Jump to ContentJump to Main Navigation
African Successes, Volume IVSustainable Growth$
Users without a subscription are not able to see the full content.

Sebastian Edwards, Simon Johnson, and David N. Weil

Print publication date: 2016

Print ISBN-13: 9780226315553

Published to Chicago Scholarship Online: May 2017

DOI: 10.7208/chicago/9780226315690.001.0001

Show Summary Details
Page of

PRINTED FROM CHICAGO SCHOLARSHIP ONLINE (www.chicago.universitypressscholarship.com). (c) Copyright University of Chicago Press, 2022. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CHSO for personal use.date: 30 June 2022

Contract Farming and Agricultural Productivity in Western Kenya

Contract Farming and Agricultural Productivity in Western Kenya

(p.137) 4 Contract Farming and Agricultural Productivity in Western Kenya
African Successes, Volume IV

Lorenzo Casaburi

Michael Kremer

Sendhil Mullainathan

University of Chicago Press

We use new data from the administrative records of a large Kenyan sugarcane contract farming scheme to study participation and productivity among outgrowers. First, we relate the origins and the impact of the scheme targeted by our study to the existing literature on contract farming. Second, after providing some institutional background and introducing the data, we look at farmers' participation, focusing on entry, exit, and plot sizes within the scheme. Third, we focus on yields and farmers' net revenues per hectare. After documenting the trends in these variables, we find that producer unobserved heterogeneity and plot size explain a large share of the variance in yields. We conclude by arguing that, in the presence of labor market imperfections that would make plantations inefficient, contract farming can enable producers to take advantage of relevant economies of scale, while preserving the existing allocation of land property rights.

Keywords:   contract farming, agricultural productivity, cash crops, Kenya

Chicago Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.