Determinants of Contract Farming Adoption: An Inclusive Business Analysis of the Cotton Sector in Zambia

This study explores the factors influencing the adoption of contract farming in the cotton sector through a logistic regression model. The analysis identifies key determinants, including cotton price, price mechanisms, extension services, market access, competition, production costs, and mechanization, which significantly encourage contract farming. Although age and gender are not significant predictors, gender dynamics highlight systemic inequalities. Transparent pricing and market access agreements emerge as critical motivators, mitigating uncertainties and fostering farmer participation. Mechanization and cost reduction play pivotal roles in improving productivity and profitability, while extension services and market connectivity provide resources and opportunities essential for engagement. Conversely, competition from alternative cash crops presents challenges that require targeted policy interventions. These findings underline the need for tailored policies, investments in agricultural technology, and support programs to enhance the sustainability and inclusiveness of contract farming, ultimately contributing to the empowerment and economic resilience of smallholder farmers.