The Constraints Facing Contract and Non-Contract Rice Farmers: Evidence from Benue and Niger States, Nigeria

Abstract

This study examined the constraints facing contract and non-contract rice farmers: evidence from Benue and Niger States, Nigeria. A multi-stage sampling design was used to select 400 rice farmers comprising 200 contract rice farmers and 200 non-contract rice farmers. Primary data were collected from a well-structured questionnaire survey. Data were analyzed using descriptive statistics, principal component model and Kendall’s’ coefficient of concordance. The results revealed that contract farmers possess larger average household sizes (17.5 members) and more farming experience (17.3 years) compared to non-contract farmers (6.8 members and 13.5 years). Additionally, contract farmers manage larger landholdings (3.2 hectares) than their non-contract counterparts (2.4 hectares).The principal component analysis (PCA) and Kendall’s coefficient of concordance were employed to rank the challenges facing both groups. For contract farmers, PCA identified inadequate capital and discrimination in land access as primary components, while Kendall’s rank identified farmer-herder clashes and price fluctuations as the most pressing constraints. Conversely, non contract farmers are most significantly burdened by rice smuggling, gender inequality in resource access, and high input costs. While contract farming provides a framework for structured production, both groups remain vulnerable to external shocks and systemic inefficiencies. The findings suggest that while contract arrangements may offer better access to land and experience-sharing, they do not fully insulate farmers from security threats and capital deficiencies. To enhance rice productivity, policy interventions must address broader issues of rural security, credit accessibility, and market protection from smuggled imports.