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Cited by 490

The DOI matches its Crossref record; 23 of the 23 references it cites were found in a registry or an index.

Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China

Open access
Miyata, Sachiko, Minot, Nicholas, Hu, Dinghuan·2009·World Development
DOI 10.1016/j.worlddev.2008.08.025
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Abstract

"Contract farming is seen by proponents as a way to raise small-farm income by delivering technology and market information to small farmers, incorporating them into remunerative new markets. Critics, however, see it as a strategy for agribusiness firms to pass production risk to farmers, taking advantage of an unequal bargaining relationship. There is also concern that contract farming will worsen rural income inequality by favoring larger farmers. This study examines these issues in Shandong Province, China, using survey data collected from 162 apple and green onion farmers and interviews with four contracting firms in 2005. Using a probit model to estimate participation in a contract-farming scheme, we find little evidence that contracting firms prefer to work with larger farmers, though all farms in the area are quite small. Furthermore, using a Heckman selection-correction model to control for possible selection bias, we find that contract farmers earn significantly more than independent farmers after controlling for household labor availability, education, farm size, and other characteristics. Finally, we find that the way contracting contributes to farm income varies between commodities: contract apple growers benefit from higher yields (presumably due to technical assistance), while contract green onion growers receive higher prices (presumably due to better quality). These results suggest that contract farming can help small farmers raise their incomes and gain access to the growing urban and export markets. Questions remain regarding the number of farmers that are, or could be, brought into similar contract arrangements." from Authors' Abstract

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Metadata

Authors
Miyata, S., Minot, N., & Hu, D.
Venue
World Development
Publisher
Elsevier BV
Published
2009-11
Volume
37
Issue
11
Pages
1781-1790
ISSN
0305-750X (ISSN-L)
DOI
10.1016/j.worlddev.2008.08.025
OpenAlex
W2063501057
Cited by
490
References
23
FWCI
48.38
Type
journal article
Language
en
Open access
green

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