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Limitations of contract farming as a pro-poor strategy: The case of maize outgrower schemes in upper West Ghana

Policy Papers & Briefs
December, 2017
Western Africa
Sub-Saharan Africa
Africa
Ghana

The focus in this paper is on two relatively large maize-based contract farming (CF) schemes with fixed input packages (Masara and Akate) and a number of smaller and more flexible CF schemes in a remote region in Ghana (Upper West). Results show that these schemes led to improved technology adoption and yield increases. In addition, a subset of maize farmers with high yield improvements due to CF participation had high gross margins. However, on average, yields were not high enough to compensate for higher input requirements and cost of capital.

What is the role of men in connecting women to cash crop markets? Evidence from Uganda

Policy Papers & Briefs
December, 2018
Eastern Africa
Sub-Saharan Africa
Africa
Uganda

Programs that seek to increase women’s participation in marketing activities related to the principal household economic activity must involve men if they are to be successful. In this paper we analyze take-up of a project that sought to increase women’s involvement in sugarcane marketing and sales by encouraging the registration of a sugarcane block contract in the wife’s name. We find that men who are more educated and live in households with higher wealth and expenditures are more likely to agree to the registration.

Nutrition incentives in dairy contract farming in northern Senegal

Policy Papers & Briefs
December, 2017
Western Africa
Sub-Saharan Africa
Africa
Senegal

Health-related incentives to reward effort or commitment are commonplace in many professional contracts throughout the world. Typically absent from small-scale agriculture in poor countries, such incentives may help overcome both health issues for remote rural families and supply issues for firms. Using a randomized control design, we investigate the impact of adding a micronutrient-fortified product in contracts between a Senegalese dairy processing factory and its seminomadic milk suppliers.

Can contract farming in organic basmati rice be a boon to smallholders? Evidence from India

Policy Papers & Briefs
December, 2018
Southern Asia
Asia
India

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.

Contract farming, productivity and fertilizer usage: Empirical evidence from specialty crop production

Policy Papers & Briefs
December, 2018
Southern Asia
Asia
India

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).

Farm and family balance project: Evidence from Uganda

Policy Papers & Briefs
December, 2018
Eastern Africa
Sub-Saharan Africa
Africa
Uganda

This project tests two approaches to increasing women’s integration into and returns from cash crop value chains. We aim to determine whether these interventions affect intrahousehold allocation of resources, decision-making power, consumption and investment, productivity of the cash crop at the household level, and success of contract ful-fillment for the buyer of the crop.

The role of the private sector in food system resilience: Lessons from Cambodia

Policy Papers & Briefs
December, 2018
South-Eastern Asia
Asia
Cambodia

This paper assesses the role of the private sector by using the case study of Cambodia to learn specific lessons for increasing the resilience of food systems in the developing world. In order to develop a sustainable and lasting impact, it is imperative that both market actors and private actors be involved in addressing the new challenges facing vulnerable food systems.

Tobacco contractual arrangements in Malawi and their impact on smallholder farmers: Evidence from Burley Tobacco contracts

Policy Papers & Briefs
December, 2017
Southern Africa
Sub-Saharan Africa
Africa
Malawi

Contract farming is emerging as an important governance structure in certain agricultural value chains. This study was done with the objectives of understanding the contractual relations between buyers and small-scale growers in the tobacco industry in Malawi and the impact of contract farming on smallholder incomes. Cross-sectional data was collected from 211 contract and 109 non-contract smallholder burley tobacco farmers who sold tobacco in the 2012/13 season. Two analyses were undertaken.

Production risks, risk preference and contract farming: Impact on food security in India

Peer-reviewed publication
December, 2018
Southern Asia
Asia
India

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.