Received: 09-08-2013 / Accepted: 21-11-2013
This paper compares profitability of rice production between contract and non-contract farmers in An Giang province of the Mekong delta in order to measure the role of contract farming in economic performance of rice growers. The present paper also analyzes households’ characteristics associated with participation in rice contract farming and explores constraints to contract farming practice by farmers’ perspective. The findings showedthat contract farmers are likely to get significantly higher net returnthan non-contract farmers but their production costs are also much higher; particularly, labor cost is remarkably higher. We also found not a few evidences that there is a sharp association of joining farmer’s organizations with participation in rice contract farming, large farmers and farmers residing in favorable location are more likely to be selected for contract participation, implying that small farmers will be marginalized in the contract scheme.