ASSESSMENT OF THE EFFECT OF CONTRACT FARMING ON HOUSEHOLD'S WELFARE OF OIL PALM FARMERS IN EKITI STATE.

This study assessed the effect of contract farming on the household welfare of oil palm farmers in Ekiti State. Contract farming has emerged as a strategy to enhance agricultural productivity, ensure market access, and improve the livelihoods of smallholder farmers. Despite its potential benefits, there is limited empirical evidence on how participation in contract farming influences the socio-economic conditions of oil palm farmers in the state. The study adopted a survey research design. Data were collected from 120 oil palm farmers using structured questionnaires and interviews. The respondents included both farmers participating in contract farming schemes and those practicing independent farming. Data analysis was conducted using descriptive statistics, such as percentages and means, as well as inferential statistics, including multiple regression analysis, to determine the relationship between contract farming and household welfare. Findings from the study revealed that participation in contract farming significantly improved household welfare. Farmers engaged in contract farming experienced increased income, improved food security, access to farm inputs and credit, and better educational opportunities for household members. The study also identified challenges affecting contract farming, including delays in payments, unfavorable contract terms, and inadequate technical support from contracting companies.