Climate Resilience VIA Climate Smart Agriculture in Tanzania: Does Contract Farming Help?

Abstract

This study aimed at assessing contract farming business model as an enabler of smallholder farmers' resilience to climate change through climate smart agriculture. To achieve this purpose the study investigated CSA technological and practical support deployed to contracted smallholder common-bean farmers by agribusiness company (G2L Co Ltd); assessed productivity differences between contracted and non-contracted farmers and assessed policy related obstacles to implementing contract farming. The study employed a mixed design which administered survey tool (on 241 farmers) complemented by FGD and scheduled interviews of extension staff from the government and the agribusiness company. Results indicate that farmers received specific practical training on CSA and climate smart inputs such as early and disease resistant bean seeds, inoculants, and fertilizers. There was significant difference in productivity of common beans (measured by yield per acre) before and after farmers were contracted into contract farming with the agribusiness company and between contracted and non-contracted farmers. This difference was attributed to support the contracted farmers received from the agribusiness company (G2L). However, a number of policy-related constraints seem to hinder effectiveness of contract farming in the country. Overall, this study demonstrated that contract farming business model between agribusinesses and smallholder's synergic arrangement that provides viable mechanisms that promote farmers resilience to climate change.