ECONOMIC IMPLICATION OF CONTRACT FARMING ON SMALL-SCALE RICE FARMERS IN KWARA STATE, NIGERIA
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Date
2019
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Publisher
Agrosearch, Faculty of Agriculture, University of Ilorin
Abstract
This study examines the implication of contract farming on Olam Out-growers farming scheme in
Kwara State, Nigeria. The objectives of the study are to determine the costs and returns to
production of rice, assess the productivity level of rice, evaluate the technical efficiency of rice
farm and identify the determinants of the technical inefficiency of the rice farms in contract
farming. In this study, the average net farm income of the rice farmers under the scheme was
N191,862.56 and the land productivity level was 2,006.04kg/ha. The technical efficiency of the
rice farm was estimated using Cobb-Douglas Stochastic Frontier Production function which
shows that likelihood coefficients for quality of seeds, hired labour and farm size were statistically
significant at 1% level. Likewise, the determinants of technical efficiency among the farmers were
household size and farming experience. The results further show that the contract farming
scheme has a positive impact on the lives of rice farmers. Therefore, there is a need for
partnership with private contract farming outfits in order to improve the current level of access to
inputs by rice farmers.
Description
Agricultural Production
Keywords
Contract farming, Out-growers rice farmers, Technical efficiency, Farm income