Author : Candle Sidthisone

Summary : This study investigates farmers' participation in and the socio-economic benefits derived from sugarcane contract farming in three villages in Atsaphangthong District, Savannakhet Province, Lao PDR. The research assesses the dynamics and implications of sugarcane contract farming for local community development utilizing primary and secondary data from 154 farmer-households, complemented by focus group discussions (FGDs) and key informant interviews (KlIs). Respondents are predominantly middle-aged (40-60 years old), male, married, and from the Laoloum ethnic group. Also, most of the respondents have low educational attainment, with primary education being the highest level completed. Farming emerged as the primary occupation, with cash crop farming serving as the main income source, supported by rice farming and other minor activities. Households were moderately large, with a small proportion of members actively engaged in work. Majority of the respondents had 3 to 10 years of experience in sugarcane contract farming. The analysis revealed that perceptions of sugarcane contract farming and the length of contract farming were significant socio-demographic variables influencing participation. Strong positive correlations were found for land preparation, care and maintenance, and harvesting practices, while weaker or non-significant correlations were observed in activities such as seed supply, distribution, capacity building, and monitoring. Regarding socio-­economic benefits, participation for cooperation showed a statistically significant positive correlation with household-level benefits, whereas other forms of participation exhibited weaker or non-significant correlations. The study concludes that sugarcane contract farming can lead to socio-economic benefits at the household level, particularly when cooperation is emphasized. However, limited impacts were observed at the community level, indicating the need for more inclusive and empowering approaches to contract farming. A participatory model is proposed to address these limitations, focusing on fostering collaboration, empowering farmers, and ensuring equitable resource distribution. The model seeks to enhance cooperation, promote sustainable practices, and ensure fair benefit-sharing among stakeholders to create a more inclusive framework for sugarcane farming.