Socio-Economic Determinants of the Adoption of Agricultural Contracts: Case of Cashew Farmers in North-Eastern Benin (original) (raw)
Related papers
2018
This study aims to analyze the adoption of agricultural contracts in Northeastern Benin, precisely in the communes of Tchaourou and N'Dali. The data collection was conducted on a sample of 144 producers (including 72 adopting farmers and 72 non-adopters) from the questionnaire. The information obtained was analyzed from the STATA 13 software. The analysis of the determinants of the adoption of agricultural contracts was based on a binary logistic regression model. Thus, the adoption of agricultural contracts by cashew producers is determined by variables such as: the age of the producer, the number of schooling years, the size of the household, the agreement on the quantity of nuts to be delivered under contract, the appreciation of the solidarity guarantee and the assessment of the risks presented by agricultural contracts. These determinants have a positive influence on the adoption of agricultural contracts by cashew producers, with the exception of the producer's assessm...
Le Centre pour la Communication Scientifique Directe - HAL - Archive ouverte HAL, 2019
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Farmers’ Behaviour In Relation To Dynamics In Contracts: The Case Of Cassava Farmers In Ghana
In this study we examine the dynamics of farmers' contract choice in the major and the minor season. Cassava farmers in the Awutu/Effutu/Senya district of the central region of Ghana were examined using a multinomial logit model and we obtained the following results. For the major season; the joint effect of credit and FBO accessibility has shown to positively influence the choice of mixed share contract when the incentive parameter are 20% (by a probability of 115.2) and 80% (by a probability of 31.8). Similarly, the joint effect of household position and marital status positively influence the decision to choose mixed share contract when the incentive parameter is 50% (by a probability of 6.2). Furthermore, farm size (proxy variable for farm income) positively influences the choice of mixed share contract when the incentive parameters are 50% (by a probability of 0.9) and 80% (by a probability of 1.2). Hence it can be deduced that farmers who fit the above characteristics are more risk seeking and likely to embark on a mixed share contract than fixed contract in the major season. On the contrary; the joint effect of household size and size of family labour, and education are reported to negatively influence the choice of contract model when the incentive parameter is 20% by a probability of 5.4 and 38.2 respectively. For the minor season; gender, education, Household position*Marital status, and Household size*Household labour size positively influence the choice of mixed share contracts. The extent of influence (probabilities) are reported as 2.9 for gender (when α=20%); 4.8 and 4.0 for education (when α=20% and 80% respectively); 3.6 and 4.1 for Household position*Marital status (when α=20% and 80% respectively); 138.2 for FBO member*Access to credit (when α=50%); 0.2 for Household size*Size of family labour (when α=20% and 80% respectively). On the contrary; age, education, farm size and FBO member*Access to credit have been reported to have a negative association with the decision to embark on mixed share contracts. The extent of influence reported are 0.3 for age (when α=20% and 80% respectively); 42 for education (when α=50%); 6.8 for FBO member*Access to credit (when α=20%); 6.4 for Household size*Size of family labour (when α=50%).These results have implications for contract design and implementation in food supply chains.
Logistic Analysis of Factors Motivating Smallholder Farmers To Engage In Contract Farming
2016
Contract farming can be viewed as an embedded marketing and financial service mechanism employed by agribusinesses in developing countries to minimize input producers and processors. Most smallholder farmers resources, lack of capacity and quality constraints. On the other hand, agri and reliable supply of adequate amounts and quality raw materials in a timely fa This underlying paradox has given rise to the study, which focuses on the contract relationship between smallholder farmers and fruit processing firms in Ghana. The study sought to analyze the factors that influence farmers t into contracts with processors. A logit model was used to analyze the factors that motivated/influenced smallholder farmers to enter into contracts with processing firms in Ghana. Both random and purposive sampling technique was used to select 140 smallholder farmers (contract and non Ghana. A Friedmans Test ranking showed that the key considerations for farmers to engage in contracts initially were ty...
Socio-economic determinants of adoption of good cashew production practices in Benin Republic
Journal of Agricultural Extension
This study analysed factors that drive producers’ decision to adopt good production practices in cashew production. Data were collected from 395 randomly selected producers from 23 top favourable municipalities (based on criteria such as climate, soil, and disease management) for cashew production in Benin. A multivariate probit regression model was used to estimate the determinants of the adoption of good practices. Findings showed that 70.38% of the cashew producers use firebreaks, 58.23% carried out thinning and 18.48% employed good pest and disease management practices. Overall, the adoption of good agricultural practices in cashew production was negatively influenced by the farm-to-market distance, the sex of the cashew producer and positively correlated with the cashew land size owned; the income from cashew production, membership of a cooperative group, contact with a research agency, participation in agricultural training and perception of good cashew production practices. T...
