A Comparative Economic Analysis of The Most Important Economic Indicators of Contractual and Non-contractual Farming of Potato Crop

Fawaz, Mahmoud; Ragab, Hoda; Eladawy, Roshdy; Etman, Hader

doi:10.21608/jsas.2019.11123.1141

A Comparative Economic Analysis of The Most Important Economic Indicators of Contractual and Non-contractual Farming of Potato Crop

Document Type : Original Research Paper

Authors

¹ Department of Agricultural Economics,Faculty of Agriculture,Kafrelsheikh University , Egypt

² Head of Research, Agricultural Economics Research Institute, Agricultural Research Center

10.21608/jsas.2019.11123.1141

Abstract

Due to the lack of integration between the production and marketing processes in the agricultural sector in general and potato crop in particular, which makes small farmers unable to optimize the marketing of their products Which requires the search for a marketing system that ensures farmers to market their crops, which requires the interest of this research to identify the economics of contract farming and to identify the most important advantages and disadvantages of the contractual system of potato crop. The research was based on a number of research methods, including descriptive and quantitative methods of the variables studied and the study of production costs. The research relied on two sources of data: the primary data is through a questionnaire questionnaire collected by personal interview; secondary data published and unpublished. The research aims at conducting a comparative economic analysis between Contractual and non-contractual farming of the study crop, and to identify farmers 'views on the advantages and disadvantages of contract farming and the reasons for farmers' reluctance to do so ,The results indicate that the net yield of potato crop contractual and non-contractual about 7018,092 pounds, 6090,243 pounds respectively The research recommended contracting cost sharing contracts in which the duties and rights of the parties to the contract are determined, the contracting parties' commitment to the terms of the contract, the dates of delivery of the production requirements and the receipt of the crop, the necessity of providing regular guidance services to the farmers

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