Impact of Contract Farming on the Capital Formation at the Farm Level: An Empirical Investigation in Karnataka

Sri. S. B. Bommanahalli; Dr. K.B.Rangappa

Volume : VI, Issue : II, February - 2016

Impact of Contract Farming on the Capital Formation at the Farm Level: An Empirical Investigation in Karnataka

Sri. S. B. Bommanahalli, Dr. K. B. Rangappa

Abstract :

Impact of contract farming in hyid chilly seeds as well as in Gherkin on the capital formation has been assessed by using primary data collected from the farm households. Survey has been conducted during 2014–15 in a cluster of villages from Kudligi taluk of Bellary district as well as from another cluster of villages from Harapanahalli taluk of Davangere district. The results of the survey clearly reveals the significant impact of contract farming on the ownership of capital assets like pesticide sprayers, farm buildings and drip irrigation implements. The percentage of hyid chilly seeds contract farmers who were having pesticide sprayers, drip irrigation implements as well as farm building was relatively more for the period after the inception of contract farming compared to the period before the period of contract farming.