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.
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.
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.
How we eat has a major impact on our individual health status, our quality of life and our well-being. Many of the foods we eat have a major social, environmental, climate and animal welfare footprint. This expertise defines policies to promote sustainability in food consumption as policies that integrate all four target dimensions: human health, social aspects, the natural environment (including climate) and animal welfare. Achieving greater sustainability in food consumption poses great challenges.
National governments, especially in sub-Saharan Africa, have limited budgets and are forced to make difficult funding decisions regarding the provision of social services and the support of agricultural programs. These provisions can play a critical role in rural incomes and agricultural production but due to data constraints, the effects of different types of social services on agricultural productivity in this region have not been analyzed in detail.
It is now widely acknowledged that biotechnology will have significant implications for development. While biotechnology’s potential for low income economies is still the subject of controversy, this paper argues that it is precisely in these countries that food and agriculture related biotechnology could efficiently contribute to the achievement of development objectives. To date, however, biotechnological advances have been realized predominantly in industrialized countries.
This paper considers genetically modified (GM) seed adoption decisions by farmers in a developing country under two alternative information regimes (with and without perfect information regarding production conditions) that allows the monopolist producer of GM seeds to either practice perfect discrimination or uniform pricing. Under each regime we analyze two scenarios: when the government can and cannot credibly commit to the announced form of welfare enhancing intervention in the domestic seed market.
Rising global demand for vegetable oil during the last few decades has led to a drastic increase in the land area under oil palm. Especially in South- east Asia, the oil palm boom has contributed to economic growth, but it has also spurred criticism about negative environmental and social effects. Here, we discuss palm oil production and consumption trends and review environmental, economic, and social consequences in different parts of the world. The oil palm expansion has contributed to tropical deforestation and associated losses in biodiversity and ecosystem functions.