In the existing literature, the effects of contract farming on household welfare were examined with mixed results. Most studies looked at single contract types. This paper contributes to the literature by comparing two types of contracts – simple marketing contracts and resource- providing contracts – in the Ghanaian oil palm sector. We investigate the effects of both contracts on farm income, as well as spillovers on other household income sources. We use survey data collected with an innovative sampling design and a control function approach to address possible issues of endogeneity. Both contracts lead to large positive effects on total household income in a similar magnitude, yet through quite different mechanisms. Farmers under the marketing contract use the increase in oil palm profits to transition out of agricultural production and into off-farm employment. Farmers under the resource-providing contract have a stronger dependency on income from oil palm, which is considerably more profitable under the contract. The findings underline that contract characteristics matter for the effects and that disaggregated analysis of different income sources is important to understand the underlying mechanisms.
Smallholder farmers in developing countries often suffer from high risk and limited market access. Contract farming may improve the situation under certain conditions. Several studies analyzed effects of contracts on smallholder productivity and income with mixed results. Most existing studies...
Contract farming has gained in importance in many developing countries. Previous studies analysed effects of contracts on smallholder farmers’ welfare, yet mostlywithout considering that different types of contractual relationships exist. Here, we examine associations between contract farming and farm household...
The purpose of this paper is to map some elements that can contribute to an IFAD strategy to stimulate and support pro-poor innovations. It is an initial or exploratory document that hopefully will add to an ongoing and necessary debate,...
This report describes the 2012 NAIS Assessment was piloted in 4 countries: Botswana, Ghana, Kenya and Zambia. Data were collected through a survey questionnaire, open-ended interview questions, and data mining of secondary sources. A team led by a national coordinator took...
2015 a été une année marquante pour l’avenir de la planète et donc pour l’avenir de chaque femme, chaque homme, chaque enfant, fille ou garçon, aux quatre coins du monde. Deux événements importants – le Sommet des Nations Unies sur...