“Business as usual” is no longer an option for a food-secure future. Pastoralism can be an innovative system: a time-tested, undervalued alternative to high-input and resource-intensive farming, and a valuable lesson for the much needed evolution towards ‘farming with nature’, with largely-untapped potential for income growth and employment in marginal areas.
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.