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Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana

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  • Awal Abdul‐Rahaman
  • Awudu Abdulai

Abstract

Despite the fact that contracting facilitates farmer participation in agrifood value chains, evidence on farmers’ participation in different forms of contracts and the impact on farm performance is still limited. This study examines the determinants and impacts of vertical coordination mechanism‐spot market transactions, written, and verbal contract‐on‐farm performance of rice farmers in northern Ghana, using a multinomial BFG model to account for selectivity bias. The findings indicate that vertical coordination participation decision is significantly influenced by age, access to credit, labor, association membership, and sales to institutional buyers. The empirical results also reveal significant gains in farm performance outcomes from participating in written and verbal contracts, relative to spot market transactions.

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  • Awal Abdul‐Rahaman & Awudu Abdulai, 2020. "Vertical coordination mechanisms and farm performance amongst smallholder rice farmers in northern Ghana," Agribusiness, John Wiley & Sons, Ltd., vol. 36(2), pages 259-280, April.
    • Handle: RePEc:wly:agribz:v:36:y:2020:i:2:p:259-280
    DOI: 10.1002/agr.21628
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    3. Zhihui Gao & Xinrui Liu & Xinling Zhang, 2024. "The Impact of Tie Strength on the Sustainable Participation of Farmers in Contract Farming: An Empirical Study in Inner Mongolia, China," Sustainability, MDPI, vol. 16(4), pages 1-17, February.
    4. Wen Li & Chenying Liu & Qizhi Yang & Yulan You & Zhihang Zhuo & Xiaolin Zuo, 2023. "Factors Influencing Farmers’ Vertical Collaboration in the Agri-Chain Guided by Leading Enterprises: A Study of the Table Grape Industry in China," Agriculture, MDPI, vol. 13(10), pages 1-14, September.
    5. Francisco Benitez‐Altuna & Valentina C. Materia & Jos Bijman & Daniel Gaitán‐Cremaschi & Jacques Trienekens, 2024. "Farmer–buyer relationships and sustainable agricultural practices in the food supply chain: The case of vegetables in Chile," Agribusiness, John Wiley & Sons, Ltd., vol. 40(1), pages 3-30, January.

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