IFPRI Conference Paper_Impact of Contract Farming on Profits and Yield of Smallholder Farms in Nepal.pdf (880.25 kB)
Impact of contract farming on profits and yield of smallholder farms in Nepal: an evidence from lentil cultivation
conference contribution
posted on 2023-05-23, 11:52 authored by Kumar, A, Roy, D, Joshi, PK, Tripathi, G, Rajendra AdhikariThis 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.
History
Publication title
Proceedings of the 2016 Agricultural & Applied Economics Association Annual MeetingPagination
1-33Department/School
Tasmanian Institute of Agriculture (TIA)Publisher
Agricultural & Applied Economics AssociationPlace of publication
United States of AmericaEvent title
2016 Agricultural & Applied Economics Association Annual MeetingEvent Venue
Boston, MassachusettsDate of Event (Start Date)
2016-07-31Date of Event (End Date)
2016-08-02Rights statement
Copyright 2016 The AuthorsRepository Status
- Open