Wiggins, S. and Keats, S. (2012), Leaping and learning, linking smallholders to Markets in Africa; Draft Reprt, Overseas Development Institute (ODI).

2.3 DIRECT ACTIONS IN COMMUNITIES

2.3.2 Entrepreneurship: Capacity strengthening on economic activities

Recommendation: 32. Review contract farming as a potential approach for involving smallholders in agroindustry development, increasing employment and improving the inclusiveness of growth. Note that marginal smallholders may find better prospects as wage labourers on larger farms—including in processing of agricultural outputs—instead  of participating in improved supply chains as independent producers. Consider, however, that in some cases there is evidence that contract farming can benefit better-equipped farmers, excluding the poorest ones. Depending on project objectives, this will need to be taken into account and addressed.

Reference: Wiggins, S. and Keats, S. (2012), Leaping and learning, linking smallholders to Markets in Africa; Draft Reprt, Overseas Development Institute (ODI).

Evidence sample: Taking these finds one step further, Wiggins and Keates (2012) argue that marginal smallholders may find better prospects as wage labourers on larger farms instead of participating in improved supply chains as producers.