DETERMINANTS OF PARTICIPATION IN CONTRACT FARMING AMONG SMALLHOLDER MAIZE FARMERS IN NORTH-WESTERN NIGERIA

Abstract

Background. Smallholder farmer’s market participation, through contract farming arrangements has been receiving much attention in sub-Saharan Africa, as a measure towards increasing commercialization and specialization in essential crops value chains.
Material and methods. Using a sample of 361 randomly sampled maize farmers, the study identified factors influencing smallholder maize farmer’s decision and extent of participation in contract farming in north-western Nigeria. Descriptive statistics and Craggs double hurdle model were used for data analysis.
Results. Maize farmers (51.8%) were found to be participating in the contract farming (CF); An average age of maize farmers involved in contract farming is 39 years; with over 20 years of farming experience and an average farm size of 2.46 hectares. On the other hand, those not involved in contract farming have an average age of 37 years, 18 years farming experience and an average farm size of about 2.16 hectares. Furthermore, the number of years of contract farming awareness, access to credit, extension services, and agricultural training had positive and significant (p < 0.0.5) effect on maize farmers’ decision to participate in contract farming. The significant factors (p < 0.01) influencing the extent of contract farming participation are; farm size, farming experience, access to credit, duration of contract agreement, contract farming experience, and side-selling.
Conclusion. Inadequate requisite land, lower prices offered by firms and untimely distribution of inputs were identified as major constraints affecting smallholder maize farmers participation in CF. Therefore, taking proactive measures regarding these factors such as creating more CF awareness through extension workers by relevant investors and agencies will promote contract farming participation among smallholder farmers.