Effect of private-led contract farming on rice growers’ yield, cost, selling price and return: evidence from Vietnam’s central Mekong Delta RESEARCH ARTICLE

Abstract

This study attempts to examine the effects of contract farming on rice growers’ productivity and profitability in terms of yield, cost, selling price and return in Vietnam’s Mekong Delta using different propensity-score matching techniques. By using cross-sectional data collected from 166 rice farmers located in the central Delta, the findings reveal that participation in a contract scheme has a robust positive significant effect on rice farmers’ output price and return but has no impact on yield and variable cost. The results of this study suggest that contract farming led by export enterprise enables rice farmers to raise their output price and profitability, which may magnify their household income.