Impact of a Contract Farming Scheme on Income, Food Security, and Nutrition among Maize Farmers in North Western, Nigeria

Abstract

Background: The study examined the impact of a contract farming scheme on the farmers’ income, food security, and nutrition. Methods: Simple random sampling was used to select 100 respondents for the study. Data were analyzed using descriptive and inferential statistics as well the Propensity Score Matching technique. Results: The major determinants of participation in contract farming included commercialization index, distance from the collection center, and total labor available in the household. The average treatment effect on the treated, the average effect of the treatment, and the average treatment on the untreated shows that contract farming will enhance the income from Maize production by ₦50234.8 ($131.79)/hectare, ₦37170.8 ($97.53)/hectare, and ₦28809.8 ($75.59)/hectare respectively. Conclusion: Contract farming participation can affect farming households negatively if food security concerns are not considered into the contract farming agreements.