Integrating Farmers into Contract Farming in Peripheral Rural Areas in China

Debates persist regarding the win/lose dichotomy of the implications of contract farming (CF). We address these debates by examining the rule configurations of CF and the power dynamics behind it in a case study in a peripheral rural area in China. Using the Institutional Analysis and Development (IAD) framework, we investigate the rule configurations of land use, labor relations, and value distribution under CF schemes in Sanxing Township, Southwest China. The findings reveal that, although farmers lose control over their land and labor to a certain extent, they can benefit from adjustments in pricing and redistribution rules. Farmers’ resistance, village collective organizations, and local political resources contribute to farmers defending their rights in CF. Therefore, we argue that CF is neither an inclusive alternative to large-scale land acquisitions, nor does it always place small farmers in disadvantaged positions. We underscore the significance of moving beyond the “win–win” and “win–lose” debates to focus on the different levels of power struggles when assessing the implications of agricultural development programs.