Journal
WORLD DEVELOPMENT
Volume 37, Issue 11, Pages 1781-1790Publisher
PERGAMON-ELSEVIER SCIENCE LTD
DOI: 10.1016/j.worlddev.2008.08.025
Keywords
China; contract farming; horticulture; farmers; supermarkets; processors; exports
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This study compares contract and non-contract growers of apples and green onions in Shandong Province, China in order to explore the constraints on participation and the impact of contract farming on income. We find little evidence that firms prefer to work with larger farms, though all farms in the area are quite small. Using a Heckman selection-correction model, we find that contract farming raises income even after controlling for observable and unobservable household characteristics. These results suggest that contract farming can help ruse small-farm income, though questions remain regarding the number of farmers that can be brought into such schemes. (C) 2009 Elsevier Ltd. All rights reserved.
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