What factors determines a farmer’s decision to participate in contract farming? The case of leaf tobacco in Kiryandongo district of Uganda

Contract farming (CF) is viewed as a pro poor strategy to enhance agricultural production and overcome production and marketing constraints of smallholder producers. This is due to the benefits it offers to smallholder farmers. Despite the benefits, CF is characterized by frequent entry, exit and re-entry of participants to the scheme, majorly due to breach of contract agreements by either farmers or firms engaged. This lowers the potential benefits as well as participation of farmers in CF. This study assessed factors influencing leaf tobacco farmers’ decision to participate in CF. Data were collected using structured questionnaires from a sample of 380 leaf tobacco farmers selected using a multi-stage approach. Data analysis involved both descriptive and logistic regressions. Results showed that farmers decision to participate in CF significantly depended on farmer’s experience in tobacco production, their access to credit and gender. The study recommends special focus on female farmers while promoting CF since males were more likely participate in CF than female. Key words: Contract farming, gender, tobacco production, Uganda