Policy brief No. 2. The majority of the world’s poor are smallholder farmers in developing countries. These smallhol- ders face several obstacles that limit their produc- tivity and profits, such that their incomes remain low. Institutional changes in the agricultural value chains are required to reduce poverty rates among smallholder farmers, and to stimulate agricultural growth.
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.
Despite efforts over recent years to improve the status of agriculture in sub-Saharan Africa, little change has been noted, due partially to the fact that efforts have come from individual entities, which had short-term funding or lacked the necessary expertise to scale up research outputs. Disconnect between researchers and end-users has further hindered the success of such efforts.
Malgré les efforts déployés ces dernières années pour améliorer la situation de l’agriculture en Afrique subsaharienne, peu de changements ont été observés. Cet insuccès est dû, en partie, au fait que ces efforts ont été consentis par diverses entités de petite taille, aux capacités de financement à court terme et sans l’expertise nécessaire pour diffuser les résultats de leurs travaux de recherche. De plus, ces initiatives ont aussi pâti de la déconnexion entre la recherche et les utilisateurs finaux.