POLICOFA Project aims to understand the role and importance of contracts for small-scale farming of selected crops (sugar cane, tobacco, sunflower and cotton). Moreover, the project aims to understand how formal credit matters in contract farming arrangement. The specific objectives of the project are:
- To determine the levels of technical efficiency of smallholders in contractual relationships against benchmarked standards;
- To identify the factors causing technical efficiency of the contract smallholder by examining the relationship between efficiency level and possible factors;
- To establish the extent to which smallholders under contract have access to formal credit for agricultural production;
- To assess whether credit matters by comparing the performance of contract arrangement with a) contract arrangements without formal credit availability, and b) ‘spot-market’ arrangements;
- To understand the wider context and conditions for contract implementation in terms of governance and regulation within the corresponding value chains;
- To consider implications for policy mechanisms and strategies for improving commodity production efficiency and access to formal credit via contract farming.
For More Information about the Project Please Visit: