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Insolvency determinants of the terms of agricultural contracts: The case of rice farmers in Burkina Faso

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  • Sawadogo, Didier
  • Arouna, Aminou
  • Ouedraogo, Souleymane

Abstract

The advantage of contract rice production is that it meets the quality requirements of rice production and satisfies the domestic demand for rice in a country. The objective of this study was to analyse the insolvency criteria of rice farmers’ contracts in Burkina Faso. The field survey involved a random sample of 400 rice farmers. The multivariate model made it possible to analyse the determinants that enable the satisfaction of contract terms and thus ensure the solvency of contracts on the rice plains. The results show that access to credit, access to training and formal contracts significantly affect price, quality and quantity agreements. These analyses thus highlight the importance and relevance of formal contracts to ensure better practice and the solvency of rice contracts.

Suggested Citation

  • Sawadogo, Didier & Arouna, Aminou & Ouedraogo, Souleymane, 2020. "Insolvency determinants of the terms of agricultural contracts: The case of rice farmers in Burkina Faso," African Journal of Agricultural and Resource Economics, African Association of Agricultural Economists, vol. 15(3), September.
    • Handle: RePEc:ags:afjare:307633
    DOI: 10.22004/ag.econ.307633
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    References listed on IDEAS

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