for successful contract farming involvement. Future research may delve into localities nuances, unravelling intricate links between literacy, socio-economic factors, and contract farming dynamics.

Contract farming (CF) is a sort of vertical integration in agricultural commodity chains that provides a business with strong control over several operational processes, including the production process, the features of the items, quantity, quality, and timeliness of project execution. Birds were first domesticated by humans as farm animals, and as a result, many years ago, the contemporary practice of raising birds began with the harvesting of their eggs and young from their natural habitat. The Nigerian poultry industry falls into three main categories: small-, medium-, and large-scale, which are also referred to as backyard, semi-commercial, and commercial respectively. Contract farming emerged as an alternative to traditional or spot marketbased agricultural production and was introduced into Nigeria under a variety of business names, including CHI, AMO, ANIMAL CARE, and ZARTECH, among others. Nigeria consumes 192.69 MT of poultry meat and egg products annually, resulting in enormous environmental impacts that have not been adequately addressed because of the growing use of contract farming. Contract farming has always received a lot of attention from academics and policymakers. Even though contract farming acknowledges the transfer of technology, prospects for increased revenue, and improved access to inputs, a great deal of research has focused on the risks that smallholder farmers face. In recent years, debate has erupted regarding the benefits and dangers of factory poultry production considering rising awareness of the challenges it poses to public health and the environment. This review reveals that backyard flocks of chickens can thrive independently of large-scale poultry operations. Survival traits including tiny size, hardiness, sluggish growth, low mature body weight, tolerance, or resistance to common local disease organisms and parasites define local chickens.

Contract farming is widely recognised as an empowering tool to improve the welfare of farmers in developing countries and as an institutional solution to address issues related to market failure, credit, insurance, and information. This research endeavours to scrutinise the socio-economic distinctions between farmers engaged in contract farming and those not involved in such agreements. Additionally, it seeks to identify the factors influencing farmers’ participation in contract farming schemes and assess the impact of such arrangements on the income of red chilli farmers. The study, conducted in Magelang District, included 40 respondents from contract farmers and 45 from non-contract farmers. Employing the probit model, the ordinary least square model, and the treatment effect by Heckman, the research aimed to estimate the income impacts of existing contract farming. The findings revealed a noteworthy 57.50% increase in farmers’ incomes attributed to enhanced productivity and effective product management within the context of contract farming. Moreover, contracted farmers demonstrated advanced socio-economic conditions, boasting higher levels of education, knowledge, productivity, and agricultural assets compared to their non-contracted counterparts.

Background: One of Indonesia's largest producers of robusta coffee, Lampung Province still faces challenges and risks in coffee productivity. Coffee productivity in Lampung fluctuates and tends to decrease each year. Contract farming is one of the solutions to overcome these issues. Purpose: This research aims to analyze the impact of contract farming on production and production risk in robusta coffee farming in Lampung Province. Design/methodology/approach: The data used in this study is secondary data obtained from the Project Cooperation Agreement (PCA). This research uses a sample size of 99 contract farmers and 104 non-contract farmers. The research analysis method uses the OLS estimation approach to estimate the production function and MLE estimation for the production risk function. Findings/Result: The results showed that contract farming significantly and positively impacts coffee production outcomes. Conversely, contract farming has a significant and positive influence on production risk. Meanwhile, factors that reduce production risk include land area and labor. Contract farming increases production yields, but it also raises production risks. This insight is crucial for farmers considering contract farming, as it underscores the need for comprehensive risk management strategies and productivity enhancements. Conclusion: Contract farming in Lampung has successfully increased coffee production through input assistance and access to technology. However, it has also increased production risks due to the incomplete implementation of contracts by farmers. To mitigate these risks, attention must be given to factors such as land area and labor, which have been proven to reduce production risks. Originality/value (State of the art): Contract farming in Lampung has shown great potential in increasing coffee production. However, the incomplete implementation of contracts by farmers has increased production risks. This study emphasizes the importance of risk management in contract farming. To enhance effectiveness, full implementation of contract terms and better risk management are necessary [ABSTRACT FROM AUTHOR]

