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Contract Farming in China: Perspectives of Smallholders in Vegetable Production

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  • Li, Xiaokang
  • Guo, Hongdong
  • Li, Lin

Abstract

Contract farming in development countries has become popular, and this is the same for vegetable production in China. The purpose of this paper is to investigate the impact of production attributes of different vegetables on farmers’ decision of contract farming participation, as well as examine the impact of marketing contracts on net returns. The results revealed that the harvest and marketing times, perishability, certification of the vegetables, and price fluctuation have significantly positive effect on vegetable farmers’ contract farming participation, respectively. A PSM method is employed to estimate the impact of contract farming on net returns of vegetable production, and find out the effect is insignificant.

Suggested Citation

  • Li, Xiaokang & Guo, Hongdong & Li, Lin, 2016. "Contract Farming in China: Perspectives of Smallholders in Vegetable Production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235573, Agricultural and Applied Economics Association.
    • Handle: RePEc:ags:aaea16:235573
    DOI: 10.22004/ag.econ.235573
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    2. Viet Hoang, 2021. "Impact of Contract Farming on Farmers’ Income in the Food Value Chain: A Theoretical Analysis and Empirical Study in Vietnam," Agriculture, MDPI, vol. 11(8), pages 1-16, August.

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