ANALYSIS OF FACTORS INFLUENCING SMALLHOLDER FARMERS’ PARTICIPATION IN TOBACCO CONTRACT FARMING AND ITS IMPACT ON LAND PRODUCTIVITY. A CASE OF HURUNGWE DISTRICT, MASHONALAND WEST PROVINCE, ZIMBABWE.
Date
2020-12-08
Authors
Ziyadhuma, Prosper
Journal Title
Journal ISSN
Volume Title
Publisher
UNIVERSITY OF ZIMBABWE
Abstract
This study used farm level data from Hurungwe district in Mashonaland West province of
Zimbabwe to estimate a logistic regression to identify factors that influence smallholder farmers’
decision to participate in tobacco contract farming. The results reveal that age and distance to the
main road negatively influence while gender, farming experience, education level, access to
internet and firm reputation positively influence smallholder farmers’ decision to participate in
contract farming. To determine the impact of contract farming on land productivity (yield per
hectare) between contract farming participants and their counterparts who did not participate,
the treatment evaluation model with the associated propensity score matching (PSM) was used.
The model permits comparison in terms of yield per hectare between the two groups after
controlling for other observable and non-observable smallholder farmer characteristics. The
estimated results support the hypothesis that contracted tobacco farmers obtain higher yield per
hectare than non-contracted farmers do. The study recommends that the government of Zimbabwe
through the ministry of agriculture should create an environment comfortable for tobacco
contracting firms and tobacco farmers to work together since tobacco contract farming increase
farmers’ yield. More so, policies that aim to encourage farmers’ education and farmer’s access to
internet are important since educated farmers participate more in tobacco contract farming