Author : Tuan, Nham Phong

Summary : Contract farming is seen as one of the measures to facilitate participation of farmers in commercial agriculture, adding more value to agricultural products. Vietnam, however, shows mixed evidence on the well-known advantages of contract farming to small farmers such as reduced cost of accessing the market; access to credit information on market opportunities or new technologies, inputs, and product markets; and reduced price fluctuations. This study analyzed the impact of contract farming on farmers and identified policies that may facilitate farmers’ entry into beneficial contractual relationships. In addition to the literature review, an intensive case study of cassava contract farming was conducted. Data were analyzed using a dual-method approach—governance and institutional analysis and a pro-poor analysis. Factors found to be important to contract farming are extension services, farmer empowerment (technical and managerial), and capacity building of the farmer organization. The results from the study have direct relevance to stakeholders of contract farming, either through practical field support or through policy advocacy.