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Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis

Received: 19 May 2024     Accepted: 26 June 2024     Published: 29 October 2024
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Abstract

Purpose: Smallholder farmers' agriculture in developing countries particularly in low and lower-middle-income countries is known for poor production and productivity levels which has been related to the inadequate use of improved agricultural inputs and marketing systems, and in this case, contract farming. Therefore, this study aimed to investigate the various factors which affect contract farming among smallholder farmers in developing countries. However, trying to investigate those contract farming determinants by a single analytical method leads it to have limited findings, narrowed generalizability and difficulty in investigating major determinants that determine contract farming success. Therefore, a joint approach using factor analysis and meta-analysis can give a more comprehensive understanding of contract farming factors. Methodology: The data was gathered through a Systematic Literature Review, finding a total of 3007 studies from SCOPUS, PubMed, PubAg, and EMBASE. The PRISMA method was applied to, and finally, 35 peer-reviewed articles in English between January 1990 to September 2023 were selected. Findings: The meta-analysis showed interesting insights into factors influencing contract farming participation. Education and household size exhibited a negative association, suggesting that farmers with higher education levels and larger families may be less likely to participate in contract farming arrangements. This could be due to a preference for independent decision-making or the need for family labor in alternative income-generating activities. On the other hand, farmers with larger landholdings are more inclined to participate. To encourage broader participation, policymakers, and program designers could consider targeted outreach and support services for these specific demographics. Originality and value: Our new approach, joining meta-analysis and factor analysis, sheds innovative light on contract farming determinants. While the expected determinants like farm and household size, along with education, remained significant, our analysis showed unexpected nuances. Age of the household head emerged as potentially favoring younger, less experienced farmers. Moreover, access to extension services played an important role, while large household size might have a more complex influence depending on age composition. This comprehensive approach offers valuable insights for targeted outreach programs and collaboration with extension services to optimize contract farming adoption and success in developing countries.

Published in American Journal of Agriculture and Forestry (Volume 12, Issue 5)
DOI 10.11648/j.ajaf.20241205.15
Page(s) 356-365
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Contract Farming Participation, Factor Analysis, Low and Lower-middle-income Countries, Meta-regression Analysis, Smallholder Farmers

References
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Cite This Article
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    Abreham, G., Ayalew, Z., Chanie, E., Muchie, M., Sete, Y. (2024). Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis. American Journal of Agriculture and Forestry, 12(5), 356-365. https://doi.org/10.11648/j.ajaf.20241205.15

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    ACS Style

    Abreham, G.; Ayalew, Z.; Chanie, E.; Muchie, M.; Sete, Y. Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis. Am. J. Agric. For. 2024, 12(5), 356-365. doi: 10.11648/j.ajaf.20241205.15

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    AMA Style

    Abreham G, Ayalew Z, Chanie E, Muchie M, Sete Y. Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis. Am J Agric For. 2024;12(5):356-365. doi: 10.11648/j.ajaf.20241205.15

