Contract farming , a conditional arrangement on inputs and/or output between farmers and buyers, could increase rice farm productivity in Nepal by 7%, according to a recent study by agricultural economists published in Wiley Periodicals.
Research results indicated that the rice yield gap between contract and independent (non-contract) farmers is significant at 13%, which could partly be attributed to contract farming. Findings indicated that participation in contract farming increased the average farm productivity levels of paddy seed farmers from 87% to 94%.
