Malt Barley Contract Farming Schemes

Malt Barley Contract Farming Schemes

Participation and Impact on Smallholder Farmers' Income

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Globally, contract farming has received strong recognition as it is proved to increase smallholder farmers' access to input and output markets, production and productivity and income. This study investigates the welfare gains of participation in contract farming by smallholder malt barley growers. We use propensity score matching techniques to estimate the effect of contract farming on smallholder's net revenue from malt barley production. Our analysis shows that participation in contract farming significantly (p=0.001) improved farmers' annual net revenue by 557 to 687 ETB ($26.34 to $32.46) ...