Copyright of Journal of Agricultural Economics & Social Sciences is the property of Egyptian National Agricultural Library (ENAL) and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Introduction: Engaging in contract farming represents a crucial avenue for developing countries to integrate small farmers into modern agricultural practices. Existing research believes that contract farming offers a promising opportunity for fostering sustainable agricultural development. However, insufficient attention has been directed toward investigating the varying impacts of different organizational models within contract farming on farmers' transition to green production practices. Methods: This study investigates the impact of contract farming on green technological efficiency of farmers using survey data from 719 wheat growers in Shandong Province, China. The propensity scorematchingmethod andmultiple mediation effects models are employed for empirical analysis. Results: The organizational model plays a pivotal role in determining whether participation in contract farming can improve the green technological efficiency of farmers. Participation in an integratedmodel demonstrates a significant effect on improving green technological efficiency, whereas participation in a quasi-integrated model does not show a significant improvement. Integrated contract farming can improve green technological efficiency through expanding the degree of land consolidation and enhancing the level of productive service, whereas quasi-integrated contract farming improves green technological efficiency only by enhancing production intensification. As an economic incentive measure, the effect of contract purchase price on strengthening the enhancement of green technological efficiency in the quasi-integrated model is moderate only when the contract purchase price exceeds the local average selling price of wheat by more than 19.3%. Conversely, the moderate effect of farmers' dividend income in the integratedmodel remains consistent, with higher dividend incomes correlating with a stronger moderating effect. Discussion: The impact of contract farming on green technology efficiency correlates significantly with the organizationalmodel. Compared with the quasi-integrated contract farming model, the integrated model distinctly excels in advancing farmers' green technology efficiency, evidenced by its ability to consolidate fragmented land, provide productive services, and offer economic incentives. Therefore, to unlock the latent potential of contract farming in driving agricultural green transformation, a shift toward organizational models with higher levels of integration is essential. [ABSTRACT FROM AUTHOR]

Gujarat is known for its French fries potatoes in India. This state is number one in potato productivity. It provides an amicable business environment for producers and processors for contract farming. To understand potato production practices, 180 contract farmers were studied in different villages of northern Gujarat after doing multistage sampling from districts to Talukas and then villages. Data were analysed through frequencies, percentages, and Garrett ranking techniques. It was found that potato contract farming was more centric towards larger producers although processors screened out their preferred producers on the basis of a number of parameters, like land holding capacity, business sense, youthfulness, and positive attitude. Potato contract farming in the state was more informal than formal. The processors provided seed and in time consultancy support to the producers. Higher input cost was the major reason for breaching the contract. Any conflict in this direction was solved through a participatory approach. Ultimately, lack of labour and credit issues made contract farming challenging for the producers that need to be nullified by the processors. [ABSTRACT FROM AUTHOR]

Background: An estimated two billion people do not have sufficient access to nutritious food, and nearly half are dependent on small‐scale and subsistence farming. Projections show that the global population is not on track to reach the Sustainable Development Goals. With this in mind, development actors are increasingly seeking to better integrate rural farmers into agricultural markets. This synthesis of the literature can help to inform policy decisions to improve outcomes for smallholder farmers in low‐ and middle‐income countries, and to enable the realization of the Sustainable Development Goals. This work is the most comprehensive and up‐to‐date review synthesizing evidence from 262 interventions. Objectives: The purpose of this systematic review is to appraise and synthesize evidence of the effects of five types of interventions facilitating farmers' access to output markets in low‐ and middle‐income countries. We examine how these effects vary across contexts and subgroups. We also identify evidence on program costs and evidence gaps in the literature. Search Methods: The search of included studies was based on nine major databases/search engines and 25 institutional websites, using a set of English search terms. We also conducted forward and backward citation tracking of literature, published a public call for papers, and contacted key experts. Selection Criteria: We included studies on the effects of five types of output market access interventions, focusing on participants residing in low‐ and middle‐income countries: (1) Farm‐to‐market transport infrastructure interventions; (2) Access to output market information interventions; (3) New marketplaces or alternative marketing opportunities interventions; (4) Contract farming interventions; (5) Improved storage infrastructure and technologies interventions. We included published and unpublished studies from 2000 onwards, with experimental and quasi‐experimental study designs focusing on relevant outcomes. Data Collection and Analysis: We screened 52,366 studies, identifying a total of 439 papers representing 289 unique studies on the effects of 262 interventions in 53 countries. Data extraction and risk of bias assessments were completed by two independent reviewers. Main Results: All five types of output market access interventions resulted in small‐to‐moderate positive effects on almost all measures of market participation, agricultural production, and welfare outcomes. These improvements occurred through a reduction in transaction costs, adoption of improved practices, greater farm investment, access to higher prices for farmers, greater volume sold, and increased farm income. Effects vary by intervention type. However, the body of evidence is comprised of a large share of included studies with a high risk of bias. Few studies have information on the cost of interventions, and there are gaps in the available evidence. Authors' Conclusions: Output market access interventions are effective in reducing transaction costs and addressing market failures, thereby leading to higher income levels. Evidence of effects on food security and nutrition is sparse and has not provided conclusive findings. We also found that multi‐component interventions are not necessarily more effective than single component interventions. The specific needs and dynamics of each context should inform the choice of the intervention and approach. Investments in additional research with low risk of selection bias and confounding effects will improve the evidence base, especially for outcomes that constitute gaps in the literature. For example, the effects on quality of agricultural products and group participation are under‐researched, and we did not find any included studies focusing on North Africa or the Middle East. Collecting and reporting information on interventions' cost‐effectiveness will help decision‐makers to prioritize limited resources. [ABSTRACT FROM AUTHOR]

