Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country

Lentils, a low‐value and highly nutritious crop, are Nepal's largest pulse cash crop. However, the majority of the nation's smallholders produce lentils on very small plots of land. The large gap in lentil yields between Nepal and other lentil‐producing countries underscores the importance of improv...

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Autores principales: Mishra, Ashok K., Kumar, Anjani, Joshi, Pramod Kumar, D'Souza, Alwin
Formato: Journal Article
Lenguaje:Inglés
Publicado: Wiley 2018
Materias:
Acceso en línea:https://hdl.handle.net/10568/147211
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author Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
author_browse D'Souza, Alwin
Joshi, Pramod Kumar
Kumar, Anjani
Mishra, Ashok K.
author_facet Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
author_sort Mishra, Ashok K.
collection Repository of Agricultural Research Outputs (CGSpace)
description Lentils, a low‐value and highly nutritious crop, are Nepal's largest pulse cash crop. However, the majority of the nation's smallholders produce lentils on very small plots of land. The large gap in lentil yields between Nepal and other lentil‐producing countries underscores the importance of improving yields and income of smallholders. When it comes to the financial viability of small farms, particularly in developing countries, and globalisation, contract farming (CF) may prove useful in achieving efficiency and profitability in smallholder lentil farms in Nepal. This study employs the propensity score matching approach to examine the effects of the adoption of CF on yields, profitability and costs of smallholder lentil farms in Nepal. Findings from this study reveal that contrary to popular belief, CF adoption by lentil producers in Nepal has a positive and significant effect on per‐hectare revenues, profits and yield and a negative impact on variable and transportation costs. The study finds that only very smallholder lentil farms (0.01‐0.05 ha) benefit from CF.
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spelling CGSpace1472112025-12-08T10:29:22Z Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country Mishra, Ashok K. Kumar, Anjani Joshi, Pramod Kumar D'Souza, Alwin profitability capacity development lentils crop yield smallholders propensity score matching production costs agricultural economics contract farming Lentils, a low‐value and highly nutritious crop, are Nepal's largest pulse cash crop. However, the majority of the nation's smallholders produce lentils on very small plots of land. The large gap in lentil yields between Nepal and other lentil‐producing countries underscores the importance of improving yields and income of smallholders. When it comes to the financial viability of small farms, particularly in developing countries, and globalisation, contract farming (CF) may prove useful in achieving efficiency and profitability in smallholder lentil farms in Nepal. This study employs the propensity score matching approach to examine the effects of the adoption of CF on yields, profitability and costs of smallholder lentil farms in Nepal. Findings from this study reveal that contrary to popular belief, CF adoption by lentil producers in Nepal has a positive and significant effect on per‐hectare revenues, profits and yield and a negative impact on variable and transportation costs. The study finds that only very smallholder lentil farms (0.01‐0.05 ha) benefit from CF. 2018-10 2024-06-21T09:12:14Z 2024-06-21T09:12:14Z Journal Article https://hdl.handle.net/10568/147211 en Limited Access Wiley Mishra, Ashok K.; Kumar, Anjani; Joshi, Pramod Kumar; and D'Souza, Alwin. 2018. Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country. Australian Journal of Agricultural and Resource Economics 62(4). https://doi.org/10.1111/1467-8489.12268
spellingShingle profitability
capacity development
lentils
crop yield
smallholders
propensity score matching
production costs
agricultural economics
contract farming
Mishra, Ashok K.
Kumar, Anjani
Joshi, Pramod Kumar
D'Souza, Alwin
Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title_full Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title_fullStr Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title_full_unstemmed Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title_short Impact of contract farming on yield, costs and profitability in low‐value crop: Evidence from a low‐income country
title_sort impact of contract farming on yield costs and profitability in low value crop evidence from a low income country
topic profitability
capacity development
lentils
crop yield
smallholders
propensity score matching
production costs
agricultural economics
contract farming
url https://hdl.handle.net/10568/147211
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AT joshipramodkumar impactofcontractfarmingonyieldcostsandprofitabilityinlowvaluecropevidencefromalowincomecountry
AT dsouzaalwin impactofcontractfarmingonyieldcostsandprofitabilityinlowvaluecropevidencefromalowincomecountry