Contract Farming and Food Security

22 Pages Posted: 16 Apr 2020

See all articles by Marc F. Bellemare

Marc F. Bellemare

University of Minnesota - Twin Cities - Department of Applied Economics

Lindsey Novak

University of Minnesota - Minneapolis

Date Written: March 2017

Abstract

Contract farming has often been associated with an increase in the income of participating households. It is unclear, however, whether contract farming increases other aspects of household welfare. We use data from six regions of Madagascar and a selection‐on‐observables design in which we control for a household's marginal utility of participating in contract farming, which we elicited via a contingent valuation experiment, to show that participating in contract farming reduces the duration of a household's hungry season by about eight days on average. Moreover, participation in contract farming makes participating households about 18% more likely to see their hungry season end at any time. Further, we find that these effects are more pronounced for households with more children, and for households with more girls. This is an important result as children—especially girls—often bear the burden of food insecurity.

Keywords: Contract farming, outgrower schemes, grower‐processor contracts, agricultural value chains, food security

Suggested Citation

Bellemare, Marc F. and Novak, Lindsey, Contract Farming and Food Security (March 2017). American Journal of Agricultural Economics, Vol. 99, Issue 2, pp. 357-378, 2017, Available at SSRN: https://ssrn.com/abstract=3576999 or http://dx.doi.org/10.1093/ajae/aaw053

Marc F. Bellemare (Contact Author)

University of Minnesota - Twin Cities - Department of Applied Economics ( email )

MN
United States

Lindsey Novak

University of Minnesota - Minneapolis

110 Wulling Hall, 86 Pleasant St, S.E.
308 Harvard Street SE
Minneapolis, MN 55455
United States

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