We have developed contracts that have been tested both in the laboratory and in the field to improve small farmers’ welfare in Vietnam, Tanzania, and Peru. Our innovation is that we implemented these contract structures in a field setting, which is an ideal venue because of the diverse geography, the potential for contract farming with agricultural products, and the on-site technical support provided to implement the contract structures. The contracts have been applied in several rural communities selected through a typology of micro-regions that will serve as a scaling-up device of the results of the project. The proposed research approach will show which contract structures work under what conditions and will measure improvements to overall farmer welfare (income and poverty levels).
Experimental approaches to innovation in agricultural markets with small farmers
International Food Policy Research Institute (IFPRI)