Economic and environmental benefits of sunflower contract farming: Evidence from a Greek region

Abstract

Contract farming involves agricultural production carried out on the basis of an agreement between buyers and producers. The aim of the research is to study the extent to which contract farming affects the income of producers. In addition, to study the indicators for the choice of contract cultivation. A quantitative, descriptive and correlational survey was conducted using an original questionnaire which consisted of closed-ended, open-ended and multiple-choice questions. In the present research 306 producers of South Evros have participated with the majority being over 45 years old, married and graduates of secondary education. The statistical analysis was performed at a significance level of 5%, using the regression and correlational analysis. The 83.4% of the respondents (N=255) stated that their income was significantly affected by their involvement in contract farming, while the 75.3% (N=183) noticed a positive effect. The decision to choose contract farming (with ? 5% statistical significance) was affected by profits, the ability to repay debts, the income influence and the positive income influence. The impact of contract farming on incomes was high and positive. Most of the respondents who were willing to choose contract farming were farmers who have seen an increase in profits, a significant and positive impact on incomes, and those who were able to repay their debts. Key words: Contract farming, contract cultivation of sunflower, water resources for irrigation, income, revenue, prefecture of Evros.