Demand for organic basmati rice (OBR), both at home and abroad, coupled with policy reforms in India have given rise to contract farming (CF) production in that nation. OBR production, however, is highly susceptible to weather and pest risks. This study investigates the impact of smallholders’ perceived production risks on their adoption of CF in OBR farming. We also assess the impact of CF in OBR production on yields, prices received, and the livelihood of OBR producers.

This study investigates the impact of contract farming (CF) in baby corn production on yield, irrigation costs, fertilizer costs and usage of chemical fertilizer. We find that adoption of CF by baby corn smallholders, after controlling for characteristics of both control and treatment groups, leads to higher yields and lower spending on fertilizers and irrigation. Additionally, CF in baby corn farming leads to a reduction in the use of chemical fertilizers (Urea and DAP).

This article reviews the literature on contract farming (CF) in India and assesses the impact of smallholders’ perceived production risks on the adoption of CF; the impact of CF on smallholders’ food security; and its impact on employment generation in their farming enterprises. We also show the impact of the outcome variables by risk preference of smallholders. Using farm-level data and endogenous switching regression methods, this study presents three key findings.