Poor, rural farmers are often left out of the market. They may not be able to compete with larger farmers who can provide exporters and consistently high quality product. While some of these problems stem from scale, their inability to commit to a contract is also problematic. The proposed research will test contract designs in the field to show which structures work, and will measure improvements to overall farmer welfare based on their participation in a contract.
The research aims to help in the design of new institutional mechanisms that will favor the inclusion of smallholders and link them to dynamic markets through efficient contract farming arrangements. By working on refining these mechanisms, researchers will help integrate small farmers into higher value export markets and rapidly changing value chains. Participating in these markets will improve the welfare of the poor, and increase their income generating options.