Contract farming and its impact on income and livelihoods for small-scale farmers: case study in Vietnam

Abstract

Contract farming has been expected as one of the measures to facilitate participation of farmers in the production of agriculture commercially, adding more values to agricultural produces. Mixed evidence in Vietnam however, has been shown on the wellknown advantage of the contract farming to small farmers such as reduce the cost to access to market, accessing credit, obtaining information on market opportunities or new technologies, purchasing certain inputs and accessing product markets and reducing price fluctuations. The purpose of this study was to analyse the impact of contract farming to farmers and to determine policies to facilitate farmer entry into beneficial contractual relationships. In addition to the literature review, one intensive case study of contract farming practices with commodity was conducted. The results from the study have direct relevance to work of agencies and organizations working to promote the welfare of small holding farmers, either through practical field support or through policy advocacy.