Empirical evidence on contract farming in northern Nigeria: Case study of tomato production

Abstract

This study contributes to the scarce empirical evidence on contract farming in Northern Nigeria using a case study of tomato production. Using data from five Local Government Areas of Kano State in Northern Nigeria, a total of 116 tomato contract farmers and 84 non contract farmers were selected. The econometric result indicated that there was a high level of participation in contract farming. Participation in contract farming generated desirable causal effects on transaction costs, productivity, tomato income, total household income and poverty status of the farmers and this implies that the contract farming arrangement is very appealing to the farmers currently engaged in contract farming. The major factors that swayed the farmers' decision to engage in contract farming were education, farm size and extension indicating that these variables are key policy variables that could be leveraged to influence participation in contract farming in the study area. The study may give detailed information on how contract and noncontract tomato production is currently functioning in northern Nigeria.

Achieving Sustainable Development Goals in the global food sector: A systematic literature review to examine small farmers engagement in contract farming

“…Farm structure and farm characteristics are also equated with smallholder participation in contract farming programs. In particular, farm size, farmer productive assets, land tenure, and farm location (Andersson et al, ; Ito, Bao, & Su, ; Kutawa, ; Maertens & Vande‐Velde, ; Mwambi et al, ) are examined more frequently than others.…”

“…Andersson et al, 2015;Ito, Bao, & Su, 2012;Kutawa, 2016;Maertens & Vande-Velde, 2017;Mwambi et al, 2016) are examined more frequently than others.…”

Farmers’ Perception on Contract Farming in the Post-COVID Era: Empirical Study in Greece

“…Farm size, smallholder's age, education, and participation in farm groups are also indicated by Simmons et al [32] in their analysis of contract farming. According to Nsimbila [33], adopting CF is affected by gender, age, and experience in cultivation among other factors.On the other hand, education, farm size, and extension are factors that swayed the farmers' decision to engage in CF [34]. Finally, geography and local government policies are relevant [15,35].…”

Impact of Contract Farming on Productivity and Food Security Status of Smallholder Maize Farmer’s Households in Kano and Kaduna States, Nigeria

“…It is also basically an arrangement that establish agreement between processing/marketing firms and smallholder farmers for production and supply of food and commercial crops base on predetermine future quality and price (Bellamere and Novak, 2017). Models of contract farming play major role on welfare of smallholder farmers by increasing their crop productivity through delivering better technology, coordinating producer's and consumer's market along with strong grass-root linkages (Iro, 2016).…”

“…Contract farming in Africa and Asia is mainly promoted by private sector with little support from public institution. In Nigeria there are few emerging evidences of contract farming (Miet and Katrein 2017; Fawale and Thomas 2014;Iro 2016;Oluesegun, 2016). The existing once are mostly owned by the private companies/individuals as an out grower schemes and few by the Government such as Anchor borrowers Scheme; that is aim at giving input credit to facilitate the production of staple and cash crop in the country.…”