The dynamics of inclusion in contract farming schemes in Tanzania: Exploring the experience of contract Tobacco farmers in Urambo District in Tabora Region, Tanzania

Contract farming can benefit smallholder farmers, especially in the context of limited state support, by providing farmers with opportunities to access markets, farm inputs, credit, and technology and participate in certification schemes, enabling them to receive better prices for their crops. However, the benefits and risks of contract farming are not usually evenly distributed between participating parties in the contract, and even so, such schemes tend to exclude poor farmers. This study aims to make an empirical contribution to understanding such dynamics based on a case study in Tanzania, particularly among smallholder Tobacco farmers. It focuses on examining the dynamics of inclusion and exclusion of contract farming among tobacco farmers. Tobacco contract farming has been very important for smallholder farmers especially in terms of access to markets as well as having better prices and agreements compared to other types of agricultural models. However, there has been exclusion for some farmers and the study aimed to find out its effects. This research intended to answer how and to what extent are contract farming schemes inclusive of different social classes and groups of rural producers? This study was conducted in Tabora region, Urambo district in the villages of Imalamakoye and Kichangani. The research involved qualitative methodology where we used Focus Group Discussions and In-depth interviews. A total of 5 in-depth interviews were conducted involving two Village executive officers, a Cooperative officer, a company officer and an Agriculture extension officer. Furthermore, two FGDs were held. The results of this study have shown that farmers have faced different forms of exclusion in contract farming. Farmers seemed to be excluded or do not participate in contract farming due to the lack of social trust, entry fee, lack of access to land, being poor, lack of resources as well as being unable to repay loans in the community. The research found that the farmer relies on the bargaining power of their cooperative against the company. The criterion of not having land is one of the criterion mentioned most by the participants, but the possession of a land deed was not a necessary thing. There is a need for further study to look specifically at the effects of payment delays carried out by contract firms against the welfare of farmers.