Factors influencing contract farming participation among sorghum farmers in Dodoma, Tanzania

Thedy Kimbi, Fulgence Mishili, Christopher Magomba, Stefan Sieber and Essegbemon Akpo

No 365865, 2023 Seventh AAAE/60th AEASA Conference, September 18-21, 2023, Durban, South Africa from African Association of Agricultural Economists (AAAE)

Abstract: Contract farming is viewed as a useful arrangement that integrates farmers in the agricultural value chain for sustainable crop production. It is essential for policy makers focusing on agricultural development to enforce the promotion and implementation of contract farming especially in developing countries. However, in Tanzania, contract farming participation among smallholder farmers has been low. This study aimed to analyze the determinants of sorghum farmers’ participation in contract farming. The study used data collected from 400 sorghum farmers for the 2019/2020 cropping season located in Kongwa, Chamwino and Mpwapwa districts in Dodoma, Tanzania. A binary logit regression model was employed to analyze the determinants of contract farming participation. Findings show that age, off-farm income, hired labor, family-hired labor mix, access to extension services, both owned and rented land, access to financial services as well as savings and credit group membership positively influenced contract farming participation among sorghum farmers. In contrast, household size and sorghum farming experience negatively influenced contract farming participation. Therefore, this study recommends for effective policy mechanisms that promote improved extension and credit services, and growth of the off-farm sector among other things for improved participation in sorghum contract farming.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Pages: 19
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaae23:365865

DOI: 10.22004/ag.econ.365865

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