Contract farming and rural transformation: Evidence from a field experiment in Benin

Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice pro...

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Detalles Bibliográficos
Autores principales: Arouna, A., Michler, J.D., Lokossou, Jourdain C.
Formato: Journal Article
Lenguaje:Inglés
Publicado: Elsevier 2021
Materias:
Acceso en línea:https://hdl.handle.net/10568/113905
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author Arouna, A.
Michler, J.D.
Lokossou, Jourdain C.
author_browse Arouna, A.
Lokossou, Jourdain C.
Michler, J.D.
author_facet Arouna, A.
Michler, J.D.
Lokossou, Jourdain C.
author_sort Arouna, A.
collection Repository of Agricultural Research Outputs (CGSpace)
description Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice production in Benin. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own.
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spelling CGSpace1139052024-03-06T10:16:43Z Contract farming and rural transformation: Evidence from a field experiment in Benin Arouna, A. Michler, J.D. Lokossou, Jourdain C. rice farming systems contract farming Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice production in Benin. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own. 2021-06 2021-06-08T15:50:04Z 2021-06-08T15:50:04Z Journal Article https://hdl.handle.net/10568/113905 en Open Access Elsevier Arouna A., Michler J.D., Lokossou J.C.Contract farming and rural transformation: Evidence from a field experiment in Benin.Journal of Development Economics.2021,Volume 151:102626
spellingShingle rice
farming systems
contract farming
Arouna, A.
Michler, J.D.
Lokossou, Jourdain C.
Contract farming and rural transformation: Evidence from a field experiment in Benin
title Contract farming and rural transformation: Evidence from a field experiment in Benin
title_full Contract farming and rural transformation: Evidence from a field experiment in Benin
title_fullStr Contract farming and rural transformation: Evidence from a field experiment in Benin
title_full_unstemmed Contract farming and rural transformation: Evidence from a field experiment in Benin
title_short Contract farming and rural transformation: Evidence from a field experiment in Benin
title_sort contract farming and rural transformation evidence from a field experiment in benin
topic rice
farming systems
contract farming
url https://hdl.handle.net/10568/113905
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AT michlerjd contractfarmingandruraltransformationevidencefromafieldexperimentinbenin
AT lokossoujourdainc contractfarmingandruraltransformationevidencefromafieldexperimentinbenin