The study was conducted in South Eastern Nigeria using Anambra State as a case study. Eight Local Government Areas (LGAs) were purposively drawn from the study area from which 64 farmers under contract farming were drawn using a list from Cassava Growers Association in the area. Also 64 farmers that were not under contract farming were drawn across the LGAs. Staff from Agricultural Development Programme (ADP) and Nigeria Starch Mills, Ihiala, Anambra State assisted in data collected. Farm size, productivity, net returns, and welfare levels of the farmers under contract farming were higher than those not under contract farming. Productivity of contract farmers was significantly higher than productivity of farmers not under contract farming. However, there was no significant difference in the welfare status of both categories of farmers. The major problems facing contract farming in the zone were fund scarcity, lack of credit facilities and high production cost. Based on the findings, it was recommended that contract farming should be given more awareness and policies improved upon in this regard.