Contract farming has been extensively adopted as a strategy to overcome limitations in the market and enhance the well-being of farmers. Nevertheless, the extent to which it affects food security has not been sufficiently examined and is uncertain. Moreover, there is a lack of empirical evidence regarding the impact of contract farming on food security in Indonesia. To fill the existing research gap, this study employs propensity score matching (PSM) to mitigate selection bias in examining the impact of contract farming on the food security of smallholder farm households in Indonesia. It utilizes the 2021 Indonesia Agricultural Integrated Survey (SITASI) data, designed to monitor the indicators of sustainable development goals (SDGs) in the agriculture sector. The food insecurity experience scale (FIES) is used to measure food security. Our research shows that contract farming can potentially improve the food security of smallholder farm households in Indonesia. However, the overall impact can be considered minor. Contract farming has the potential to enhance food security, but it may not be adequate as a standalone solution. A comprehensive strategy, complemented by related policies such as innovative farming practices, technology adoption, and income-generation measures, is essential. Furthermore, our investigation revealed that this beneficial effect is particularly prominent among farmers residing in rural areas, female farmers, and farmers who do not own land or livestock. It indicates that contract farming can be a feasible tool for poverty alleviation, rural development, and woman empowerment. This study also found that factors such as location, market access, credit availability, gender, education, and exposure to agricultural training influenced contract farming participation.

This article focuses on how Mexico’s brewers, backed by a collaboration of U.S. and Mexican agronomists and officials who together developed the foundations of the Green Revolution, facilitated the centralization of decision-making over new technologies of production in the malt barley industry in the mid-twentieth century. Brewers developed and enforced an extensive contract farming system dominated by a single company that gave them substantial control over the dissemination of new knowledge about seed varieties, but which created an opportunity for profit-seeking intermediaries to assume a primary role in mediating the transfer of these new technologies to small farmers. In doing so, they enabled the consolidation of a brewing triopoly that, while poised for global expansion by the 1980s, contributed to higher levels of rural inequality as it deployed Green Revolution technologies to serve large industry growth. This article therefore examines a key, though often underexplored dimension of the Green Revolution, in particular how urban industry captured new technologies aimed at ending food insecurity to serve mid-century industrialism.

Abstract Recently, due attention was given to the commercialization of smallholder agriculture through contact farming, hoping that it would bring the positive impact on the income of smallholder producer in Ethiopia. This article presents the results of data analysis conducted to generate empirical data required to inform the smallholder agricultural commercialization policy using data collected from 424 (194 participants and 230 non-participants) randomly selected vegetables producer farmers from the 2 districts of the East shewa zone of the Oromia Regional State, Ethiopia. The propensity score matching was used to assess the impact of contract farming (CF) on smallholder farmers’ income in the study area. The probit model result shows that, the proportion of total crop area allocated to vegetables, access to credit, frequency of extension contacts, market information, and distance of the market center havepositive and significance effects on decision of vegetable producers to participate on the CF. The impact assessment result using PSM reveals that, gross annual income of the contract participants were lower by the 3.8% (Birr 2942) as compared to the non- participants. This implies that, local context matters for the success of CF and improves their livelihood. However, some of the CF participants would like to continue for access of production inputs, access to credit, technical advice and to reduce marketing risks and uncertainty. In conclusion, CF is a useful institutional arrangement which increases smallholders’ income and benefit from remunerative value chains agriculture, but it is not a panacea that works in different contexts. Hence, policy makers should base their choices on empirical evidence and local context to consider alternative and complementary intervention options to enhance smallholder commercialization and ensure sustainable livelihood in the research area.

In the past decade, contract farming has re-emerged due to the increased opposition to large-scale land acquisitions in many developing countries. During this era, contract farming has been promoted as an inclusive alternative to land grabbing that could help farmers retain their land, and an inclusive business model could help link smallholder farmers to the markets, helping alleviate poverty and promote rural development. Guided by the PRISMA protocols, this article reviews the implications of large-scale agricultural investments (LSAIs) and contract farming on Tanzania's rural livelihoods, food security, and the environment. The study found little evidence of LSAIs and contract farming's contribution to improving rural livelihoods and food security. LSAIs and contract farming exacerbate the ‘dispossession from below’ by accelerating land transfer from poor to rich farmers, suggesting that the schemes do not largely benefit the poor. The schemes have increased pressure on land between outsiders and indigenous farmers and declined the land size used to produce food crops, affecting local food security. The excessive use of synthetic inputs, clearing forests for LSAIs, and contract farming lead to ecological degradation. The study highlights the importance of ensuring LSAIs and contract farming schemes are more sustainable, inclusive and responsible investments.

