Impact of Contract Farming on Beef Cattle Farmers' Income: A Propensity Score Matching Analysis

Hasan Burak Ağır; Cuma Akbay

doi:10.18016/ksutarimdoga.vi.896094

TR EN

Sözleşmeli Üretimin Besi Sığırı Üreticilerinin Geliri Üzerine Etkisi: Eğilim Skoru Eşleştirme Yöntemi

Öz

Bu çalışma, sözleşmeli üretime katılımın besi sığırı üreticileri gelirleri üzerine etkisini araştırmayı amaçlamaktadır. Bu bağlamda, veriler 2016 yılında Adana ilinde 155 üreticiden yüz yüze yapılan anketlerden elde edilmiştir. Sözleşmeli üretimin üretici geliri üzerine etkisi Propensity Score Matching (Eğilim Puanı Eşleştirme) kullanılarak belirlenmiştir. Sonuçlara göre, sözleşme yapan üreticilerin sözleşme yapmayanlara göre daha fazla varlığa ve çoğunlukla daha büyük bir sürüye sahip olduğunu saptanmıştır. Ayrıca, sözleşmeye katılım, üretici gelirinde %10.04'lük bir artış sağlamaktadır (p<0.01). Sözleşme yapan işletmelerin çoğunluğunun büyük ölçekli işletmeler olduğu göz önüne alındığında, gelirdeki bu artışın küçük işletme sahiplerini sözleşmeli üretime katılmaya teşvik etmek için yeterli olmadığı söylenebilir. Bu bağlamda, politika yapıcıların işletme ölçeğine uygun teknik yardım sağlamaya odaklanmaları, küçük üreticilerin sözleşmeye katılım oranını artırmak için işletme büyüklüğü ile ters orantılı bir sözleşme fiyatı belirlemeleri ve yayım hizmetlerini artırmaları gerekmektedir.

Anahtar Kelimeler

Impact of Contract Farming on Beef Cattle Farmers' Income: A Propensity Score Matching Analysis

Abstract

This study aims to investigate the impact of contract farming participation on the income of beef cattle farmers. For this purpose, the data was collected from 155 farmers by face-to-face questionnaires in Adana province in 2016. The impact of contract farming on farmers’ income was identified using Propensity Score Matching. The results show that farmers who participate in the contract have more assets and mostly have a larger herd in comparison with non-contract. Further, contract participation entails a 10.04% increase in income (p<0.01). Given that most of the contract farms are large-scale, it can be said that this gain in income is not enough for encouraging smallholders to participate in contract farming. The evidence from this study suggests that policymakers should focus on providing appropriate technical assistance, giving price premiums and bonuses inversely proportional to farm-scale and improve extension services to enhance the rate of smallholder contract participation.

Keywords

References

Abdulai Y, Al-Hassan S 2016. Effects of Contract Farming on Small-Holder Soybean Farmers Income In The Eastern Corridor Of The Northern Region, Ghana. Journal of Economics and Sustainable Development, 7(2): 103-113.
Alıcı S, Yılmaz G, Kınay A 2011. Investigation of Contracted Tobacco Farming and Grower Behavior in Tokat-Erbaa. Journal of Agricultural Faculty of Gaziosmanpasa University, 28(1): 53-59.
Austin PC 2011. An İntroduction To Propensity Score Methods for Reducing The Effects of Confounding in Observational Studies. Multivariate Beh. Res., 46: 399-424. https://doi.org/10.1080/00273171. 2011.568786
Becker SO, Caliendo M 2007. Sensitivity Analysis for Average Treatment Effects. The Stata Journal 7(1): 71-83.https://doi.org/10.1177/1536867X0700700104
Bellemare MF 2012. As You Sow, So Shall You Reap: The Welfare Impacts of Contract Farming. World Development, 40(7): 1418–1434. https://doi.org/ 10.1016/j.worlddev.2011.12.008
Benmehaia MA, Brabez F 2018. Vertical Relationships and Food Supply Chain Coordination: The Case of Processing Tomato Sector in Algeria. New Medit, A Mediterranean Journal of Economics, Agricultural and Environment, 2: 3-14.
Begum IA, Alam MJ, Buysse J, Frija A, Huylenbroeck GV 2012. Contract Farmer and Poultry Farm Efficiency in Bangladesh: A Data Envelopment Analysis. Applied Economics, 44(28): 3737-3747. https://doi.org/10.1080/00036846.2011.581216
Bergsta SA, Sepriano A, Ramiro S, Landewe R 2019. Three Handy Tips and A Practical Guide To Improve Propensity Score Models. RMD Open, 5: 1-4.

