Do Product Attributes affect Farmer's Contract Farming Participation? Evidence from Vegetable Production in China

The rise of contract farming is one of the most important changes in modern agriculture. Yet the adoption of these new forms of organization has varied widely across commodities. Vegetable, with more rich varieties compared with other agricultural sections, as the representative of high value agricultural products plays an important role in the development of agricultural economics and the improvement of farmers' income. With the rapid emergence of contract farming in recent decades, China is leading the developing world in vegetable production. By using household survey data, this study aimed to explore the linkage between production attributes of different vegetables and 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 propensity score matching (PSM) method is employed to estimate the impact of contract farming on net returns of vegetable production, and find out the effect is insignificant. Acknowledgement : The paper is funded by the National Natural Science Foundation of China (Grant No.71333011; Grant 71473218).

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JEL Codes:
Q13; C13

 Record created 2018-10-02, last modified 2020-10-28

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