AbstractContract farming was implemented in Tigray to improve access to support and marketing services and ensure consistency in the volume of supplied products. However, its impact has not been examined yet. Therefore, this study estimates the impact of contract farming on sesame productivity farmers in western Tigray. The study uses cross-sectional farm household-level data collected in 2021 with a sample of 397 household heads and those household heads were selected using a multistage stratified random sampling technique. Propensity Score Matching and Endogenous Switching Regression models were employed to estimate the impact of contract farming on Sesame productivity and to check the robustness of the results. Our findings show that participation in contract farming corroborates important improvements for contract farmers via the chosen output indicators. The number of workers used, farming experience, inorganic fertilizer use, seed variety, and farm size allocated to sesame were positively associated with both contract and non-contract farmers. However, years of schooling were positively correlated while the age of household heads was negatively associated with contract farmers. On the other hand, access to extension services was negatively correlated with the non-contract farmers. The endogenous switching regression model predicts two results coincidentally for the contract and non-contract farmers. The result indicates that 400 kg per hectare would reduce sesame productivity if the farmers would not adopt contract farming while non-contract farmers could improve their sesame productivity by 150 kg per hectare if they would be part of the program.

AbstractContract farming (CF) has been one of the strategies employed to enhance the production and productivity of malt barley and substitute imported malt barley in Ethiopia, in addition to addressing marketing challenges. The predicted results also include satisfying domestic malt barley demand, enhancing farmers’ welfare, and saving the nation’s foreign exchange. Hence, this study evaluated the production efficiency impact of malt barley CF in northwestern Ethiopia. The study was based on the data collected from 398 farmers in two districts, selected using multistage sampling techniques. The probit model showed that CF participation among malt barley farmers was positively correlated with frequency of extension contact, field day, training, cooperative membership, credit, and household size. The maximum likelihood estimator of SPF shows malt barley farm, fertilizer, and oxen power had positive effects on malt barley output. The stochastic cost frontier analysis demonstrated that the total cost of production was positively and significantly impacted by malt barley output and the cost of inputs (labor, oxen, farm, and seed). Propensity score matching (PSM) revealed that CF increased the TE, AE, and EE by 4.52%, 12.34%, and 11.55% for participants, respectively. The findings of this study demonstrate that CF can increase farm households’ TE, AE, and EE, which policymakers and other interested organizations may consider as a different development strategy as long as it is adjusted to local conditions.

Context and background Contract farming has been promoted as a more 'inclusive business model' in which local smallholder farmers can participate in and benefit from the wider benefits of investments in rural areas such as infrastructure development (power supply, roads, water supply), spillovers from increased incomes and, in some cases, mandatory development of education and health facilities. Contract farming models could have a positive impact on agricultural development and innovation in developing countries. Contract farming creates a system that links smallholder farmers with domestic and international buyers. Contract farming could secure existing local land rights of smallholder farmers by continuing farming on their land, promoting investments by investors and fostering the commercialization of smallholder farmers. Contract farming could enhance local food security. However, contract farming models do not always have a positive impact. Sometimes contractors make a profit without supporting or, sometimes, exploiting contracted smallholders. Goal and Objectives: The primary focus of this paper is to analyze the impact of contract farming on household food security. The paper will address the following research questions: What are the determinant factors that affect participation in contract farming? and What is the impact of contract farming on household food security in Kenya and Madagascar? Methodology: This study used three internationally recognized food security indicators to measure the food security status of the household: household dietary diversity score (HDDS), food consumption score (FCS) and the months of adequate household food provisioning (MAHFP). This study used an endogenous switching regression (ESR) model to estimate the impact of contract farming on household food security. The research is purely empirical research is based on observation and measurement of phenomena, as directly experienced by the researcher Results: AI can be effectively applied by Informal Cross-Border Traders (ICBT) to enhance their businesses and enhance competitiveness. There are several AI applications accessible to ICBT within their operational context. Although the adoption and utilization of AI in Africa are still in their infancy, there is considerable promise for the future. Africans must address the challenges hindering the adoption and utilization of AI, as technology is advancing rapidly, and opportunities await those who embrace it. [ABSTRACT FROM AUTHOR]

