Livelihood Outcomes of Agribusiness-Led Contract Farming among Smallholder Maize Farmers in Kaduna State, Nigeria: Evidence from the Tomato Jos Out-Grower Scheme

Abstract

Agribusiness-led contract farming has increasingly emerged as an important mechanism for integrating smallholder farmers into commercial agricultural value chains. This research evaluated the livelihood outcomes associated with participation in the Tomato Jos Out-Grower Scheme among smallholder maize farmers in Kaduna State of Nigeria. Purposive sampling method was used to choose 180 active farmers from a group of 600 registered out-growers. Structured questionnaires were used to collect primary data, which wasthen analysed using descriptive statistics and multiple regression analysis. The results showed that most farmers are men (82.2%), own less than one hectare of land (96.7%), and rely on farming as their main source of income (72.8%). Multiple regression analysis revealed that farm size, land tenure, educational attainment, and income source significantly influenced livelihood outcomes among participating farmers. Taking part in the programme led to clear gains in crop yield, income, market access, and food security. Nevertheless, restricted access to credit persisted as the paramount limitation (97.8%). The study finds that contract farming led by agribusiness greatly improves the lives of smallholder farmers, but the results are different for people with different socio-economic backgrounds. Enhancing the efficacy of development initiatives requires policies that facilitate loan availability and secured land tenure arrangement.