Participation in contract farming and farm performance: Insights from cashew farmers in Ghana

Artikel

The global demand for cashew nuts continues to increase steadily. However, many African countries face difficulties in marketing and adding value to the product. Using recent survey data of 391 cashew farmers in Ghana, this paper contributes to the growing evidence on the significance of contract farming (CF) in improving the welfare of rural households in developing countries. Specifically, the paper analyzes the factors that influence cashew farmers’ decisions to participate in CF, and the impact of participation on farmers’ performance. We employ a recently developed switching regression model with endogenous explanatory variables and endogenous switching to control for selection bias caused by observable and unobservable factors. The empirical results show that participation in CF significantly increases labor productivity and price margins, as well as cashew yields, and net revenues. A disaggregated analysis of the sample into farm size categories reveals that small-sized cashew farms tend to benefit more through CF, compared to medium- and large-sized farms.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Agricultural Economics ; ISSN: 1574-0862 ; Volume: 50 ; Year: 2019 ; Issue: 6 ; Pages: 749-763 ; Hoboken, NJ: Wiley

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Truncated and Censored Models; Switching Regression Models ; Human Capital; Skills; Occupational Choice; Labor Productivity ; Contracting Out; Joint Ventures; Technology Licensing ; Economic Development: Agriculture; Natural Resources; Energy; Environment; Other Primary Products ; Agricultural Markets and Marketing; Cooperatives; Agribusiness
• Subject: Africa ; cashew ; contract farming ; impact assessment ; value chain

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Dubbert, Caroline
• Event: Veröffentlichung
• (who): Wiley
• (where): Hoboken, NJ
• (when): 2019

Further information

• DOI: doi:10.1111/agec.12522
• Handle: http://hdl.handle.net/10419/230159
• Last update: 10.03.2025, 11:42 AM CET