Profits from participation in high value agriculture: Evidence of heterogeneous benefits in contract farming schemes in Southern India
This paper assesses the variable impact of participation in high value agriculture through contract farming arrangements in southern India. Using survey data for 474 farmers in four commodity sectors, gherkins, papaya marigold and broiler, an endogenous switching model is used to estimate net profits from participation. Findings suggest that average treatments effect vary widely across contract commodities. Papaya and broiler contracting offer clear net gains for participants whereas marigold contracting leaves participants worse off. For gherkins, while contracting holds net gains for participating farmers overall, this is true of contracts with some firms but not others. The standard deviations of point estimates of treatment effects are quite large indicating variability in profit gains even within the same commodity sectors. Thus, notwithstanding the sign of average treatment effects, contract farming arrangements have diverse impacts on income for individual farmers and these could have implications for sustained participation of farmers in high value agriculture.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Hope C. Michelson, 2013.
"Small Farmers, NGOs, and a Walmart World: Welfare Effects of Supermarkets Operating in Nicaragua,"
American Journal of Agricultural Economics,
Agricultural and Applied Economics Association, vol. 95(3), pages 628-649.
- Michelson, Hope C., 2012. "Small farmers, NGOs, and a Walmart World: Welfare effects of supermarkets operating in Nicaragua," MPRA Paper 42458, University Library of Munich, Germany.
- Phil Simmons & Paul Winters & Ian Patrick, 2005. "An analysis of contract farming in East Java, Bali, and Lombok, Indonesia," Agricultural Economics, International Association of Agricultural Economists, vol. 33(s3), pages 513-525, November.
- Reardon, Thomas & Gulati, Ashok, 2008. "The supermarket revolution in developing countries: Policies for "competitiveness with inclusiveness"," Policy briefs 2, International Food Policy Research Institute (IFPRI).
- Maertens, Miet & Swinnen, Johan F.M., 2009.
"Trade, Standards, and Poverty: Evidence from Senegal,"
Elsevier, vol. 37(1), pages 161-178, January.
- Maertens, Miet & Swinnen, Johan F.M., 2007. "Trade, Standards and Poverty. Evidence from Senegal," 106th Seminar, October 25-27, 2007, Montpellier, France 7924, European Association of Agricultural Economists.
- Miet Maertens & Johan F.M. Swinnen, 2006. "Trade, Standards, and Poverty: Evidence from Senegal," LICOS Discussion Papers 17706, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Adamchik, Vera A. & Bedi, Arjun S., 2000. "Wage differentials between the public and the private sectors: evidence from an economy in transition," Labour Economics, Elsevier, vol. 7(2), pages 203-224, March.
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2009.
"Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China,"
Elsevier, vol. 37(11), pages 1781-1790, November.
- Miyata, Sachiko & Minot, Nicholas & Hu, Dinghuan, 2007. "Impact of contract farming on income: Linking small farmers, packers, and supermarket in China," IFPRI discussion papers 742, International Food Policy Research Institute (IFPRI).
- Elizaphan J. O. Rao & Bernhard Brümmer & Matin Qaim, 2012. "Farmer Participation in Supermarket Channels, Production Technology, and Efficiency: The Case of Vegetables in Kenya," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 94(4), pages 891-912.
- Rao, Elizaphan J.O. & Qaim, Matin, 2011. "Supermarkets, Farm Household Income, and Poverty: Insights from Kenya," World Development, Elsevier, vol. 39(5), pages 784-796, May.
- Bellemare, Marc F., 2010.
"As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming,"
27259, University Library of Munich, Germany.
- Bellemare, Marc F., 2012. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," World Development, Elsevier, vol. 40(7), pages 1418-1434.
- Bellemare, Marc F., 2010. "As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming," MPRA Paper 23638, University Library of Munich, Germany.
- Bart Minten & Lalaina Randrianarison & Johan F.M. Swinnen, 2006.
"Global Retail Chains and Poor Farmers: Evidence from Madagascar,"
LICOS Discussion Papers
16406, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Minten, Bart & Randrianarison, Lalaina & Swinnen, Johan F.M., 2009. "Global Retail Chains and Poor Farmers: Evidence from Madagascar," World Development, Elsevier, vol. 37(11), pages 1728-1741, November.
- Cadot, Olivier & Dutoit, Laure & Olarreaga, Marcelo, 2005.
"How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?,"
CEPR Discussion Papers
5392, C.E.P.R. Discussion Papers.
- Olivier Cadot & Laure Dutoit & Marcelo Olarreaga, 2005. "How Costly is it for Poor Farmers to Lift Themselves out of Subsistence?," Cahiers de Recherches Economiques du Département d'Econométrie et d'Economie politique (DEEP) 05.09, Université de Lausanne, Faculté des HEC, DEEP.
- Foster, William E. & Rausser, Gordon C., 1990.
"Farmer behavior under risk of failure,"
CUDARE Working Paper Series
488R, University of California at Berkeley, Department of Agricultural and Resource Economics and Policy.
- Foster, Williams E. & Rausser, Gordon C., 1990. "Farmer behavior under risk of failure," Department of Agricultural & Resource Economics, UC Berkeley, Working Paper Series qt5kk2g186, Department of Agricultural & Resource Economics, UC Berkeley.
- Justo Manrique & Kalu Ojah, 2003. "The demand for housing in Spain: an endogenous switching regression analysis," Applied Economics, Taylor & Francis Journals, vol. 35(3), pages 323-336.
- Narrod, Clare & Roy, Devesh & Okello, Julius & Avendaño, Belem & Rich, Karl & Thorat, Amit, 2009. "Public-private partnerships and collective action in high value fruit and vegetable supply chains," Food Policy, Elsevier, vol. 34(1), pages 8-15, February.
- Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LP, vol. 4(3), pages 282-289, September.
- Tripathi, R.S. & Singh, Ram & Singh, Sube, 2005. "Contract Farming in Potato Production: An Alternative for Managing Risk and Uncertainty," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 18(2005).
- Barrett, Christopher B. & Bachke, Maren E. & Bellemare, Marc F. & Michelson, Hope C. & Narayanan, Sudha & Walker, Thomas F., 2010. "Smallholder Participation in Agricultural Value Chains: Comparative Evidence from Three Continents," MPRA Paper 27829, University Library of Munich, Germany.
- Lee, Lung-Fei, 1978. "Unionism and Wage Rates: A Simultaneous Equations Model with Qualitative and Limited Dependent Variables," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 19(2), pages 415-33, June.
- Birthal, Pratap S. & Joshi, P. K. & Gulati, Ashok, 2005. "Vertical coordination in high-value commodities," MTID discussion papers 85, International Food Policy Research Institute (IFPRI).
When requesting a correction, please mention this item's handle: RePEc:eee:jfpoli:v:44:y:2014:i:c:p:142-157. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shamier, Wendy)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.