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Abstract
Discrepancies in certification effects on smallholder incomes have been found in scientific literature. Unobserved farmer-group heterogeneity is a likely reason. For the long-standing Robusta coffee farmer-groups in Uganda, we find no significant effect of certification on net-farm income. But, we find 20 percentage point differences in net-farm income between certified and non-certified farmers explained by membership duration. In contrast, the recently founded certified Arabica coffee farmer-groups have positive net-farm income effects of 151 per cent, partly explained by a higher degree of vertical integration. With or without certification, long-standing group membership is found to have positive income effects.
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