The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal

Warning, Matthew; Key, Nigel

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Title:	The Social Performance and Distributional Consequences of Contract Farming: An Equilibrium Analysis of the Arachide de Bouche Program in Senegal
Authors:	Warning, Matthew Key, Nigel
Year:	2002
Periodical:	World Development
Volume:	30
Issue:	2
Period:	February
Pages:	255-263
Language:	English
Geographic term:	Senegal
Subjects:	contract farming small farms groundnuts Agriculture, Natural Resources and the Environment Development and Technology Labor and Employment Economics and Trade
External link:	https://doi.org/10.1016/S0305-750X(01)00104-8
Abstract:	The authors undertake an empirical case study of the impact of a contract-farming scheme on a rural community. Smallholders in Senegal's Peanut Basin contract with the 'Arachide de Bouche' (ARB) programme to provide confectionery peanuts for the international market. ARB contracting farmers receive seeds, fertilizer, pesticides and herbicides on credit and are required to sell their production to the programme. The authors examine the access of poorer community members to contracts and the effect of the programme on the income of participants. The programme performs very well on both counts: participants and nonparticipants are indistinguishable by wealth measures and farmers increase their income substantially by participating in the programme. The authors attribute the former to the programme's mobilization of local information through its use of village intermediaries, permitting the substitution of social collateral for physical collateral and making the programme more accessible to the poor. The study is based on research data collected in 1992-1994. Bibliogr., notes, ref., sum.