Impact of Contract Farming on Household Income in Senegal

Abstract

This study assesses the exploratory factors for household participation in contract farming and its relationship with farm income. We use instrumental variable models. Survey data collected under the Agricultural Policy Support Project (PAPA) in 2017 are used. Two results are obtained. The first result indicates that the exploratory factors for participation in contract farming are identified as gender, level of education, agro-ecological zone, access to credit, agricultural insurance, agricultural advice, and the share of contract farming in the commune. The second result shows the importance of participating in contract farming in that it is positively correlated with household welfare through improved income. Related Articles: Abdulai, A.-G., J. N. Bawole, and E. K. Sakyi. 2018. “Rethinking Persistent Poverty in Northern Ghana: The Primacy of Policy and Politics Over Geography.” Politics & Policy 46, no. 2: 233–262. https://doi.org/10.1111/polp.12250. Adegboye, A., K. Adegboye, U. Uwuigbe, S. Ojeka, and E. Fasanu. 2023. “Taxation, Democracy, and Inequality in Sub-Saharan Africa: Relevant Linkages for Sustainable Development Goals.” Politics & Policy 51, no. 4: 696–722. https://doi.org/10.1111/polp.12547. Asongu, S., and N. M. Odhiambo. 2023. “The Effect of Inequality on Poverty and Severity of Poverty in Sub-Saharan Africa: The Role of Financial Development Institutions.” Politics & Policy 51, no. 5: 898–918. https://doi.org/10.1111/polp.12558.