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.
Productivity growth in smallholder agriculture is an important driver of rural economic development and poverty reduction. However, smallholder farmers often have limited access to information, which can be a serious constraint for increasing productivity. One potential mechanism to reduce information constraints is the public agricultural extension service, but its effectiveness has often been low in the past.
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.
Weak public infrastructure may contribute to poverty and inequality. Studies have found that roads are a key factor affecting rural incomes in developing countries. Yet, there is relatively scant evidence of the economic impacts of rural roads at the individual household level. This study contributes to the literature by empirically analysing the effects of rural road construction on household income and income inequality in Nepal.
There is an emerging body of literature analyzing how smallholder farmers in developing countries can benefit from modern supply chains. However, most of the available studies concentrate on export markets and fail to capture spillover effects that modern supply chains may have onlocal markets. Here, we analyze the case of sweet pepper in Thailand, which was initially introduced as a product innovation in modern supplychains, but which is now widely traded also in more traditional markets.
Agricultural innovations are seen as a key avenue to improve nutrition and health in smallholder farm households. But details of these agriculture-nutrition-health linkages are not yet well understood. While there is a broad literature on the adoption of agricultural technologies, most studies primarily focus on impacts in terms of productivity and income. Nutrition and health impacts have rarely been analyzed. In this article, we argue that future impact studies should include nutrition and health dimensions more explicitly.
The globalisation of agrifood systems is a mega-trend with potentially profound nutritional implications. This paper describes various facets of this globalisation process and reviews studies on nutritional effects with a particular focus on developing countries. Results show that global trade and technological change in agriculture have substantially improved food security in recent decades, although intensified production systems have also contributed to environmental problems in some regions.
This article investigates determinants and impacts of cooperative organization, using the example of smallholder banana farmers in Kenya. Farmer groups are inclusive of the poor, although wealthier households are more likely to join. Employing propensity score matching, we find positive income effects for active group members. Yet price advantages of collective marketing are small, and high-value market potentials have not yet been tapped. Beyond prices, farmer groups function as important catalysts for innovation adoption through promoting efficient information flows.