Contract farming and out-grower schemes Appropriate development models to tackle poverty and hunger?
This briefing is a literature review of out-grower schemes and contract farming to inform ActionAid’s perspective.
Out-grower schemes (often referred to as contract farming in academic and other literature) are an important component of many current public-private partnerships (PPPs) in developing countries, including the G8’s New Alliance. Such schemes often appeal to farmers because the company often provides inputs and production services. In addition, farming incomes can rise and such schemes often open up new markets and provide new technology.
But they also present several major problems. Out-grower schemes and contract farming often exclude precisely the groups that ActionAid works with most: the poor, women, the landless, and marginal or subsistence farmers.