Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/213073
Authors: 
Ruml, Anette
Qaim, Matin
Year of Publication: 
2020
Series/Report no.: 
GlobalFood Discussion Papers 139
Abstract: 
Contract farming is typically seen as a useful mechanism to help smallholders. However, despite economic benefits, high dropout rates from contract schemes are commonplace. We use data from Ghana to show that smallholders benefit from a resource-providing contract in terms of higher yields and profits, but most of them still regret their decision to participate and would prefer to exit if they could. The main problem is insufficient information from the company. Farmers do not understand all contract details, which leads to mistrust. We argue that lack of transparency may explain high dropout rates in Ghana and other situations too.
Subjects: 
contract farming
continuity
attrition
information
transparency
JEL: 
L29
L49
O12
O13
Q13
Document Type: 
Working Paper

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