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Impact of Contract Farming on Income: Linking small farmers, Packers, and Supermarkets in China

Impact of Contract Farming on Income: Linking small farmers, Packers, and Supermarkets in China
Author: Sachiko Miyata, Nicholas Minot, and Dinghuan Hu
Publisher: Intl Food Policy Res Inst
Total Pages: 36
Release: 2009
Genre: Social Science
ISBN:

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This study compares contract and non-contract growers of apples and green onions in Shandong Province, China in order to explore the constraints on participation and the impact of contract farming on income. We find little evidence that firms prefer to work with larger farms, though all farms in the area are quite small. Using a Heckman selection-correction model, we find that contract farming raises income even after controlling for observable and unobservable household characteristics. These results suggest that contract farming can help raise small-farm income, though questions remain regarding the number of farmers that can be brought into such schemes.


Can contract farming increase farmers’ income and enhance adoption of food safety practices?

Can contract farming increase farmers’ income and enhance adoption of food safety practices?
Author: Kumar, Anjani
Publisher: Intl Food Policy Res Inst
Total Pages: 36
Release: 2016-04-20
Genre: Social Science
ISBN:

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Growing inequality has become an important concern in many countries. One of the ways that inequality is perpetuated is through differential market access across regions. This research deals with one of the primary determinants of regional inequality manifested in terms of market access. Nepal is one country where hierarchical geography leads to regional inequality. Differential market access can cause as well as accentuate inequality among farmers. Coordination arrangements such as contract farming can improve outcomes for the farmers and integrators on the one hand, but on the other hand it can accentuate inequality if only some regions benefit from it. With this background, in this paper we study the case of contract farming for exports with farmers in remote hilly areas of Nepal. The prospect for contract farming in such areas with accessibility issues owing to underdeveloped markets and lack of amenities is ambiguous. On the one hand, contractors in these areas find it difficult to build links, particularly when final consumers have quality and safety requirements. On the other hand, remoteness can make the contracts more sustainable if the agroecology offers product-specific quality advantages and, more important, if there is a lack of side-selling opportunities. At the same time, concerns remain about buyers’ monopsonistic powers when remotely located small farmers do not have outside options. This study hence quantifies the benefits of contract farming on remotely located farmers’ income and compliance with food safety measures. Results show that contract farming is significantly more profitable (offering a 58 percent greater net income) than independent production, the main pathway being higher price realization, along with training on practices and provision of quality seeds.


Contract Farming for Inclusive Market Access

Contract Farming for Inclusive Market Access
Author: Carlos A. Da Silva
Publisher: Food & Agriculture Organization of the UN (FAO)
Total Pages: 236
Release: 2013
Genre: Business & Economics
ISBN:

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This book aims to typify the extent to which contract farming is helping small farmers to access markets and meet increasingly stringent requirements, not only of "modern" food manufacturers, retailers, exporters and food service firms,by also in non-food sectors such as biofuels and forestry. It also seeks to clarify differences in the functionality of contracts depending on commodity, market, technology, public policies and country circumstances. Conceptual issues are discussed and a series of case study appraisals based on real world examples from developing regions are presented. The issuesraised by the case study authors and the key messages synthesized in the initial book chapter bring new insights and contributions to further enrich knowledge on contract farming as a tool for inclusive market access in development countries.


Small Farmers, Big Business

Small Farmers, Big Business
Author: David Glover
Publisher: Springer
Total Pages: 176
Release: 2016-07-27
Genre: Business & Economics
ISBN: 1349115339

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This book deals with an agricultural production and marketing system known as contract farming (CF). In this system, a public or private agency purchases the crops of independent farmers through contracts, often providing inputs, technical assistance and marketing. CF has a long history in developed countries and has spread to the Third World. The book uses case studies from North America, Latin America and Africa to assess the experience to date and provide guidelines for the use of CF in the future.