The present paper aimed to investigate the main characteristics of contract farming versus non-contract farming from Dornelor Basin, Suceava county. The research was based on a large-scale survey conducted in the study area, the data being collected from 52 farms who raise dairy cows. The results reveal that contract farmers are, generally, younger, have a slightly higher education level, with more years of agricultural experience and have larger farms, both in terms of size and number of animals, but they express a lower degree of willingness to uptake sustainable practices in comparison with non-contract farmers. Still, it looks like contract farming could represent a viable support instrument to farmers for converting to more sustainable practices. One possible way of achieving this is by creating a connection between contracting and the adoption of ecological farming methods and by supporting farmers with inputs and training in sustainable agricultural practices. [ABSTRACT FROM AUTHOR]

The Taiwanese government introduced specialized rice production and marketing zones (SRPMZs) in 2005 as part of the structural adjustment of the rice industry. This study shows the effect of SRPMZ on leased farmland and custom farming and clarifies the role of the policy of supporting group farming operations in achieving farmland consolidation. This study uses the difference-in-differences method with and without covariates to estimate the effects of SRPMZ policy in Taiwan. This study analyzes the effect of the SRPMZ designation on the areas of leased and custom farming farmland at the village level. This study used village-level data from Taiwan's Censuses of Agriculture from 2000 to 2015. We find that SRPMZ designation increases the area of leased farmland per village by 13.5 ha and decreases the area with custom farming by 4.86 ha when we apply difference-in-differences methods with time-varying covariates. This is the effect of farmers choosing to lease their farmland through SRPMZ instead of custom farming. While several studies discuss the SRPMZ policy, focusing on farmer productivity or SRPMZ operator efficiency, few studies have analyzed the impact of the SRPMZ policy on farmland use. The results indicate that the policy of supporting group farming operations, coupled with farmland leasing, can promote farmland consolidation and improve the agricultural structure. [ABSTRACT FROM AUTHOR]

Recently, due attention was given to the commercialization of smallholder agriculture through contact farming, hoping that it would bring the positive impact on the income of smallholder producer in Ethiopia. This article presents the results of data analysis conducted to generate empirical data required to inform the smallholder agricultural commercialization policy using data collected from 424 (194 participants and 230 non-participants) randomly selected vegetables producer farmers from the 2 districts of the East shewa zone of the Oromia Regional State, Ethiopia. The propensity score matching was used to assess the impact of contract farming (CF) on smallholder farmers' income in the study area. The probit model result shows that, the proportion of total crop area allocated to vegetables, access to credit, frequency of extension contacts, market information, and distance of the market center havepositive and significance effects on decision of vegetable producers to participate on the CF. The impact assessment result using PSM reveals that, gross annual income of the contract participants were lower by the 3.8% (Birr 2942) as compared to the non- participants. This implies that, local context matters for the success of CF and improves their livelihood. However, some of the CF participants would like to continue for access of production inputs, access to credit, technical advice and to reduce marketing risks and uncertainty. In conclusion, CF is a useful institutional arrangement which increases smallholders' income and benefit from remunerative value chains agriculture, but it is not a panacea that works in different contexts. Hence, policy makers should base their choices on empirical evidence and local context to consider alternative and complementary intervention options to enhance smallholder commercialization and ensure sustainable livelihood in the research area. [ABSTRACT FROM AUTHOR]

This paper uses panel data and qualitative interviews from southwestern Ghana to analyse farmers' heterogeneous oil palm marketing decisions and the effect on household welfare. We show that despite the supposed benefits that smallholders could derive from participation in global agribusiness value chains via formal contracts, such arrangements are rare although two of Ghana's 'big four' industrial oil palm companies are located in the study area. In the absence of formal contracts, farmers self-select into four main oil palm marketing channels (OPMCs). These OPMCs are associated with varying levels of welfare, with processing households and those connected to industrial companies by verbal contracts being better off. Furthermore, own-processing of palm fruits is shown to reduce gender gaps in household welfare. We also unearth community and household level factors that hamper or facilitate participation in remunerative OPMCs. These results have implications for development policy and practice related to inclusive agricultural commercialization. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Development Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Copyright of Journal of Management & Agribusiness / Jurnal Manajemen & Agribisnis is the property of IPB University and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract The escalating demands of a growing population and rising living standards strain the efficiency of traditional agricultural methods in fulfilling consumer nutritional needs. Technological advancements, particularly the introduction of contract farming models, offer a potential path towards addressing these challenges. However, in Iran, contract farming remains an underdeveloped and under-researched agricultural practice. This study delves into the factors influencing the development of contract farming in Iran. Employing a two-level multinomial logit model and data collected through 380 questionnaires administered to farmers in the Kermanshah region, the research reveals income (measured by the number of employed household members) as the primary driver of contract farming adoption. Additionally, factors such as reduced agricultural risk, higher education levels among farmers, improved product sales prices, and proximity to processing facilities positively impact the expansion of contract farming. Interestingly, “push factors” like land scarcity significantly influence non-contract farming participation, with 30.8% of surveyed households relying on these alternative methods. Geographical factors also contribute, explaining 23% of the observed variance in farming activity choices. These findings inform key policy interventions for sustainable contract farming development in Iran: robust legal frameworks and transparent contracts, contract-specific insurance schemes, training for agricultural extension workers, and farmer awareness campaigns.

