EFFECT OF CONTRACT FARMING ON RICE YEILD IN BONTANGA IRRIGATION SCHEME

Abstract

Contract farming, which involves an agreement between a farmer(s) and buyer under specific conditions is supposed to yield mutual benefits. It has gained grounds in Ghana’s rice production sector including rice farmers in the Bontanga Irrigation Scheme. Farmers are expected to get higher yields through the provision of necessary improved inputs and management advice by the contractors. Meanwhile, there is no empirical evidence on the effect of contract farming on rice yield in the Bontanga Irrigation Scheme. This study aimed to examine the effect of contract farming on rice yield in the Bontanga Irrigation Scheme. A multi-stage sampling procedure was employed to select a total of 130 respondents. Heckman treatment effect model and Kendall’s coefficient (W) of Concordance were employed as analytical methods for achievement of the objectives. The study revealed that household size, farmer-based organization membership, labour, fertilizer, weedicides and pesticides positively affected rice yield. Extension service had no improvement or positive contribution to yield which could be due to poor extension delivery. The seed used also negatively affected rice yield. Small farm size and strict specification of contractors were respectively the most pressing and least pressing constraints associated with farmers` decision to participate in contract farming in the study area. The study recommends that Ghana Irrigation Development Authority (GIDA) should increase the irrigable land in the area so that farmers can access more land for farming. The Ministry of Food and Agriculture (MoFA) should also stimulate farmers to participate contract farming and provide support through intensified input subsidization and collateralization