Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

A Way Forward To Promote The Farming Contracts Between Firms And Farmers In Cultivation Productions: A CASE STUDY Of VIETNAM

Version 1 : Received: 18 October 2020 / Approved: 19 October 2020 / Online: 19 October 2020 (15:51:04 CEST)

How to cite: Van Song, N.; Huyen, V.N.; Thuy, N.T.; Tien, D.V.; Ha, T.V.; Diep, N.X.; Huyen, V.T.K. A Way Forward To Promote The Farming Contracts Between Firms And Farmers In Cultivation Productions: A CASE STUDY Of VIETNAM. Preprints 2020, 2020100395 (doi: 10.20944/preprints202010.0395.v1). Van Song, N.; Huyen, V.N.; Thuy, N.T.; Tien, D.V.; Ha, T.V.; Diep, N.X.; Huyen, V.T.K. A Way Forward To Promote The Farming Contracts Between Firms And Farmers In Cultivation Productions: A CASE STUDY Of VIETNAM. Preprints 2020, 2020100395 (doi: 10.20944/preprints202010.0395.v1).

Abstract

In an age of market liberalization, globalization, and expanding agribusiness, there is a danger that small-scale farmers will find difficulty in fully participating in the market economy. One of the solutions to solve the above situation is to strengthen linkages between farmers and firms through contract farming. The purpose of this study is to assess the factors affecting the level of linkages between businesses and farmers in crop development in Thai Binh province, Vietnam. The two main research methods used were exploratory factor analysis (EFA) and regression analysis with survey data which was conducted from 300 farmers, 10 firms, and 15 factors related to contract-farming. The results indicated that there are 5 factors that significantly affect the level of participation of farmers in the linking process, the order of impacts from strong to weak is as follows: (1) Commitment and sharing of benefits and risks between farmers and firms in the linking process, (2) Issues related to management skills and enterprises capacity of link firms, (3) Price issues that farmers are interested in in the process of implementing links with firms, (4) Policy environment - Institutions related to farmer contracts between firms and farmers, (5) Household awareness about the benefits brought about by farmer contracts with firms. Based on results, a number of specific solutions have been proposed to enhance the efficiency of farming contracts between firms and farmers in cultivation production.

Subject Areas

Keywords: farm contracts, firms, farmers, cultivation production, Thai Binh.

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