Abstract Background An estimated two billion people do not have sufficient access to nutritious food, and nearly half are dependent on small‐scale and subsistence farming. Projections show that the global population is not on track to reach the Sustainable Development Goals. With this in mind, development actors are increasingly seeking to better integrate rural farmers into agricultural markets. This synthesis of the literature can help to inform policy decisions to improve outcomes for smallholder farmers in low‐ and middle‐income countries, and to enable the realization of the Sustainable Development Goals. This work is the most comprehensive and up‐to‐date review synthesizing evidence from 262 interventions. Objectives The purpose of this systematic review is to appraise and synthesize evidence of the effects of five types of interventions facilitating farmers' access to output markets in low‐ and middle‐income countries. We examine how these effects vary across contexts and subgroups. We also identify evidence on program costs and evidence gaps in the literature. Search Methods The search of included studies was based on nine major databases/search engines and 25 institutional websites, using a set of English search terms. We also conducted forward and backward citation tracking of literature, published a public call for papers, and contacted key experts. Selection Criteria We included studies on the effects of five types of output market access interventions, focusing on participants residing in low‐ and middle‐income countries: (1) Farm‐to‐market transport infrastructure interventions; (2) Access to output market information interventions; (3) New marketplaces or alternative marketing opportunities interventions; (4) Contract farming interventions; (5) Improved storage infrastructure and technologies interventions. We included published and unpublished studies from 2000 onwards, with experimental and quasi‐experimental study designs focusing on relevant outcomes. Data Collection and Analysis We screened 52,366 studies, identifying a total of 439 papers representing 289 unique studies on the effects of 262 interventions in 53 countries. Data extraction and risk of bias assessments were completed by two independent reviewers. Main Results All five types of output market access interventions resulted in small‐to‐moderate positive effects on almost all measures of market participation, agricultural production, and welfare outcomes. These improvements occurred through a reduction in transaction costs, adoption of improved practices, greater farm investment, access to higher prices for farmers, greater volume sold, and increased farm income. Effects vary by intervention type. However, the body of evidence is comprised of a large share of included studies with a high risk of bias. Few studies have information on the cost of interventions, and there are gaps in the available evidence. Authors' Conclusions Output market access interventions are effective in reducing transaction costs and addressing market failures, thereby leading to higher income levels. Evidence of effects on food security and nutrition is sparse and has not provided conclusive findings. We also found that multi‐component interventions are not necessarily more effective than single component interventions. The specific needs and dynamics of each context should inform the choice of the intervention and approach. Investments in additional research with low risk of selection bias and confounding effects will improve the evidence base, especially for outcomes that constitute gaps in the literature. For example, the effects on quality of agricultural products and group participation are under‐researched, and we did not find any included studies focusing on North Africa or the Middle East. Collecting and reporting information on interventions' cost‐effectiveness will help decision‐makers to prioritize limited resources.

Rice cultivation has played a pivotal role in Guyana's agricultural history, contributing significantly to both sustenance and economic prosperity for over two centuries. Accounting for 3.3% of the country's gross domestic product (GDP) and a substantial 20.5% of the agricultural GDP, the rice industry has faced challenges influenced by various global and domestic factors, impacting the productivity and profitability of rice farmers. One key influencing factor is contract farming, involving agreements between farmers and firms that outline production and marketing conditions for agricultural products. In Guyana's rice industry, contract farming is prevalent, but challenges such as unequal bargaining power and discrepancies in weights and prices persist. Notably, using two pricing standards, high-price and low-price, further complicates the understanding of contract farming's impact on rice cultivation. We delved into the role and impact of contract farming on rice cultivation in Guyana, with a specific focus on the Mahaica-Berbice and Essequibo Islands-West Demerara regions. In this study, conducted with 121 farmers using systematic sampling, we used profitability assessment, frequency distribution, and binary logistic regression analyses. The findings revealed that high-price contracts contributed to greater farmer profitability compared to low-price contracts. Despite this, low-price contracts persisted due to factors such as risk-sharing, access to credit, and fertilizers. Moreover, pricing standards influenced farmer behavior, with low-price contracts prompting crop diversification to supplement income. These insights underscored the significance of pricing standards in determining the effectiveness of contract farming and its impact on farmers' livelihoods. Policymakers and stakeholders can leverage these findings to design more effective contract farming models, enhancing farmers' profitability and contributing to sustainable agricultural development. Furthermore, future research may explore the impact of farmers' organization membership on contract farming productivity, providing additional depth to our understanding of this crucial agricultural practice.

