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| 1 |
ID:
148270
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| Summary/Abstract |
This paper examines the class relations emerging in a contract farming scheme in Mozambique. Debates in the literature about contract farming characterise this market arrangement as leading to farmers losing control over production at the hands of capital. By discussing both the drivers and impacts of changes in the division of property and labour, this paper reveals a complex class structure in which the pressure of merchant capital on farmers is internalized within households and transferred onto workers and sharecroppers. This challenges the pertinence of conventional policy that prescribes empowering contract farmers without considering their varied class positions and interests.
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| 2 |
ID:
177381
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| Summary/Abstract |
Using a framework that meshes mechanism design theory and real options analysis, we recover the contract terms that a biomass processing plant would offer a farmer to induce conversion of land to perennial energy crops. We consider three contract terms: performance payment (price per dry ton of biomass), establishment payment (one-time payment per acre planted), and acreage payment (annual payment per acre planted). We find that, in equilibrium, the contract signed by farmers and buyers of Miscanthus (the perennial energy crop of choice in our analysis) uses a combination of all three payments. Conditional on the equilibrium contract, we show how changes in the structure of the Biomass Crop Assistance Program affect cost and risk along the vertical supply chain. Our analysis reveals that subsidies to both establishment and acreage payments are equally cost-effective in reducing production cost of cellulosic biofuels. However, establishment subsidies are more effective at reducing risk for the buyer and, therefore, dominate acreage subsidies from a risk-adjusted cost-effectiveness criterion. This suggests that a larger share of the Biomass Crop Assistance Program budget should be allocated to establishment subsidies to the detriment of matching payments (subsidies to performance payments) and maintenance payments (subsidies to acreage payments).
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| 3 |
ID:
100840
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| 4 |
ID:
120233
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| Publication |
2013.
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| Summary/Abstract |
This paper assesses the impact of contract farming in the oil palm industry in Indonesia on smallholders' well-being and investigates its implication for poverty reduction. Data were collected using random sampling from 245 smallholders in the province of Jambi, Sumatra. A treatment effects model was applied in order to capture endogeneity and selection bias. Results show that participation in contract farming is significantly associated with type of household, age of household head, size of oil palm plot, and the time of plantation establishment. While contract farming has a significant positive effect on smallholder income overall, it discriminates against poorer smallholders. It is recommended that the agro industry and government review contractual arrangements in order to increase the chances of the poor benefiting from oil palm expansion in Indonesia.
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| 5 |
ID:
184130
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| Summary/Abstract |
There are ongoing discourses on contract farming across the world. Contract farming is an issue of serious concern in India today, among farmers as well as policymakers. Such farming among small and marginal farmers, who are facing several problems in agriculture, requires special attention. Considering the large presence of small and marginal farmers and PepsiCo’s Frito-Lay model of potato contract farming in the state of West Bengal, which is India’s second largest producer of potatoes, a study is imperative from the perspective of small and marginal farmers and their participation in potato contract farming. The present paper discusses the nature and extent of participation of small and marginal farmers in potato contract farming in the state. Although participation is qualitative and interpretative in nature, the study considers the attributes which are mainly quantitative or measurable. In order to understand the nature and extent of the participation of small and marginal farmers in contract farming, the study also focuses on the participation of other stakeholders such as vendors and non-marginal and small farmers, and a comparison of socioeconomic conditions between the contract and non-contract farmers is undertaken.
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