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Contract farming, productivity and fertilizer usage: Empirical evidence from specialty crop production

Ashok Mishra (), Anjani Kumar (), Pramod Kumar Joshi, D’Souza, Alwin and Gaurav Tripathi

No 1768, IFPRI discussion papers from International Food Policy Research Institute (IFPRI)

Abstract: This study investigates the impact of contract farming (CF) in baby corn production on yield, irrigation costs, fertilizer costs and usage of chemical fertilizer. We find that adoption of CF by baby corn smallholders, after controlling for characteristics of both control and treatment groups, leads to higher yields and lower spending on fertilizers and irrigation. Additionally, CF in baby corn farming leads to a reduction in the use of chemical fertilizers (Urea and DAP). Thus, CF intervention benefits the livelihood of smallholders, reduces environmental degradation and reduces stress on groundwater without compromising yield.

Keywords: INDIA; SOUTH ASIA; ASIA; contract farming; fertilizer application; water use; maize; farm inputs; smallholders; crop yield; agricultural productivity; marginal mean weighting through stratification (MMWS); C21 Single Equation Models: Cross-Sectional Models; Q12 Micro Analysis of Farm Firms; Farm Households; and Farm Input Markets; Q50 Environmental Economics: General (search for similar items in EconPapers)
Date: 2018
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Handle: RePEc:fpr:ifprid:1768