Amidst global efforts to reduce carbon emissions, the significance of bioenergy as a sustainable alternative has become increasingly prominent. To promote the development of the bioenergy industry, corresponding intervention policies are indispensable. This paper explores the role of government intervention policies—the Skill Training Policy (STP) and the Promotion Relationship Policy (PRP)—in advancing the bioenergy sector within a contract farming framework. This paper develops models to analyze the optimal government intervention policies by capturing the strategic interactions between the government, the bioenergy company, and the farmer. The findings reveal that both STP and PRP increase biomass feedstocks supply and the profit for the farmer and the bioenergy company, enhancing overall social welfare. Specially, When the implementation cost of STP is low enough, it can enable the farmer and the bioenergy company to achieve higher profits and assist the government in achieving greater social welfare than PRP. When the green benefit from bioenergy is high, STP can more effectively promote the supply of biomass feedstocks and enhance social welfare. However, when the green benefit is relatively low, PRP is a better choice. This research provides insights for policymakers to tailor government subsidies to promote the bioenergy industry efficiently.

Implementing contract farming is considered to bring benefits to participating parties, especially farms/farming households. Many studies have shown the impact of participating in contractual arrangements on the welfare of farms/farming households, often in a region or small area and some typical agricultural production activities. The paper uses data from the Vietnam 2020 mid-term Rural and Agricultural Survey and the propensity score matching method to explore the impact of participating in contract farming on the economic and environmental performance of farms engaged in the cultivation of rice, annual crops, and perennial crops. The results reveal that the farm head's education level, the rate of outsourced labor on the farm, and the proportion of farm-owned land area affect the farm's decision to participate in contract farming. This impact varies between farms growing different types of crops and depending on the type of contract. In addition, farms in the South have a higher likelihood of participating in contractual arrangements than those in the North. The study also reveals that farms with contracts were found to have higher revenues and use less chemical fertilizer compared to farms without contracts. [ABSTRACT FROM AUTHOR]

We identify factors influencing farmers' decision‐making on various production contracts and are explicitly concerned with whether managing market risk or profit orientation promotes contract farming (CF). After controlling for potential endogeneity, the IV‐Tobit regression results indicate that farmers' risk behavior and profit orientation are vital factors driving CF participation decisions. However, we observed that the impact of profit orientation is relatively more substantial than the risk management motive, suggesting that earning a higher profit, rather than managing market risks, is the primary objective of CF adoption. In addition, other factors such as farm size, mean contract price, education, age, and extension services play a significant role in CF participation. The major policy implications, based on results, call for enhancing the CF network and encouraging farmers to commercialize agriculture as it facilitates access to the market and higher profits. Further, agribusiness firms should share more market risks with farmers to invite risk‐averse smallholders into the fold of commercial farming. [ABSTRACT FROM AUTHOR]

Rice cultivation has played a pivotal role in Guyana's agricultural history, contributing significantly to both sustenance and economic prosperity for over two centuries. Accounting for 3.3% of the country's gross domestic product (GDP) and a substantial 20.5% of the agricultural GDP, the rice industry has faced challenges influenced by various global and domestic factors, impacting the productivity and profitability of rice farmers. One key influencing factor is contract farming, involving agreements between farmers and firms that outline production and marketing conditions for agricultural products. In Guyana's rice industry, contract farming is prevalent, but challenges such as unequal bargaining power and discrepancies in weights and prices persist. Notably, using two pricing standards, high-price and low-price, further complicates the understanding of contract farming's impact on rice cultivation. We delved into the role and impact of contract farming on rice cultivation in Guyana, with a specific focus on the Mahaica-Berbice and Essequibo Islands-West Demerara regions. In this study, conducted with 121 farmers using systematic sampling, we used profitability assessment, frequency distribution, and binary logistic regression analyses. The findings revealed that high-price contracts contributed to greater farmer profitability compared to low-price contracts. Despite this, low-price contracts persisted due to factors such as risk-sharing, access to credit, and fertilizers. Moreover, pricing standards influenced farmer behavior, with low-price contracts prompting crop diversification to supplement income. These insights underscored the significance of pricing standards in determining the effectiveness of contract farming and its impact on farmers' livelihoods. Policymakers and stakeholders can leverage these findings to design more effective contract farming models, enhancing farmers' profitability and contributing to sustainable agricultural development. Furthermore, future research may explore the impact of farmers' organization membership on contract farming productivity, providing additional depth to our understanding of this crucial agricultural practice. [ABSTRACT FROM AUTHOR]

