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.
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.
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.
The CDAIS project, funded by the EU and jointly implemented by Agrinatura and FAO, enhances innovation in agriculture by improving the functional capacities of individuals, organizations and systems. It brings partners together and uses continuous learning cycles to address the challenges and opportunities in and around selected ‘innovation niche partnerships’ in eight pilot countries in Central America, Africa and Asia.
The CDAIS project, funded by the EU and jointly implemented by Agrinatura and FAO, enhances innovation in agriculture by improving the functional capacities of individuals, organizations and systems. It brings partners together and uses continuous learning cycles to address the challenges and opportunities in and around selected ‘innovation niche partnerships’ in eight pilot countries in Central America, Africa and Asia.
Le projet CDAIS, financé par l'UE et mis en œuvre par la FAO et Agrinatura, soutient l'innovation agricole par le développement des capacités fonctionnelles des individus et des organisations du système national d'innovation agricole. Dans huit pays pilotes en Amérique Centrale, Afrique et Asie, des démarches, des outils et des competénces sont créées pour accompagner les apprentissages nécessaires à la conduite de projets d'innovation et sont testées dans des Situations d'Innovation Localisées qui ont été sélectionnés.
The CDAIS project, funded by the EU and jointly implemented by Agrinatura and FAO, enhances innovation in agriculture by improving the functional capacities of individuals, organizations and systems. It brings partners together and uses continuous learning cycles to address the challenges and opportunities in and around selected ‘innovation niche partnerships’ in eight pilot countries in Central America, Africa and Asia.
El proyecto CDAIS, implementado por FAO y Agrinatura con el apoyo financiero de la Unión Europea. sostiene la innovación en la agricultura a través del mejoramiento de las capacidades funcionales de los individuos, de las organizaciones y de los sistemas. Reúne a los diferentes socios y utiliza un ciclo de aprendizaje permanente para responder a los desafíos y oportunidades dentro y fuera de los “nichos de innovación” seleccionados en ocho países pilotos de América Central, África y Asia.
The CDAIS project, funded by the EU and jointly implemented by Agrinatura and FAO, enhances innovation in agriculture by improving the functional capacities of individuals, organizations and systems. It brings partners together and uses continuous learning cycles to address the challenges and opportunities in and around selected ‘innovation niche partnerships’ in eight pilot countries in Central America, Africa and Asia.
El proyecto CDAIS, implementado por FAO y Agrinatura con el apoyo financiero de la Unión Europea, sostiene la innovación en la agricultura a través del mejoramiento de las capacidades funcionales de los individuos, de las organizaciones y de los sistemas. Reúne a los diferentes socios y utiliza un ciclo de aprendizaje permanente para responder a los desafíos y oportunidades dentro y fuera de los “nichos de innovación” seleccionados en ocho países pilotos de América Central, África y Asia.