Inclusiveness of contract farming along the vertical coordination continuum: Evidence from the Vietnamese rice sector

Ba, Hélène Aminatou; Mey, Yann de; Thoron, Sylvie; Demont, Matty

doi:10.1016/j.landusepol.2019.104050

Cited by 69 publications

(50 citation statements)

References 43 publications

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“…Furthermore, large household size provided more labor since CF is labor intensive on the farmer part (Swain, 2012). In addition, farmers with large household size tended to participate in resourceproviding contract such as broiler CF (Ba et al, 2019). However, in a marketing contract, household size appeared to have insignificant effect to farmers' participation in CF (Bellemare and Bloem, 2018).…”

Section: Resultsmentioning

confidence: 99%

Risk Aversion, Risk Preference and Farmers’ Decision to Participate in Broiler Contract Farming: A Case Study in Jember, Indonesia

Rondhi

Aji

Khasan

et al. 2020

Caraka Tani J. Sustain. Agric.

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<p>The demand for broiler is rising rapidly due to its capability as the main animal protein source. In contrast, the production of broiler meat is unstable due to the possibility of farm risk. Contract Farming (CF) is one of the risk management tools for farmers but has not been used effectively. The purpose of this study was to analyze the factors that influence farmers’ decision to participate in CF. The analysis used six independent variables, namely farmer’s age, farm size, household size, education, farmer’s risk preference and risk aversion level. This study used primary data from 70 broiler farmers in Jember, which were divided into two groups, contract farmer and independent farmer. Each group had the same number of respondents. The results show that five among six independent variables significantly affected farmers’ decision to take part in CF. Farmer’s age decreased farmer’s probability to participate in CF, while education, farm size, household size and risk preference had positive effects. Farmer’s risk aversion level did not have any significant effect. The results suggest that the effort to expand CF participation should focus on young and educated farmers with large farm size.</p>

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Section: Resultsmentioning

confidence: 99%

Risk Aversion, Risk Preference and Farmers’ Decision to Participate in Broiler Contract Farming: A Case Study in Jember, Indonesia

Rondhi

Aji

Khasan

et al. 2020

Caraka Tani J. Sustain. Agric.

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“…Contract farming-a preharvest agreement between farmers and buyers-is commonly understood as a useful tool to mitigate prevalent market failures and to reduce the risks facing smallholder farmers (6)(7)(8). Contract farming is therefore promoted by policy makers and development agencies (9,10). Contract farming is not a new phenomenon (8,11); the globalization of agricultural trade and the rapid modernization of agricultural value chains in developing countries (5), however, has generated renewed interest in the topic.…”

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confidence: 99%

Smallholder farmers and contract farming in developing countries

Meemken

Bellemare

2019

Proc. Natl. Acad. Sci. U.S.A.

160

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Poverty is prevalent in the small-farm sector of many developing countries. A large literature suggests that contract farming—a preharvest agreement between farmers and buyers—can facilitate smallholder market participation, improve household welfare, and promote rural development. These findings have influenced the development policy debate, but the external validity of the extant evidence is limited. Available studies typically focus on a single contract scheme or on a small geographical area in one country. We generate evidence that is generalizable beyond a particular contract scheme, crop, or country, using nationally representative survey data from 6 countries. We focus on the implications of contract farming for household income and labor demand, finding that contract farmers obtain higher incomes than their counterparts without contracts only in some countries. Contract farmers in most countries exhibit increased demand for hired labor, which suggests that contract farming stimulates employment, yet we do not find evidence of spillover effects at the community level. Our results challenge the notion that contract farming unambiguously improves welfare. We discuss why our results may diverge from previous findings and propose research designs that yield greater internal and external validity. Implications for policy and research are relevant beyond contract farming.

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“…This is particularly true for economic evaluations of new lines for their cost-effectiveness and agronomic risks. These are important to farmer adoption decisions and hence should become part of routine breeding assessments [44]. Overall, it is crucial to…”

Section: Trends In Plant Sciencementioning

confidence: 99%