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      Contract farming and rural transformation: Evidence from a field experiment in Benin

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          Abstract

          Contract farming has emerged as a popular mechanism to encourage vertical coordination in developing country agriculture. Yet, there is a lack of consensus on its ability to spur structural transformation in rural economies. We present results from a field experiment on contract farming for rice production in Benin. While all contracts have positive effects on welfare and productivity measures, we find that the simplest contract has impacts nearly as large as contracts with additional attributes. This suggests that once price risk is resolved through the offer of a fixed-price contract, farmers are able to address other constraints on their own.

          Highlights

          • We describe evidence from the first RCT on contract farming in a developing country.

          • All contracts have positive effects on welfare and productivity measures.

          • The simplest contract has impacts nearly as large as contracts with additional attributes.

          • Results suggests that once price risk is resolved farmers are able to address other constraints on their own.

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          Most cited references71

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          Experimental Analysis of Neighborhood Effects

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            Multiple Inference and Gender Differences in the Effects of Early Intervention: A Reevaluation of the Abecedarian, Perry Preschool, and Early Training Projects

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              Training, Wages, and Sample Selection: Estimating Sharp Bounds on Treatment Effects

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                Author and article information

                Contributors
                Journal
                J Dev Econ
                J Dev Econ
                Journal of Development Economics
                North-Holland Pub. Co.]
                0304-3878
                0304-3878
                1 June 2021
                June 2021
                : 151
                : 102626
                Affiliations
                [a ]Africa Rice Center (AfricaRice), Bouake, Cote d’Ivoire
                [b ]Department of Agricultural and Resource Economics, University of Arizona, Tucson, USA
                [c ]International Crop Research Institute for the Semi-Arid Tropics (ICRISAT), Bamako, Mali
                Author notes
                []Corresponding author. jdmichler@ 123456arizona.edu
                Article
                S0304-3878(21)00003-1 102626
                10.1016/j.jdeveco.2021.102626
                8214072
                6e420349-c7ec-4039-8884-e312d8bba44e
                © 2021 The Authors

                This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).

                History
                : 21 September 2019
                : 23 September 2020
                : 7 January 2021
                Categories
                Regular Article

                structural transformation,contract farming,rct,rice,sub-saharan africa

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