Determinants of Farmer Participation in Hybrid Maize Seed Contract Farming: A Case Study of Seed-Co Zimbabwe Growers

Abstract

The study investigated and analysed the determinants of farmer participation in hybrid maize seed contracting farming. In carrying out the study there was use of cross sectional survey data collected from a random sample of 94 Seed Co contracted hybrid maize seed growers for the 2019/20 production season. What motivated the study was high seed grower turnover characterising low seed volumes by seed houses and failure to satisfy national demand of hybrid maize seed annual seed requirements. Factors influencing farmer participation were derived from the binary logistic regression using Statistical Package for Social Sciencitis(SPSS). Findings indicated that gender and region were insignificant factors at 5% level of significance to influence seed grower decision to adopt or disadopt the hybrid maize seed contract arrangement. Availability of labour and farm equipment (mechanization) were found to be significant determinants of farmer participation. Lack of collateral, limited or no access to finance and irrigation facilities by the seed growers negatively influenced participants to adopt the hybrid maize seed contract farming arrangements. Another significant factor revealed by the study is the time taken for maize seed farmers to receive payment for their produce especially in this runaway inflationary environment. Time value of money is really critical. So the longer the time taken to pay the less attractive the hybrid maize seed contract becomes. The results show that there is room to improve if a multi-pronged approach to address the problems is adopted which include, grower capacitation by seed houses in the area of irrigation infrastructural development, farm equipment purchase. Increasing and extending lines of low cost funding through state banks like the Land Bank and also coming up with products that require lowered collateral requirements. On the part of seed growers it is recommended that they be loyal and commit themselves to the obligations of the contract so that consideration can be given to their plight.