An assessment of the suitability of contract farming models being implemented in Zimbabwe and their impact on agricultural growth (2010 to December 2014)

Abstract

This study was carried in wake of the challenges bedevilling the once lucrative contract

farming business where a number of contract farming funders withdrew their

arrangements citing side marketing, failure to repay loans while farmers complain about

prices offered by funders which are too low for sustainability. It is to be established if the

increase in the level of tobacco production is commensurate with beneficiation of both

contracting parties. The purpose of this is to assess the suitability of contracting farming

models being implemented in Zimbabwe and their impact on agricultural production. The

study sought to assess the contract farming models, determine the experience and level of

education of farmers, the farmers’ understanding of the legal basis of contract farming, to

explore conducive conditions for successful contract farming and assess the impact of those

models to agricultural production. In this study a population of three thousand contract

farmers was used, a sample of one hundred tobacco farmers from Hurungwe district was

selected using purposive sampling. Data was collected using self-administered

questionnaires and face to face interviews. The collected data was collated and analysed

using SPSS and was presented in tables, graphs and charts. The key findings of the study

were that contract farming models are not suiting the farmers needs although contract

faming has opened new markets for farmers. There are limited contract farming models

available to farmers and this has created a monopoly to funders. Farmers are not being

involved in the drafting of the contracts to which they will sign. Farmers are experiencing

challenges which centre on the way the contracts are drawn and there are untapped

opportunities from tobacco contract farming. The researcher recommends that

Government of Zimbabwe should play an active role in the management of these

contracts to protect farmers. More funders should be registered to break monopoly and

farmers should be given choices of models to choose from.