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. Here, we address this research gap using data from oil palm farmers in Ghana who participate in different contract schemes. Some of the farmers have simple marketing contracts, while others have resource-providing contracts where the buyer also offers inputs and technical services on credit. A comparison group cultivates oil palm without any contract. Regression models that control for selection bias show that resource-providing contracts increase farmers‟ input use and yield. Resourceproviding contracts also incentivize higher levels of specialization and an increase in the scale of production. These effects are especially pronounced for small and medium-sized farms. In contrast, the marketing contracts have no significant effects on input use, productivity, and scale of production. The results suggest that resource-providing contracts alleviate market access constraints, while the marketing contracts do not.
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...
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...
Presented at the ‘Building Livelihoods Resilience in a Changing Climate’ conference, Kuala Lumpur, 3-5th March 2011, this paper focuses on the Local Adaptive Capacity framework (LAC), developed under the Africa Climate Change Alliance Project (ACCRA), as an innovative initiative that...
Le principal message qui est ressorti de la consultation est que l'agriculture familiale apportait une contribution cruciale aux secteurs agricole et halieutique et à la sécurité alimentaire de la région et, qu'à ce titre, les mesures de soutien de cette...
Integrated soil fertility management (ISFM) has been promoted by research and philanthropic organizations as well as governments in an attempt to increase crop yields and improve livelihoods of smallholder farmers in Africa. As this has largely been a continent-wide initiative, it is surprising...