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  • @article{10.11648/j.ajaf.20241205.15,
      author = {Getahun Abreham and Zemen Ayalew and Essa Chanie and Mammo Muchie and Yordanos Sete},
      title = {Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis
    },
      journal = {American Journal of Agriculture and Forestry},
      volume = {12},
      number = {5},
      pages = {356-365},
      doi = {10.11648/j.ajaf.20241205.15},
      url = {https://doi.org/10.11648/j.ajaf.20241205.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajaf.20241205.15},
      abstract = {Purpose: Smallholder farmers' agriculture in developing countries particularly in low and lower-middle-income countries is known for poor production and productivity levels which has been related to the inadequate use of improved agricultural inputs and marketing systems, and in this case, contract farming. Therefore, this study aimed to investigate the various factors which affect contract farming among smallholder farmers in developing countries. However, trying to investigate those contract farming determinants by a single analytical method leads it to have limited findings, narrowed generalizability and difficulty in investigating major determinants that determine contract farming success. Therefore, a joint approach using factor analysis and meta-analysis can give a more comprehensive understanding of contract farming factors. Methodology: The data was gathered through a Systematic Literature Review, finding a total of 3007 studies from SCOPUS, PubMed, PubAg, and EMBASE. The PRISMA method was applied to, and finally, 35 peer-reviewed articles in English between January 1990 to September 2023 were selected. Findings: The meta-analysis showed interesting insights into factors influencing contract farming participation. Education and household size exhibited a negative association, suggesting that farmers with higher education levels and larger families may be less likely to participate in contract farming arrangements. This could be due to a preference for independent decision-making or the need for family labor in alternative income-generating activities. On the other hand, farmers with larger landholdings are more inclined to participate. To encourage broader participation, policymakers, and program designers could consider targeted outreach and support services for these specific demographics. Originality and value: Our new approach, joining meta-analysis and factor analysis, sheds innovative light on contract farming determinants. While the expected determinants like farm and household size, along with education, remained significant, our analysis showed unexpected nuances. Age of the household head emerged as potentially favoring younger, less experienced farmers. Moreover, access to extension services played an important role, while large household size might have a more complex influence depending on age composition. This comprehensive approach offers valuable insights for targeted outreach programs and collaboration with extension services to optimize contract farming adoption and success in developing countries.
    },
     year = {2024}
    }
    

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  • TY  - JOUR
    T1  - Contract Farming in Low and Lower-Middle-Income Countries: Using Meta-Analysis and Factor Analysis
    
    AU  - Getahun Abreham
    AU  - Zemen Ayalew
    AU  - Essa Chanie
    AU  - Mammo Muchie
    AU  - Yordanos Sete
    Y1  - 2024/10/29
    PY  - 2024
    N1  - https://doi.org/10.11648/j.ajaf.20241205.15
    DO  - 10.11648/j.ajaf.20241205.15
    T2  - American Journal of Agriculture and Forestry
    JF  - American Journal of Agriculture and Forestry
    JO  - American Journal of Agriculture and Forestry
    SP  - 356
    EP  - 365
    PB  - Science Publishing Group
    SN  - 2330-8591
    UR  - https://doi.org/10.11648/j.ajaf.20241205.15
    AB  - Purpose: Smallholder farmers' agriculture in developing countries particularly in low and lower-middle-income countries is known for poor production and productivity levels which has been related to the inadequate use of improved agricultural inputs and marketing systems, and in this case, contract farming. Therefore, this study aimed to investigate the various factors which affect contract farming among smallholder farmers in developing countries. However, trying to investigate those contract farming determinants by a single analytical method leads it to have limited findings, narrowed generalizability and difficulty in investigating major determinants that determine contract farming success. Therefore, a joint approach using factor analysis and meta-analysis can give a more comprehensive understanding of contract farming factors. Methodology: The data was gathered through a Systematic Literature Review, finding a total of 3007 studies from SCOPUS, PubMed, PubAg, and EMBASE. The PRISMA method was applied to, and finally, 35 peer-reviewed articles in English between January 1990 to September 2023 were selected. Findings: The meta-analysis showed interesting insights into factors influencing contract farming participation. Education and household size exhibited a negative association, suggesting that farmers with higher education levels and larger families may be less likely to participate in contract farming arrangements. This could be due to a preference for independent decision-making or the need for family labor in alternative income-generating activities. On the other hand, farmers with larger landholdings are more inclined to participate. To encourage broader participation, policymakers, and program designers could consider targeted outreach and support services for these specific demographics. Originality and value: Our new approach, joining meta-analysis and factor analysis, sheds innovative light on contract farming determinants. While the expected determinants like farm and household size, along with education, remained significant, our analysis showed unexpected nuances. Age of the household head emerged as potentially favoring younger, less experienced farmers. Moreover, access to extension services played an important role, while large household size might have a more complex influence depending on age composition. This comprehensive approach offers valuable insights for targeted outreach programs and collaboration with extension services to optimize contract farming adoption and success in developing countries.
    
    VL  - 12
    IS  - 5
    ER  - 

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