Bellemare, M. F., 2012, As you sow, so shall you reap: The welfare impacts of contract farming. World Development, 40(7), Science Direct.

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: Bellemare, M. F., 2012, As you sow, so shall you reap: The welfare impacts of contract farming. World Development, 40(7), Science Direct.

Evidence sample: Bellemare (2012) shows that those participating in contract farming in Madagascar had larger landholdings, greater assets, better education and were more likely to be a member of a producer organisation.