Living Under Contract

Living Under Contract
Author: Peter D. Little
Publisher: Univ of Wisconsin Press
Total Pages: 324
Release: 1994
Genre: Business & Economics
ISBN: 9780299140649

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Wracked by poverty, famine, and drought, Africa is typically represented as agriculturally stagnant, backward, and crisis-prone. Living Under Contract, however, highlights the dynamic, changing character of sub-Saharan agrarian systems by focusing on contract farming. A relatively new and increasingly widespread way of organizing peasant agriculture, contract farming promotes production of a wide variety of crops--from flowers to cocoa, from fresh vegetables to rice--under contract to agribusinesses, exporters, and processers. The proliferation of African growers producing under contract is in fact part of broader changes in the global agro-food system. In this examination of agricultural restructuring and its effect upon various African societies, editors Peter Little and Michael Watts bring together anthropologists, economists, geographers, political scientists, and sociologists to explore the origins, forms, and consequences of contract production in several African countries, particularly Kenya, the Gambia, Zimbabwe, and the Ivory Coast. Documenting how contract production links farmers, agribusiness, and the state, the contributors examine problematic aspects of this method of agrarian reform. Their case studies, based on long-term field work and analysis on the village and household level, chart the complex effects of contract production on the organization of work and the labor process, rural inequality, gender relations, labor markets, local accumulation strategies, and regional development. Living Under Contract reveals that contract farming represents a distinctive form in which African growers are incorporated into national and world markets. Contract production, which has been a central feature of the agricultural landscape in the advanced capitalist states, is an emerging strategy for "capturing peasants" and for confronting the agrarian question in the late twentieth century.


Contract Farming: Theory And Practice

Contract Farming: Theory And Practice
Author: Erkan Rehber
Publisher: ICFAI Books
Total Pages: 183
Release: 2007-05-11
Genre: Agricultural contracts
ISBN: 8131406202

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Nowadays, agricultural-food system has been experiencing major changes which are driven mainly by recent developments in consumer preferences and attitudes, technological improvements, food safety issues and related regulations. The advanced agro-food sec


Contract farming and its impact on broiler producers in Lebanon. A systematic review

Contract farming and its impact on broiler producers in Lebanon. A systematic review
Author: Rodrique Kozhaya
Publisher: GRIN Verlag
Total Pages: 16
Release: 2020-07-16
Genre: Technology & Engineering
ISBN: 3346208478

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Academic Paper from the year 2020 in the subject Agrarian Studies, , language: English, abstract: The hypotheses of this thesis is: There is a positive relationship between contract farming and the economic benefits of broiler producers and the development of the broiler sector in Jezzine District. Findings from farmer’s interviews indicated that sustainability, guaranteed price, risk reduction, credit facilities and technical aids are the main reasons for signing a contract. In contrast, Farmers have expressed problems concerning the contractors’ responsibilities such as delay in payment and delivery. Also, when prices are high, it was argued that farmers were selling the products in the open market. This thesis has been realized within the agribusiness sector and experiments the Transaction Cost Theory a branch of the New Institutional Economy which explain market failure caused by many factors. Transaction costs are associated with carrying a transaction between buyers and sellers. This study has been conducted between 2014 and 2017; and has collected data from 11 broiler producers in Jezzine, Lebanon, about: Production costs, capital investment, revenues, land tenure, access to infrastructure, and information about the contract.


Cross-border Contract Farming Arrangement

Cross-border Contract Farming Arrangement
Author: Kanokwan Manorom
Publisher: Asian Development Bank
Total Pages: 101
Release: 2011-10-01
Genre: Business & Economics
ISBN: 9290924446

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This series features the scholarly works supported by the Phnom Penh Plan for Development Management, a region-wide capacity building program of the Asian Development Bank that supports knowledge products and services. It seeks to disseminate research results to a wider audience so that policy makers, implementers, and other stakeholders in the Greater Mekong Subregion can better appreciate and understand the breadth and depth of the region's development challenges.


Handbook on Impact Evaluation

Handbook on Impact Evaluation
Author: Shahidur R. Khandker
Publisher: World Bank Publications
Total Pages: 262
Release: 2009-10-13
Genre: Business & Economics
ISBN: 082138029X

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Public programs are designed to reach certain goals and beneficiaries. Methods to understand whether such programs actually work, as well as the level and nature of impacts on intended beneficiaries, are main themes of this book.