Factors Influencing Smallholder Rice Farmers' Participation in Contract Farming in Taraba State, Nigeria

Abstract

This study aims to investigate the factors that influence smallholder rice farmers to participate in contract farming in rural communities of Taraba State, Nigeria. Multi-stage sampling was adopted to select a sample of households engaged in contract farming; other secondary data were sourced from relevant literature and reviews. Determinants of contract participation by farmers and households were evaluated using descriptive and other relevant econometric models. Data on socioeconomic characteristics, the operational constraints associated with various contract models used by farmers accessed with the use of questionnaire were assessed using relevant statistical tools. Data analyzed indicates that 70% of respondents were males and 30% females, a reflection of the male dominance in contract farming in the study area. 62% of respondents adopt the traditional or informal contract scheme popularly known in local parlance as badakaka while 38% are involved with formal agro-enterprises engaged in contract farming in the study area. 74% of respondents have large households comprising of between 5-10 dependents which is suitable for contract farming in view of labor availability. 84% of respondents are not knowledgeable enough to understand the technicalities involved with contract even though data reveal that 91% are educated with a minimum of secondary education. 67% of respondents are not members of any cooperative while 33% belong to cooperative groups. 97% report they get supports from sponsor when they sign to contract farming arrangement. It is recommended that government should be deliberate about strengthening social capital which is critical for confidence building among citizens to belong to cooperative movements. Agricultural extension services should be enhanced and harnessed to train farmers not only on farming methods but other business strategies and adoption of modern technology especially as it relates to linkages and networking.