ORIGINAL RESEARCH article
Front. Environ. Econ.
Sec. Agricultural Economics
Volume 4 - 2025 | doi: 10.3389/frevc.2025.1415517
This article is part of the Research TopicHarnessing the Potential of Agriculture 4.0: the double challenge of food security and climate changeView all 7 articles
Impact of Contract Farming on Householders' Income, Input Use IntensityIntensification and Land Productivity in Ethiopia: Evidence from Smallholder Malt Barley Producers in Highlands of Central and Southern Oromia Regional State
Provisionally accepted
- Oromia Agricultural Research Institute(IQQO), Addis Ababa, Ethiopia
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Contract farming (CF) is an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices. Malt barley producingproducer smallholder farmers In Ethiopia are engagedpracticing in CF with different malt factories and breweries in Arsi and West Arsi zones.However, CF models practiced, factors affecting participation in CF and its impact on households'households' welfare and input use were not well studied so far.We addressHence, this gap by first describing theresearch was initiated with the objectives of identifying and characterizing CF models practiced in the study area. Subsequently, we identify the, identifying factors that induce farmers to participateaffect participation in CF, and estimateestimating the impact of participation in CF on households'households' income, intensification and land productivity. For that purpose,Hence the barley producing households were clustered as 'participant''participant' and 'non-participants''non-participants' in CF. Household level data from 248 randomly sampled households werewas collected by face-to-face interviewsinterview using a structured questionnaire. In addition, while focus group discussionsdiscussion (FGD), key informant interviewsinterview (KII) and secondary data were used to substantiate the household level data.Finally, narrative summariesNarrative summary and propensity score matching (PSM) were used for data analysis and interpretation..The FGD and KII results showed that smallholders tend to participate in the CF models followed are intermediary and resource -providing CF types. Participation of maltMalt barley producers in these CF schemes proved to beparticipation was positively correlated with the level ofand significantly affected by education, land size allocated to malt barley and participation in
Keywords: , malt barley,, propensity score matching,, Participant, nonparticipantintensification,, treatment effects Default Paragraph Font, Font: (Default) +Body (Calibri), 11 pt, Font color: Text 1 Font color: Text 1, Afar (Djibouti), Pattern: Clear
Received: 10 Apr 2024; Accepted: 13 Jun 2025.
Copyright: © 2025 Challa, Dube and Dawid. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
* Correspondence: Tamrat Gebiso Challa, Oromia Agricultural Research Institute(IQQO), Addis Ababa, Ethiopia
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