Contract farming and decision to adopt rice production : Case of rice cultivation in the BAMA plain in Burkina Faso.

Abstract

Rice in Burkina Faso occupies an important place in household consumption. However, the supply of rice on the national market does not cover local demand. This is not necessarily linked to a problem of underproduction but often to a problem of selling paddy. This study seeks to identify the factors that can motivate a farmer to commit to a sales contract. The data used are primary data from 2016, collected on the Bama plain in Burkina Faso on a sample of 282 rice farmers drawn randomly according to the formula of Dawson Saunders and Trapp. Two estimation models were used. First, the conditional Logit model by considering the homogeneity in the adoption choices of the producers and then the random mixed Logit model by considering that the choices are heterogeneous. The econometric results show that producers have preferences with respect to the types of contracts offered and that their choices are significantly influenced by the criteria intrinsic to the contracts.