Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation
This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a co...
| Main Authors: | , , , , |
|---|---|
| Format: | Conference Paper |
| Language: | Inglés |
| Published: |
2016
|
| Subjects: | |
| Online Access: | https://hdl.handle.net/10568/147800 |
| _version_ | 1855532943129182208 |
|---|---|
| author | Kumar, Anjani Roy, Devesh Joshi, Pramod Kumar Tripathi, Gaurav Adhikari, Rajendra Prasad |
| author_browse | Adhikari, Rajendra Prasad Joshi, Pramod Kumar Kumar, Anjani Roy, Devesh Tripathi, Gaurav |
| author_facet | Kumar, Anjani Roy, Devesh Joshi, Pramod Kumar Tripathi, Gaurav Adhikari, Rajendra Prasad |
| author_sort | Kumar, Anjani |
| collection | Repository of Agricultural Research Outputs (CGSpace) |
| description | This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and lack of amenities remains ambiguous. On the one hand, contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. On the other hand, lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. At the same time concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India. |
| format | Conference Paper |
| id | CGSpace147800 |
| institution | CGIAR Consortium |
| language | Inglés |
| publishDate | 2016 |
| publishDateRange | 2016 |
| publishDateSort | 2016 |
| record_format | dspace |
| spelling | CGSpace1478002025-11-06T07:01:03Z Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation Kumar, Anjani Roy, Devesh Joshi, Pramod Kumar Tripathi, Gaurav Adhikari, Rajendra Prasad income households lentils smallholders markets monopsonistic pulses contract farming This study is undertaken to quantify the benefits of contract farming (CF) on farmers’ income in a case where new market opportunities are emerging for smallholder farmers in Nepal. CF is emerging as an important form of vertical coordination in the agrifood supply chain. The prospect for CF in a country like Nepal with accessibility issues, underdeveloped markets, and lack of amenities remains ambiguous. On the one hand, contractors find it difficult to build links in these cases, particularly when final consumers have quality and safety requirements. On the other hand, lack of other market opportunities makes the contracts more sustainable. The latter happens if there are product-specific quality advantages because of agroecology and, more important, lack of side-selling opportunities. At the same time concerns remain about monoposonistic powers of the buyers when small farmers do not have outside options. Results of this study show that CF is significantly more profitable (81 percent greater net income) than independent production, the main pathway being higher yield and price realization. The positive impact of CF on farmers’ profits can help Nepal in harnessing the growing demand for pulses, especially in neighboring international markets, like India. 2016-07-26 2024-06-21T09:23:20Z 2024-06-21T09:23:20Z Conference Paper https://hdl.handle.net/10568/147800 en https://hdl.handle.net/10568/147408 Open Access application/pdf Kumar, Anjani; Roy, Devesh; Tripathi, Gaurav; Joshi, Pramod Kumar; and Adhikari, Rajendra Prasad. 2016. Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation. Paper prepared for presentation at the Agricultural & Applied Economics Association's Annual Meeting, Boston, MA, July 31 - August 2, 2016. https://purl.umn.edu/235848 |
| spellingShingle | income households lentils smallholders markets monopsonistic pulses contract farming Kumar, Anjani Roy, Devesh Joshi, Pramod Kumar Tripathi, Gaurav Adhikari, Rajendra Prasad Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title | Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title_full | Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title_fullStr | Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title_full_unstemmed | Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title_short | Impact of contract farming on profits and yield of smallholder farms in Nepal: An evidence from lentil cultivation |
| title_sort | impact of contract farming on profits and yield of smallholder farms in nepal an evidence from lentil cultivation |
| topic | income households lentils smallholders markets monopsonistic pulses contract farming |
| url | https://hdl.handle.net/10568/147800 |
| work_keys_str_mv | AT kumaranjani impactofcontractfarmingonprofitsandyieldofsmallholderfarmsinnepalanevidencefromlentilcultivation AT roydevesh impactofcontractfarmingonprofitsandyieldofsmallholderfarmsinnepalanevidencefromlentilcultivation AT joshipramodkumar impactofcontractfarmingonprofitsandyieldofsmallholderfarmsinnepalanevidencefromlentilcultivation AT tripathigaurav impactofcontractfarmingonprofitsandyieldofsmallholderfarmsinnepalanevidencefromlentilcultivation AT adhikarirajendraprasad impactofcontractfarmingonprofitsandyieldofsmallholderfarmsinnepalanevidencefromlentilcultivation |