Key drivers behind contract farming engagement decisions in Tanzania: empowering sorghum farmers
Agricultural production under contractual agreements is considered profitable, enabling the integration of smallholder farmers into agricultural commodity value chains. This calls for agricultural policies targeting rural development to emphasize the support for such initiatives. In Tanzania, small-...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2024-12-01
|
| Series: | Cogent Social Sciences |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311886.2024.2396957 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | Agricultural production under contractual agreements is considered profitable, enabling the integration of smallholder farmers into agricultural commodity value chains. This calls for agricultural policies targeting rural development to emphasize the support for such initiatives. In Tanzania, small-scale farmers’ involvement in contract farming (CF) has remained consistently low. Therefore, this study analyzed the drivers influencing sorghum farmers’ engagement in CF offered by brewing companies in the country. Cross-sectional data from 400 sorghum farmers in the three districts of Kongwa, Mpwapwa and Chamwino in Tanzania were used. A binary logit model was employed to analyze the driving factors that influence CF engagement. The logit model shows that age, a mix of family-hired labor, extension services, both leased and owned land, saving and credit group membership, CF trust, and grain price significantly and positively drive farmers’ decisions toward CF. Conversely, household size, grain bulking distance and experience significantly and negatively affected farmers’ involvement in contract cultivation. Therefore, this study recommends effective policy efforts that promote improved extension services, saving and credit groups, and good grain pricing to enhance participation in CF by sorghum farmers. |
|---|---|
| ISSN: | 2331-1886 |