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.
Structural transformation of agriculture typically involves a gradual increase of mean farm sizes and a reallocation of labor from agriculture to other sectors. Such structural transformation is often fostered through innovations in agriculture and newly emerging opportunities in manufacturing and services. Here, we use panel data from farm households in Indonesia to test and support the hypothesis that the recent oil palm boom contributes to structural transformation. Oil palm is capital-intensive but requires much less labor per hectare than traditional crops.
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.