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.
New plant breeding technologies (NPBTs), including genetically modified and gene-edited crops, offer large potentials for sustainable agricultural development and food security while addressing shortcomings of the Green Revolution. This article reviews potentials, risks, and actually observed impacts of NPBTs. Regulatory aspects are also discussed. While the science is exciting and some clear benefits are already observable, overregulation and public misperceptions may obstruct efficient development and use of NPBTs.
Background
Weather risk is a serious issue in the African small farm sector that will further increase due to climate change. Farmers typically react by using low amounts of agricultural inputs. Low input use can help to minimize financial loss in bad years, but is also associated with low average yield and income. Increasing small farm productivity and income is an important prerequisite for rural poverty reduction and food security. Crop insurance could incentivize farmers to increase their input use, but indemnity-based crop insurance programs are plagued by market failures.
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.