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 focused on one particular contract scheme. Contract characteristics rarely differ within one scheme, so little is known about how different contract characteristics may influence the benefits for smallholders.
This document is designed to help researchers apply RCTs so they can gain a more accurate insight into the impacts of different extension strategies in different locations. It provides information on the benefits of an RCT approach in comparison to other impact evaluation models; provides a step-by-step implementation guide and a framework to avoid challenges; and demonstrates how an RCT approach was implemented within the context of the ‘Mind the Gap’ initiative.
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 income in the oilpalm sector of Ghana, explicitly differentiating between two types of contracts,namely simple marketing contracts and more comprehensive resource-providing contracts.
While several studies have shown that genetically modified Bt cotton can benefit smallholder farmers economically, the sustainability of these effects is still unclear and debated controversially between biotechnology proponents and critics. We use unique panel data of 533 cotton farmers, collected in India between 2002 and 2008, to analyze Bt impacts on cotton yield, profit, and household living standards. Results from fixed effects models show that the adoption of Bt cotton is associated with a net yield gain of 24% and a profit increase of 50%.
Biotechnology offers great potential to contribute to sustainable agricultural growth, food security and poverty alleviation in developing countries. Yet there are economic and institutional constraints at national and international levels that inhibit the poor people's access to appropriate biotechnological innovations.