Copyright of Canadian Journal of Development Studies is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

The purpose of this article is to provide a report on scientific production in the field of the role of contract farming in farmers' income and pinpoint research gaps. For this purpose, content and citation analysis using R-based Biblioshiny and visualization using VOSviewer were performed. A total of 228 articles were selected from Scopus database which were reduced to 159 in accordance with their relevancy. The analysis shows that although farmer income is one of the most significant social sustainability issues, the field is still underrepresented and has received considerable academic attention only in recent years. The majority of contemporary studies have come from a South Asian perspective, with India and the USA being the two major contributors. The currently available literature focuses mainly on a few key aspects, such as the advantages, difficulties, and historical background of contract farming. However, several crucial issues, such as the sustainability of contract farming, farmers' bargaining power, and autonomy are not addressed. Hence, empirical data is scant. The major limitation is the reliance on a single data source, namely Scopus, and it is highly probable that additional beneficial researches that are not included in Scopus will continue to be overlooked. [ABSTRACT FROM AUTHOR]

Social and biophysical vulnerability of agriculture to climate change has increased exponentially in Sub-Sahara Africa (SSA). Although contract farming (CF) schemes have burgeoned in developing countries as a resilience-building strategy for smallholder farmers, there is a lack of empirical evidence to show how and why CF enhances smallholder farmers’ resilience to climate change in SSA. This paper combines theoretical insights from climate change adaptation literature with qualitative data to explore three CF schemes implemented in northern Ghana to find out whether or not they enhance smallholder farmers’ resilience to climate change. The results show that smallholder farmers perceived a change in climate parameters, namely declining rainfall, uneven rainfall distribution and rising temperatures, leading to reduced agricultural yields. In response, smallholder farmers have implemented three CF schemes, which vary, not only in terms of crops cultivated but in terms of the contractual arrangement, as a resilience-building strategy to the changing climate. The CF schemes provided material and non-material resources to participating farmers and enhanced their resilience to climate change better than non-contract farmers. Contrarily, depending on how production risks are distributed in the schemes studied, CF can undermine the resilience of smallholder farmers. Ultimately, the paper provides critical insights on how to design and implement CF schemes to enhance the resilience of agrarian societies in the face of increasing climate change in SSA and beyond. [ABSTRACT FROM AUTHOR]

Agriculture is an important sector in Zimbabwe's economy. More than 70% of the population are smallholders relying on agriculture. To support agriculture, Zimbabwe's government introduced a Targeted Command Agriculture Programme (TCAP), in terms of which the state provides production inputs like seeds, fertilisers, protection chemicals, and extension services. In turn, the farmer is expected to produce 5 tonnes of maize per hectare for the Grain Marketing Board. The cost of inputs that the state provided is then deducted from the 5-tonne maize yield, and the farmer is paid the balance. Numerous authors have studied the design of TCAP and its impact on farmers. However, only a few have focused on the determinants of participation, especially with an empirical basis and in the Mutare District. To bridge this knowledge gap, this study implements a double-hurdle model to determine factors influencing farmers' participation in Zimbabwe's TCAP using a sample of 350 farmers. The study found that gender, family size, farmer type, command agriculture education, and distance from the market influenced smallholder farmers' participation in TCAP. Therefore, policymakers should consider these factors to improve the design of the programme and enhance the participation of smallholder farmers in it. [ABSTRACT FROM AUTHOR]

The acquisition of large tracts of land for agricultural investment from developing countries, including Ethiopia, by commercial firms has been aggravated after global food crisis in 2007–2008. Given the current attention to large‐scale land acquisition or land grabbing phenomenon, contract farming has been identified as a participatory and inclusive farming model which does not require agricultural firms to purchase or lease land in order to operate agricultural investments. Contract farming enables local smallholder farmers to produce agricultural products on their own land and ensure the benefits of land‐based agricultural investments remain with them. Unfortunately, the understanding and practice of contract farming as an alternative to large‐scale land acquisition to protect the land rights of the local people is underexplored in Ethiopia. This study, therefore, is aimed to examine the practice and conceptual understanding of contract farming in the context of agricultural investment in Ethiopia. To achieve this objective, mixed research approach was employed. Intensive document reviews, questionnaire, key informant interview and FGD were used as data collection tools. The results show that the practice of contract farming in Ethiopia is very insignificant and commercial farming is almost entirely relied on land acquisition. Moreover, gaps in policy and legal framework to guide contract farming has made difficult to effectively implement contract framing at national level. Finally, this study advised to introduce contract framing as a viable alternative to land acquisition for agricultural investment that fosters local smallholder farmers' participation in agricultural production and contributes to sustainable development. [ABSTRACT FROM AUTHOR]