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Contract farming for improving smallholder incomes: What can we learn from effectiveness studies?

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  • Ton, Giel
  • Vellema, Wytse
  • Desiere, Sam
  • Weituschat, Sophia
  • D'Haese, Marijke

Abstract

Contract farming is a sales arrangement between a farmer and a firm, agreed before production begins, which provides the farmer with resources or services. Many governments and donors promote contract farming as part of agricultural development policies. However, there is serious concern whether smaller farmers can benefit from these arrangements.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:wdevel:v:104:y:2018:i:c:p:46-64
    DOI: 10.1016/j.worlddev.2017.11.015
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    4. Khan, Muhammad Fawad & Nakano, Yuko & Kurosaki, Takashi, 2019. "Impact of contract farming on land productivity and income of maize and potato growers in Pakistan," Food Policy, Elsevier, vol. 85(C), pages 28-39.
    5. Ellen Mangnus & A.C.M. (Guus) Van Westen, 2018. "Roaming through the Maze of Maize in Northern Ghana. A Systems Approach to Explore the Long-Term Effects of a Food Security Intervention," Sustainability, MDPI, Open Access Journal, vol. 10(10), pages 1-19, October.
    6. Chaya, Wirawat & Jesdapipat, Sitanon & Tripetchkul, Sudarut & Santitaweeroek, Yuwanan & Gheewala, Shabbir H., 2019. "Challenges and pitfalls in implementing Thailand's ethanol plan: Integrated policy coherence and gap analysis," Energy Policy, Elsevier, vol. 132(C), pages 1050-1063.
    7. Otsuka, Keijiro & Ali, Mubarik, 2020. "Strategy for the development of agro-based clusters," World Development Perspectives, Elsevier, vol. 20(C).
    8. Ola, Oreoluwa & Menapace, Luisa, 2020. "A meta-analysis understanding smallholder entry into high-value markets," World Development, Elsevier, vol. 135(C).
    9. Keijiro Otsuka, 2021. "Strategy for Transforming Indonesian Agriculture," Discussion Papers 2108, Graduate School of Economics, Kobe University.
    10. Kuijpers, Rob, 2020. "Integrated Value Chain Development: Evidence from Bangladesh," Food Policy, Elsevier, vol. 97(C).
    11. Rosegrant, Mark W. & Fan, Shenggen & Otsuka, Keijiro, 2021. "Global issues in agricultural development," IFPRI book chapters, in: Agricultural development: New perspectives in a changing world, chapter 2, pages 35-78, International Food Policy Research Institute (IFPRI).
    12. Chalmers K. Mulwa & Milu Muyanga & Martine Visser, 2021. "The role of large traders in driving sustainable agricultural intensification in smallholder farms: Evidence from Kenya," Agricultural Economics, International Association of Agricultural Economists, vol. 52(2), pages 329-341, March.
    13. Moustier, P., 2018. "Are dragon-head companies heading agricultural development in China? The case of apple chains," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 276037, International Association of Agricultural Economists.
    14. Arya Hadi Dharmawan & Dyah Ita Mardiyaningsih & Heru Komarudin & Jaboury Ghazoul & Pablo Pacheco & Faris Rahmadian, 2020. "Dynamics of Rural Economy: A Socio-Economic Understanding of Oil Palm Expansion and Landscape Changes in East Kalimantan, Indonesia," Land, MDPI, Open Access Journal, vol. 9(7), pages 1-20, July.
    15. Anette Ruml & Matin Qaim, 2021. "New evidence regarding the effects of contract farming on agricultural labor use," Agricultural Economics, International Association of Agricultural Economists, vol. 52(1), pages 51-66, January.
    16. Tamura, Yu, 2021. "Contexts behind differentiated responses to contract farming and large-scale land acquisitions in Central Mozambique: Post-war experiences, social relations, and power balance of local authorities," Land Use Policy, Elsevier, vol. 106(C).
    17. James Wangu & Ellen Mangnus & A.C.M. (Guus) van Westen, 2020. "Limitations of Inclusive Agribusiness in Contributing to Food and Nutrition Security in a Smallholder Community. A Case of Mango Initiative in Makueni County, Kenya," Sustainability, MDPI, Open Access Journal, vol. 12(14), pages 1-23, July.
    18. Delelegne Abera Tefera & Jos Bijman & Maja Slingerland & Gerben Velde & Onno Omta, 2020. "Quality Improvement in African Food Supply Chains: Determinants of Farmer Performance," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(1), pages 152-175, January.
    19. Ruml, Anette & Qaim, Matin, 2020. "Effects of marketing contracts and resource-providing contracts in the African small farm sector: Insights from oil palm production in Ghana," World Development, Elsevier, vol. 136(C).
    20. Bellemare, Marc F. & Bloem, Jeffrey R., 2018. "Does contract farming improve welfare? A review," World Development, Elsevier, vol. 112(C), pages 259-271.
    21. Odountan Ambaliou Olounlade & Gu-Cheng Li & Sènakpon E. Haroll Kokoye & François Vihôdé Dossouhoui & Kuassi Auxence Aristide Akpa & Dessalegn Anshiso & Gauthier Biaou, 2020. "Impact of Participation in Contract Farming on Smallholder Farmers’ Income and Food Security in Rural Benin: PSM and LATE Parameter Combined," Sustainability, MDPI, Open Access Journal, vol. 12(3), pages 1-19, January.
    22. Rob Kuijpers, 2019. "Value Chain Development as Public Policy: Conceptualization and Evidence from the Agri-Food Sector in Bangladesh," LICOS Discussion Papers 41419, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    23. Qiangqiang Zhang & Beibei Yan & Xuexi Huo, 2018. "What Are the Effects of Participation in Production Outsourcing? Evidence from Chinese Apple Farmers," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-15, November.

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