Smallholder Farmers' Dissatisfaction with Contract Schemes in Spite of Economic Benefits: Issues of Mistrust and Lack of Transparency

Abstract: Contract farming is typically seen as a useful mechanism to help smallholders in overcoming market access constraints. However, in spite of economic benefits, high smallholder dropout rates from contract schemes are commonplace. We use quantitative and qualitative data from Ghana to show that smallholder farmers benefit from a resource-providing contract in terms of higher yields and incomes, but that most of them still regret their decision to participate in the contract scheme and would prefer to exit if they could. The analysis underlines that research focusing on narrowly defined economic indicators alone cannot explain farmers' satisfaction with contracts and their dropout behaviour. The main problem in the contract scheme is insufficient information provided by the company. Farmers do not understand all the contract details, which leads to substantial mistrust. Farmers believe that the company behaves opportunistically, for instance during the output weighing procedure, and t

Standort
Deutsche Nationalbibliothek Frankfurt am Main
Umfang
Online-Ressource
Sprache
Englisch
Anmerkungen
Veröffentlichungsversion
begutachtet (peer reviewed)
In: Journal of Development Studies ; 57 (2021) 7 ; 1106-1119

Klassifikation
Wirtschaft

Ereignis
Veröffentlichung
(wo)
Mannheim
(wer)
SSOAR, GESIS – Leibniz-Institut für Sozialwissenschaften e.V.
(wann)
2021
Urheber

DOI
10.1080/00220388.2020.1850699
URN
urn:nbn:de:0168-ssoar-73715-7
Rechteinformation
Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Letzte Aktualisierung
25.03.2025, 13:52 MEZ

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Beteiligte

Entstanden

  • 2021

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