Bayesian Analysis of Farmers’ Decision to Sell Nothing or Some Output Through Contract Farming

Contract farming (CF) is a pre-output agreement between agricultural producers and buyers. CF helps to integrate farmers in developing countries to global agricultural value chains (Barrett et al. 2012). But research also shows that value chain intermediary agents acquire superior earnings than farmers. This study employs a Bayesian zero-one-inflated beta regression model to analyzes determinants of farmer’s decision to sell zero or some output in CF.