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Contract farming in developing countries: Theory, practice, and policy implications

In: Innovation for inclusive value-chain development: Successes and challenges

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  • Minot, Nicholas
  • Sawyer, Bradley

Abstract

Chapter 4 (Minot and Sawyer) provides clarity on the opportunities and limitations of contract farming as an institution that facilitates agricultural intensification by smallholders. They find that contract farming is more viable in value chains of fruits and vegetables for quality-sensitive markets, commercial dairy and poultry production, and certain cash crops (for example, tea, tobacco, sugarcane, and cotton). In terms of income benefits for smallholders, most case studies found considerable increases in income, in the range 25–75 percent.

Suggested Citation

  • Minot, Nicholas & Sawyer, Bradley, 2016. "Contract farming in developing countries: Theory, practice, and policy implications," IFPRI book chapters, in: Devaux, André & Torero, Maximo & Donovan, Jason & Horton, Douglas E. (ed.), Innovation for inclusive value-chain development: Successes and challenges, chapter 4, pages 127-158, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifpric:9780896292130-04
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    References listed on IDEAS

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    Cited by:

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    2. Ragasa, Catherine & Lambrecht, Isabel & Kufoalor, Doreen S., 2018. "Limitations of Contract Farming as a Pro-poor Strategy: The Case of Maize Outgrower Schemes in Upper West Ghana," World Development, Elsevier, vol. 102(C), pages 30-56.
    3. Lambrecht, Isabel Brigitte & Ragasa, Catherine, 2018. "Do development projects crowd-out private sector activities? Evidence from contract farming participation in Northern Ghana," Food Policy, Elsevier, vol. 74(C), pages 9-22.
    4. Anette Ruml & Catherine Ragasa & Matin Qaim, 2022. "Contract farming, contract design and smallholder livelihoods," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 66(1), pages 24-43, January.
    5. Soullier, Guillaume & Moustier, Paule, 2018. "Impacts of contract farming in domestic grain chains on farmer income and food insecurity. Contrasted evidence from Senegal," Food Policy, Elsevier, vol. 79(C), pages 179-198.
    6. Mohamed Abouaziza, 2022. "Farmer constraints and relational contracts: evidence from agricultural value chains in East Africa," Economics PhD Theses 0122, Department of Economics, University of Sussex Business School.

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