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Despite more than a decade of NGO and government activities promoting developing world farmer participation in high‐value agricultural markets, evidence regarding the household welfare effects of such initiatives is limited. This article analyzes the geographic placement of supermarket supply chains in Nicaragua between 2000 and 2008 and uses a difference‐in‐differences specification on measures of supplier and nonsupplier assets to estimate the welfare effects of small farmer participation. Though results indicate that selling to supermarkets increases household productive asset holdings, they also suggest that only farmers with advantageous endowments of geography and water are likely to participate.

In Nicaragua and elsewhere in Central America, small-scale farmers are weighing the risks of entering into contracts with supermarket chains. We use unique data on negotiated prices from Nicaraguan farm cooperatives supplying supermarkets to study the impact of supply agreements on producers' mean output prices and price stability. We find that prices paid by the domestic retail chain approximate the traditional market in mean and variance. In contrast, we find that mean prices paid by Wal-mart are significantly lower than the traditional market but that Wal-Mart systematically reduces price volatility compared with the traditional market. We find some evidence, however, that farmers may be paying too much for this contractual insurance against price variation.

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Though extension services have long since proved their value to agricultural production and farmer prosperity, their record in sub‐Saharan Africa has been mixed. To study the impact of such programs on farmers' learning about agricultural technologies, we implemented a quasi‐randomized controlled trial and collected detailed panel data among Malawian farmers. Based on those findings, we develop a two‐stage learning framework, in which farmers formulate yield expectations before deciding on how much effort to invest in learning about these processes. Using data centered on farmer beliefs, knowledge, and constraints, we find evidence that beliefs about potential yields hinge on first‐hand and local experience, and that these beliefs significantly impact learning efforts. Consistent with this, we find that farmers who participated in season‐long, farmer‐led demonstration plot cultivation plan to adopt more components of new multi‐component technology, compared to farmers who were invited to attend only field‐day events.