ABSTRACT
Institutional innovations in the high-value food chain and their socio-economic implications are of topical interest in policy discourse in Bangladesh. The contract is one of the institutional innovations, and this study explores the determinants of participation and the impact of CF (contract farming) on the economic welfare of farmers, along with the adoption of food safety practices in Bangladesh. The analysis indicates that better access to agricultural extension services, participation in community meetings, membership of farmers’ organizations, access to more credit, distance from output market and larger herd sizes affect farmers’ participation in CF positively. We also find that network variables, such as time spent with cooperatives and other institutions, price fluctuation and realization of average prices, are strongly associated with participation in contract farming. We find that contract farming has a robust positive impact on welfare measured by expenditure, farm profit and farm productivity.
