Integrating Small Scale Farmers into Bread Wheat Marketing Chain through Contract Farming in Ethiopia

The treatment effect censored regression model results of this study showed that educational level, value of agricultural equipment and number of oxen owned affected the participation decisions of the farmers in bread wheat contract farming significantly. The most important factors that determine gross margin obtained from bread wheat production were contract farming experience, the number of oxen owned and participation in contract farming. However, technical efficiency differences and management practices followed were not the reasons for differences in gross margin between the participant and non-participant farmers.