An economic study of the current situation of contract farming in Buhaira Governorate

Document Type : Original Article

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Faculty of Agriculture, Ain Shams University

Abstract

Contract farming, which is sometimes called contract production, is represented in the production of agricultural commodities with future agreements, and they are usually withdrawn at pre-agreed prices. The problem of price variation and its decrease from the general averages of previous seasons and years appears due to the scarcity of information and the low levels of agricultural extension, especially when farmers adopt to increase the cultivated area as a result of the high prices of some seasons, which leads to increases that exceed the expected and appropriate supply in the following years. The research aims mainly to identify the current situation of contract farming in Buhaira Governorate through the sub-objectives. The primary data was collected by designing a questionnaire from personal interviews with some farmers in the Buhaira Governorate. By studying the time trend equation for the development of the cultivated area during the period (2000-2020), it was found that the total cultivated area took an increasing trend by a statistically significant annual amount of about 6.94 thousand feddans, representing about 0.79% of the average, which is about 875.8 thousand feddans. It became clear from the opinions of the farmers of the study sample the most important items that must be included in the contract for the agricultural season 2021/2022, as the first place came “providing production requirements” with the response of 102 farmers, representing about 92.7% of the total study sample.

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