Effect of contract farming on the U.S. crop farmers' average return

Hu, Wen‐Chen

doi:10.17221/100/2012-agricecon

Cited by 13 publications

(17 citation statements)

References 16 publications

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“…The implication of the results from the regression may be that CF has a positive effect on profitability of rice growers in the study area. This finding is also consistent with earlier studies by Mishra, et al (2018), Hu (2013) and Bolwig et al (2009). Table 4 also reports the full regression results for different outcome indicators including average variable cost, selling price, average return and average rate of return.…”

Section: Estimated Effect Of Contract Farming On Profitability Of Ricsupporting

confidence: 88%

“…Many studies show that contract farming improve largely farm productivity and households income or welfare such as those by Girma and Gardebroek (2015), Naryananan, (2014), Dedehouanou et al (2013), Cahyadi and Waibel (2013), Bellemare (2012), Maertens and Swinnen (2009), Miyata et al (2009), Minten et al (2009), and Bolwig et al (2009). However, few studies have estimated the effect of CF on profitability (Hu, 2013). In addition, most CF studies have examined high-value products including industrial crops, horticulture, poultry, and dairy, but rarely staple foods (Maertens and Velde, 2017;Minot, 1986).…”

Section: Introductionmentioning

confidence: 99%

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Contract Farming and Profitability: Evidence from Rice Crop in the Central Mekong Delta, Vietnam

Nhan

Tsutsumi

2019

AOL

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This study aims at investigating profitability of rice contract farming in Vietnam's Mekong delta. We used data from a farm-household survey comprising of 70 contract and 96 noncontract respondents, and apply the Student's t-test and ordinary least square regression model for data analysis. We found that farmers with larger rice plantations are unlikely to engage in contract farming, and that market outlets and output price for contract growers tend to be ensured compared with noncontract ones. The findings reveal that contract farming has a significantly positive impact on rice-farming profitability in terms of average return and average rate of return on variable cost when controlling for observable characteristics of household and farm. The results suggest that contract farming may enable rice farmers to raise their rice income as well as household income. The policy implication may be that contract farming may not be feasible for all rice farmers and rice business firms.

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Section: Estimated Effect Of Contract Farming On Profitability Of Ricsupporting

confidence: 88%

Section: Introductionmentioning

confidence: 99%

Contract Farming and Profitability: Evidence from Rice Crop in the Central Mekong Delta, Vietnam

Nhan

Tsutsumi

2019

AOL

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“…The negative effect on technical efficiency may be attributed among other factors to increased input prices and harvesting of canes before maturity. On the contrary, the results by Hu (2013) and Igweoscar (2014) showed a positve and significant effect of contract engagement on technical efficiency. This variable therefore needs more investigation since farmers enter into contract engagement with the aim of increasing their productity which the current study has revealed otherwise.…”

Section: Factors Affecting Technical Efficiency Among Sugarcane Farmersmentioning

confidence: 88%

Technical efficiency and its determinants in sugarcane production among smallholder sugarcane farmers in Malava sub-county, Kenya

Ambetsa¹,

Mwangi²,

Ndirangu³

2020

Afr. J. Agric. Res.

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The aim of the study was to determine the farm level technical efficiency and its determinants among smallholder sugarcane farmers in Malava Sub-county, Western Kenya. Primary data were collected using questionnaires from a sample of 384 farmers through systematic random sampling. The study applied stochastic frontier analysis and Tobit regression analysis using computer software STATA. The results found that technical efficiency of sugarcane farmers ranges from almost zero to 0.9829, with mean value of 0.7069, implying that an average farmer could increase sugarcane productivity by 29.31% at the existing level of resources. Maximum likelihood estimate of technical efficiency depicted that the use of fertilizer, labour, seed-cane and farm size are positive and significant at 1% level in determining technical efficiency. Tobit regression analysis showed that education, farming experience, family size, credit access and extension services were positive and significant in contributing to technical efficiency. However, age of the farmer, farm distance from home and contract engagement was negatively influencing technical efficiency. The study recommends the Kenyan government to formulate policies that ensure provision of quality extension services, increased credit access and education among smallholder sugarcane farmers. The results also recommended the need for a review of the existing contract engagement policies among sugarcane farmers.

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“…In terms of contract farming, PSM is used to investigate infl uences of contract farming on crop productivity and income of farmers (Ragasa et al, 2018;Mulatu et al, 2017;Mwambi et al, 2016;Hu, 2013).…”

Section: Theoretical and Empirical Frameworkmentioning

confidence: 99%

Does Contract Farming Enhance Income of Farmers? Evidence in Tea Production of Vietnam

Nguyen

2020

J Agric Sciences

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Purpose: The theme of eff ects of contract farming on income of farmers has been strongly debated by scholars in recent years, especially in developing countries. This article attempts to investigate the infl uence of contract farming on the income of farmers in tea production in Phu Tho province of Vietnam. Research Method: Primary data for the study is gathered by a cross-sectional survey on 358 tea farmers in fi ve districts of Phu Tho province between March and June 2016. Propensity score matching is employed to assess eff ects of contract participation on income of tea farmers in Phu Tho province, Vietnam. Findings: Our results suggest that contract farming can have a minor positive impact on farmers' incomes. The average income of contracted farmers is found to be higher than that of their counterparts by about US$720 per year. Due to this small diff erence of income, contract farming plays an important role in procuring leaf tea, stabilising prices of leaf tea and generating employment rather than enhancing income for tea farmers. Originality/value: The research contributes to the empirical work by providing an evidence on infl uences of contract farming on income of tea farmers as well as reexamining the importance of contract farming to improving livelihood of tea farmers in Phu Tho province, Vietnam.

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Effect of contract farming on the U.S. crop farmers' average return

Cited by 13 publications

References 16 publications

Contract Farming and Profitability: Evidence from Rice Crop in the Central Mekong Delta, Vietnam

Contract Farming and Profitability: Evidence from Rice Crop in the Central Mekong Delta, Vietnam

Technical efficiency and its determinants in sugarcane production among smallholder sugarcane farmers in Malava sub-county, Kenya

Does Contract Farming Enhance Income of Farmers? Evidence in Tea Production of Vietnam

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