Productivity of Small-Scale Cotton Farmers in Bunda District: Does Contract Farming Matters?

Abstract

This study examines the impact of contract farming on the productivity and welfare of small-scale cotton farmers in Bunda District. A sample of farmers were purposively selected, and data were collected using structured questionnaires, interviews, and literature reviews. Both qualitative and quantitative methods were used for analysis.The findings indicate that socio-economic factors such as marital status, income level, and family support significantly influence the adoption of contract farming. Additionally, contract farmers achieved higher yields and incomes compared to non-contract farmers, benefiting from lower long-term investment costs, improved access to inputs, and better pest control measures. Statistically, significant differences were observed between contract and non-contract farmers in terms of productivity and income.Despite its advantages, contract farming faces challenges, including delays in input provision by ginners, contract breaches by farmers, and inadequate farm management among non-contract farmers. To enhance the effectiveness of contract farming, the study recommends revising contract terms, improving pest control strategies, ensuring timely input supply, and providing farmer training programs.

Keywords: Contract farming, Productivity, Welfare, Income generation