Journal of Biology Agriculture and Healthcare, 2012
Contract farming can be viewed as an embedded marketing and financial service mechanism employed by agribusinesses in developing countries to minimize input producers and processors. Most smallholder farmers resources, lack of capacity and quality constraints. On the other hand, agri and reliable supply of adequate amounts and quality raw materials in a timely fa This underlying paradox has given rise to the study, which focuses on the contract relationship between smallholder farmers and fruit processing firms in Ghana. The study sought to analyze the factors that influence farmers t into contracts with processors. A logit model was used to analyze the factors that motivated/influenced smallholder farmers to enter into contracts with processing firms in Ghana. Both random and purposive sampling technique was used to select 140 smallholder farmers (contract and non Ghana. A Friedmans Test ranking showed that the key considerations for farmers to engage in contracts initially were type of crop produced, credit support and pr price influenced their continued participation in contracts. The logit analysis indicated that farmers who cultivated small plots of land, had access to labor, and whose farms were furt into contract arrangements with processing firms.
Unlocking the Potential of Contract Farming: Lessons from Ghana
"This paper analyses sorghum contract farming in north-east Ghana in order to explore ways of making such arrangements viable for small farmers. The analysis draws on the convergence of sciences approach, which sees both science and social relations interactions among the relevant stakeholders) as important for developing small farmer-relevant agricultural innovations (technology, procedures, new forms of organisation). The study reveals that the failure and problems encountered in this particular contracting scheme were both technical and institutional. The technical issues were a combination of pest problems, the environment and the sorghum variety chosen. The institutional issues involved the contractual arrangements and relations between the contracting parties. The authors argue that if contracts are to be fair, they must allow for compensation, contingencies and production risks. But scientific knowledge is required in order to adequately incorporate these elements."
Determinants of contract farming for smallholder sunflower producers in northern Uganda
African Crop Science Journal, 2020
Contract farming is a form of vertical coordination, largely aimed at correcting market failures associated with spot markets that arise due to imperfect information. The objective of this study was to assess the determinants of farmer engagement in sunflower (Helianthus annus L.) contracts in northern Uganda. Stratified random sampling was used to select 150 contracted and 150 non-contracted sunflower farmers in Oyam District, from where primary data were collected using a semi-structured questionnaire. A Logistic regression model was used to examine the factors that influenced farmer participation in contract farming. The major determinants of participation in contract farming by smallholder farmers were age (P<0.1), sunflower production experience (P<0.01), access to credit (P<0.01) and unit produce price (P<0.01).Collaborative efforts by all parties engaged in contracting arrangements are necessary to negotiate a minimum price with the farmers, with a possibility to ...
Impact of contract farming on smallholders in Ethiopia: the case of chickpea growers
2016
Contract farming (CF) is an institutional arrangement by which agribusinesses replace or supplement primary agricultural production with supply from smallholders. In developing countries where farms are typically small and resource poor, questions have been asked about its impact on smallholders, particularly the poorest. This study examined these aspects of a Contract Farming Arrangement (CFA) between a chickpea processing firm and a farmers' cooperative union in central Ethiopia. A random sample of 95 growers was drawn from a list of CF participants. In addition, a representative sample of 114 households was drawn from seven counties where the CFA was active. A subset of nonparticipating households with characteristics similar to those of participants was identified as a control group using propensity scores predicted by a logit model. The logit model indicated that the CFA was biased against farmers who were relatively poor, risk averse and short of farming skills and experience. However, there was no evidence that participation was influenced by gender, education, farm size or household labour endowments. Univariate comparisons revealed significant differences in key outcomes between participants and households in the control group. A multivariate 'treatment' model estimated to isolate the impact of the CFA found that participation had a substantial positive impact on household cash revenue (ETB 3,658 per adult equivalent) and net cash income (ETB 3,411 per adult equivalent) earned from crop production. Local Average Treatment Effects (LATEs) computed for 'complier' households were also sizeable for these outcomes at ETB 2,879 and ETB 1,896 per adult equivalent respectively. Participants attributed increases in net income to improved seed, a stable product price, higher yields and a guaranteed market. Descriptive analysis of other perceived outcomes suggested that participants also benefitted from improved food security and better access to preferred markets, credit, new technology, information and technical advice. Levels of satisfaction with the terms and administration of the CFA were high.
The study sought to determine the factors that influence farmers' decision to participate in contract farming as well as the effect of contract farming on farm income in the Northern Region of Ghana. It involved 230 crop farmers selected through multi-stage sampling procedure. A treatment effect model was estimated to determine the factors that influenced farmers' participation in contract farming and its effect on farm income. The factors that positively influenced participation in contract farming were access to extension services and credit. However, farm size and off-farm income negatively influenced participation in contracting. In general, farmers who participated in contract farming had a higher income than their non-participating counterparts. Other factors that significantly influenced farm income positively were land, labour and fertilizers. Weedicide however impacted negatively on income, suggesting that it is being over-used. We recommend that farmers are supported to access the facilities that enable them to participate in contract farming such as credit and extension services. To increase their farm incomes, farmers also need support in increasing the levels of farm inputs such as land, labour and fertilizers. Farmers also need education on the accurate use of weedicides