Bijman J 2018. Contract Farming in Developing Countries: An Overview. Development Cooperation, Netherlands Ministry of Foreign Affairs, 2008, pp. 27.
Birthal PS, Jha AK, Tiongco MM, Narrod C 2008. Improving Farm-To-Market Linkages Through Contract Farming: A Case Study of Smallholder Dairying In India. Discussion Paper 00814. Int. Food Policy Research Ins. Washington D.C., 2008, pp. 40.
Brookhart A, Schneeweis S, Rothman K, Glynn R, Avorn J, Stürmer T 2006. Variable Selection For Propensity Score Models. Am. J. Epidemiol, 163(12): 1149–1156. https://doi.org/10.1093/aje/ kwj149
Caliendo M, Kopeinig S (2008) Some Practical Guidance For The Implementation of Propensity Score Matching. Journal of Economic Surveys, 22(1): 31–72. https://doi.org/10.1111/j.1467-6419.2007.00527.x
Costales A, Son NT, Lapar ML, Tioncgo M 2006. Smallholder Contract Farming of Swine in Northern Vietnam: Type and Scale of Production. Pro-Poor Livestock Policy Initiative Research Report.
Diprete T, Gangl M 2004. Assessing Bias in the Estimation of Causal Effects: Rosenbaum Bounds on Matching Estimators and Instrumental Variables Estimation with Imperfect Instruments. Sociological Methodology, 34: 271–310. https://doi.org/10.1111/j.0081-1750.2004.00154.x
Eaton C, Shepherd A 2001. Contract Farming: Partnerships for Growth. Agricultural Services Bulletin 145, FAO, Rome, 2001, pp.153.
Engindeniz S 2008. Comparative economic analysis of contracted-based and non-contract tomato production in Izmir. Alatarım, 7(1): 44-51.
GDMMB 2019. General Directory of Meat and Milk Board. Avaliable at: www.esk.gov.tr (Accessed: 15.05. 2019).
Guo H, Jolly RW, Zhu J 2005. Contract Farming in China: Supply Chain pr Ball and Chain? In Proceedings of the Minnesota International Economic Development Conference, University of Minnesota, 2005, April 29-30.
Guo S, Fraser M W 2015. Propensity Score Analysis: Statistical Methods And Applications. SAGE Publications, London, UK, 409p.
Gümüş AH 2019. A Study on The Marketing Situation of Turkey’s Tobacco Production, its Problems And Recommendations for Alternative Marketing Types. PhD thesis, Ege University, Graduate School of Natural and Applied Sciences, Izmir, Turkey.
Hu WY 2013. Effect of Contract Farming on the U.S. Crop Farmers’ Average Return. Agricultural Economics, CZECH, 59(5): 195–201. https://doi.org/10.17221/100/2012-AGRICECON
Khandker SR, Koolwal GB, Samad HA 2010. Handbook on impact evaluation: Quantitative Methods. Washington, DC, World Bank, 2010.
Katchova AL 2010. Agricultural Contracts and Alternative Marketing Options: A Matching Analysis. Journal of Agr. and Applied Economics, 42(2): 261–276. https://doi.org/ 10.1017/ S107407 0800003448
Key N, Runsten D 1999. Contract Farming, Smallholders, and Rural Development in Latin America: The Organization of Agro Processing Firms and the Scale of Out Grower Production. World Development, 27(2): 381–401. https://doi.org/10.1111/1467-8276.00107
Key N, Mcbride W 2003. Production Contracts and Productivity in The U.S. Hog Sector. American Journal of Agriculture Economics, 85(1): 121–133. https://doi.org/10.1111/1467-8276.00107
Leuven E, Sianesi B 2003. Psmatch2: Stata Module to Perform Full Mahalanobis and Propensity Score Matching, Common Support Graphing, and Covariate Iİmbalance Testing. Statistical Software Components.
Little P D, Watts M 1994. Living under contract: Contract Farming and Agrarian Transformation In Sub-Saharan Africa. Univ of Wisconsin Press.
Maertens M, Velde KV 2017. Contract Farming in Staple Food Chains: The Case of Rice in Benin. World Development, 95: 73-87. https://doi.org/ 10.1016/ j.worlddev.2017.02.011
Mendola M 2007. Agricultural Technology Adoption and Poverty Reduction: A Propensity Score Matching Analysis for Rural Bangladesh. Food Policy, 32: 372–393. https://doi.org/10.1016/ j.foodpol.2006.07.003
Minot N 2007. Contract Farming in Developing Countries: Patterns, Impact and Policy Implications, Case Study 6-3 Of The Program, Food Policy For Developing Countries: The Role Of Government In The Global Food System, 2007. 14p.
Miyata S, Minot N, Hu D 2009. Impact of Contract Farming on Income: Linking Small Farmers, Packers, and Supermarkets in China. World Development, 37(11): 1781-1790. https://doi.org/10.1016/j.worlddev.2008.08.025
Mwambi MM, Oduol J, Mshenga P, Saidi M 2016. Does contract Farming Improve Smallholder Income? The Case Of Avocado Farmers in Kenya. Journal of Agribusiness in Developing and Emerging Economies, 6(1): 2-20. https://doi.org/10.1108/ JADEE-05-2013-0019
Newbold P 1995. Statistics for Business and Economics. Prentice-Hall, New Jersey, 1995.
Porter G, Phillips-Howard K 1997. Comparing Contracts: An Evaluation of Contract Farming Schemes in Africa. World Development, 25(2): 227–238. https://doi.org/10.1016/S0305-750X(96)00101-5
Rehber E 2007. Contract farming: Theory and practice. ICFAI University Press, Hyderabad, India, 2007.
Rosenbaum PR, Rubin DB 1983. The Central Role of The Propensity Score in Observational Studies for Causal Effects. Biometrika, 70(1): 41–55. https://doi.org/10.1093/biomet/70.1.41
Rosenbaum PR 2003. Observational Studies. 2nd ed. New York: Springer, 2002.
Rubin DB 2001. Using Propensity Scores to Help Design Observational Studies: Application to the Tobacco Litigation. Health Services and Outcomes Research Methodology, 2(3): 169–188. https://doi.org/10.1023/A:1020363010465
Sarma PK, Ahmed U, AKMA Al-Amin, Fatema K 2014. Determinants of Market Participation in Small Scale Beef Cattle Entrepreneurs: Evidence From Pabna and Sirajganj Districts of Bangladesh. J. Sylhet Agril. Univ., 1(2): 289-297.
Setboonsarng S, Leung P, Stefan A 2008. Rice Contract Farming in Lao PDR: Moving From Subsistence to Commercial Agriculture. ADB Institute Discussion Paper, 2008. N. 90. pp. 20.
Sianesi B 2004. An Evaluation of the Swedish System of Active Labor Market Programs in the 1990s. The Review of Economics and Statistics, 86: 133-155.
Turkstat, 2019. Turkish Statistical Institute. Livestock statistics. Avaliable at: www.tuik.gov.tr. (Accessed: March 15, 2019).
Wang H, Mouster P, Thi Tan Log N 2014. Economic Impact of Direct Marketing and Contracts: The Case of Safe Vegetable Chains in Northern Vietnam. Food Policy, 47: 13-23. https://doi.org/10.1016/j.foodpol.2014.04.001

