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Impact of Contract Farming with Farmer Organizations on Farmers’ Income: A Case Study of Reasmey Stung Sen Agricultural Development Cooperative in Cambodia

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  • Sokchea, An
  • Culas, Richard J.

Abstract

This study examines the impact of contract farming with Farmer Organizations on farmers’ income. Contract farming with farmer organizations is a smallholder farmer-inclusive contract farming system. Field surveys were conducted in August 2010 with 75 farmers (including 39 contract farmers) in Kampong Thom province, Cambodia. The analysis—i.e., using a treatment effects model—indicates that contract farming with farmer organizations significantly raises farmers’ income. The econometric model and qualitative data show that the contract farming can attribute to an increase of farming productivity, quality of produce and farming cost efficiency.

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  • Sokchea, An & Culas, Richard J., 2015. "Impact of Contract Farming with Farmer Organizations on Farmers’ Income: A Case Study of Reasmey Stung Sen Agricultural Development Cooperative in Cambodia," Australasian Agribusiness Review, University of Melbourne, Department of Agriculture and Food Systems, vol. 23, March.
    • Handle: RePEc:ags:auagre:262469
    DOI: 10.22004/ag.econ.262469
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    6. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D’Haese, Marijke, 2016. "Effectiveness of contract farming for improving income of smallholder farmers-Preliminary results of a systematic review," 149th Seminar, October 27-28, 2016, Rennes, France 244792, European Association of Agricultural Economists.
    7. Subir Bairagi & Ashok K. Mishra & Anil Giri, 2019. "Good agricultural practices, farm performance, and input usage by smallholders: Empirical evidence from Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 35(3), pages 471-491, July.
    8. Mishra, Ashok K. & Kumar, Anjani & Joshi, Pramod K. & D’Souza, Alwin, 2018. "Impact of contract farming on yield, costs and profitability in low-value crop: evidence from a low-income country," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    9. Prakashan Chellattan Veettil & Yashodha & Judit Johny, 2021. "Group contracts and sustainability: Experimental evidence from smallholder seed production," PLOS ONE, Public Library of Science, vol. 16(8), pages 1-27, August.
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    11. Rabia Mazhar & Bi Xuehao & Thomas Dogot & Rytis Skominas & Vjekoslav Tanaskovik & Hossein Azadi & Zou Wei, 2022. "Contract Farming and Technical Efficiency: A Case of Export-Oriented Organic Rice Farmers in Pakistan," Land, MDPI, vol. 11(11), pages 1-16, November.
    12. Ashok K. Mishra & Anjani Kumar & Pramod K. Joshi & Alwin D'Souza, 2018. "Cooperatives, contract farming, and farm size: The case of tomato producers in Nepal," Agribusiness, John Wiley & Sons, Ltd., vol. 34(4), pages 865-886, October.
    13. Giel Ton & Sam Desiere & Wytse Vellema & Sophia Weituschat & Marijke D'Haese, 2017. "The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 13(1), pages 1-131.
    14. Ton, Giel & Vellema, Wytse & Desiere, Sam & Weituschat, Sophia & D'Haese, Marijke, 2018. "Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?," World Development, Elsevier, vol. 104(C), pages 46-64.
    15. Md. Bokhtiar Hasan & Md. Delowar Hossain & Abu N.M. Wahid, 2018. "Application of Forward Contract and Crop Insurance as Risk Management Tools of Agriculture: A Case Study in Bangladesh," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 8(12), pages 1394-1405, December.
    16. Iro Ibrahim Kutawa, 2016. "Empirical evidence on contract farming in northern Nigeria: Case study of tomato production," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 6(12), pages 240-253, December.
    17. Min‐Han Tsai & Yir‐Hueih Luh, 2023. "Group heterogeneity and the economic effect of farmer organisation participation: Empirical evidence from Taiwan," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(2), pages 473-491, June.
    18. Aristotelis Batzios & Achilleas Kontogeorgos & Fotios Chatzitheodoridis & Panagiota Sergaki, 2021. "What Makes Producers Participate in Marketing Cooperatives? The Northern Greece Case," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    19. Rabia Mazhar & Hossein Azadi & Steven Van Passel & Rando Värnik & Marcin Pietrzykowski & Rytis Skominas & Zou Wei & Bi Xuehao, 2023. "Does Contract Length Matter? The Impact of Various Contract-Farming Regimes on Land-Improvement Investment and the Efficiency of Contract Farmers in Pakistan," Agriculture, MDPI, vol. 13(9), pages 1-16, August.

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