Economic Impact Of Contract Farming On Income Of Smallholder Farmers: Case Study Of Paprika Contract Farming In Mbozi District-Tanzania

ABSTRACT 

This study provides empirical evidence on economic impact of contract farming on the income of smallholder farmers of non traditional crops. Specifically it analyses the requirements for farmers’ participation, factors that determine income and effect of paprika contract farming on household income and identifies constraints and prospects of contract farming. A cross section research design was adopted and a purposeful sampling procedure was used to select villages and wards and a total of 150 farmers were selected randomly for interview. Using probit model, results show that access to credit, livestock ownership, marital status and access to extension services increase the probability of farmers’ participation in contract farming at (p