Details

Primary Language

English

Subjects

Agricultural, Veterinary and Food Sciences

Journal Section

Research Article

Authors

Hasan Burak Ağır ^*
0000-0003-4275-9819
Türkiye

Cuma Akbay
0000-0001-7673-7584
Türkiye

Publication Date

April 30, 2022

Submission Date

March 12, 2021

Acceptance Date

June 3, 2021

Published in Issue

Year 2022 Volume: 25 Number: 2

DOI

https://doi.org/10.18016/ksutarimdoga.vi.896094

IZ

https://izlik.org/JA66ZN43LG

Cite

RIS / Bibtex

APA

Ağır, H. B., & Akbay, C. (2022). Impact of Contract Farming on Beef Cattle Farmers’ Income: A Propensity Score Matching Analysis. Kahramanmaraş Sütçü İmam Üniversitesi Tarım Ve Doğa Dergisi, 25(2), 392-399. https://doi.org/10.18016/ksutarimdoga.vi.896094

Does contract farming have an impact on farm productivity and profitability? A study of A1 and A2 maize farmers in Mutare District, Zimbabwe

Agrekon

https://doi.org/10.1080/03031853.2025.2579057

Evaluating the income effects of contract farming among cattle farmers in northern communal areas of Namibia

Cogent Social Sciences

https://doi.org/10.1080/23311886.2026.2631203

Examination of Changes in Production Decisions and Market Behavior of Cotton Farmers During the Economic Crisis; The Example of 2018 Türkiye Economic Crisis

Tekirdağ Ziraat Fakültesi Dergisi

https://doi.org/10.33462/jotaf.1782730

Smallholder farmers’ perceptions of cattle contract farming in the Northern communal areas of Namibia

Cogent Food & Agriculture

https://doi.org/10.1080/23311932.2026.2621451

Impact of Contract Farming on Beef Cattle Farmers' Income: A Propensity Score Matching Analysis

Sözleşmeli Üretimin Besi Sığırı Üreticilerinin Geliri Üzerine Etkisi: Eğilim Skoru Eşleştirme Yöntemi

Öz

Anahtar Kelimeler

Impact of Contract Farming on Beef Cattle Farmers' Income: A Propensity Score Matching Analysis

Abstract

Keywords

References

Details

Primary Language

Subjects

Journal Section

Authors

Publication Date

Submission Date

Acceptance Date

Published in Issue

DOI

IZ

Cite

Cited By

Postharvest Losses in Onion: Causes and Determinants

Nijerya'daki Savunmasız Grubun Gıda Güvensizliği ve Diyet Çeşitliliği. Sürücüler ve Başa Çıkma Stratejileri

Participation of smallholder farmers in cattle contract farming: a systematic review

Does contract farming have an impact on farm productivity and profitability? A study of A1 and A2 maize farmers in Mutare District, Zimbabwe

Evaluating the income effects of contract farming among cattle farmers in northern communal areas of Namibia

Examination of Changes in Production Decisions and Market Behavior of Cotton Farmers During the Economic Crisis; The Example of 2018 Türkiye Economic Crisis

Smallholder farmers’ perceptions of cattle contract farming in the Northern communal areas of Namibia