Abstract
The effectiveness of contract farming for raising income of smallholder farmers in low‐ and middle‐income countries: a systematic review
Highlights
Contract farming is used by an increasing number of firms as a preferred modality to source products from smallholder farmers in low and middle-income countries
All studies are cross-sectional studies that assess the effectiveness of the contractual arrangement at one moment in time, but only after the contractual arrangements had been in place for some years when these had already survived the start-up problems
This implies that contractual arrangements that had ceased to function are absent in the literature
Summary
Contract farming is used by an increasing number of firms as a preferred modality to source products from smallholder farmers in low and middle-income countries. Economies of scale in production or land ownership rights are common incentives for firms to offer contractual arrangements to farmers. “a contractual arrangement for a fixed term between a farmer and a firm, agreed verbally or in writing before production begins, which provides material or financial resources to the farmer and specifies one or more product or process requirements for agricultural production on land owned or controlled by the farmer, which gives the firm legal title to (most of) the crop or livestock" (Adapted from Prowse, 2012:12). The objective of this systematic review was to distill generalised inferences from this rapidly growing body of evidence
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