Village and Development

Village and Development

Analysis of the Factors Influencing the Enhancement of Contract Farming in Rural Production Cooperatives of Chaharmahal and Bakhtiari Province

Document Type : Original Article

Authors
A. Bagheri 1
H. R. Amel Ardestani 2
1 Assistant Professor, Department of Agriculture, Payame Noor University, Tehran, Iran.
2 Assistant Professor, Department of Business Management, Payame Noor University, Tehran, Iran.
10.30490/rvt.2025.367511.1695
Abstract
Introduction
Contract farming, as one of the modern approaches to managing agricultural production, can be regarded as a mechanism for governing transactions and fostering collaboration among different actors in the agricultural value chain. This system enhances smallholder farmers’ access to markets, thereby improving their income levels and reducing risks. Given the multidimensional significance of this phenomenon, identifying and prioritizing the factors influencing its Enhancement is of particular importance. Accordingly, this study seeks to identify the key criteria and sub-criteria affecting the Enhancement of contract farming in Chaharmahal and Bakhtiari Province and to determine their relative weights.
Materials and Methods
From the perspective of research objectives, this study is applied in nature, while in terms of methodology, it is descriptive–survey based. The statistical population consisted of 55 individuals, including CEOs and chairpersons of rural production cooperatives, experts and specialists in rural cooperative management, as well as university professors with expertise in this field. The sampling method was purposive, conducted through a snowball approach. Using the Delphi method and semi-structured interviews, the criteria influencing the improvement of Enhancement in contract farming were identified. After coding with MAXQDA18 software, they were measured on a five-point Likert scale over two rounds, ultimately resulting in the extraction of 5 main criteria and 28 sub-criteria. For prioritization, the Analytical Hierarchy Process (AHP) was applied based on expert judgments and the nine-point scale.
Results and Discussion
The findings revealed that internal organizational factors, with the highest weight (0.345), played the most significant role in enhancing the contract farming. They were followed by economic–performance outcomes (0.187) and stakeholder satisfaction (0.180). In contrast, external organizational factors (0.146) and developmental challenges and constraints (0.141) had the least impact. At the sub-criteria level, shared goals (0.047), continuous inspection (0.041), and risk aversion (0.039) emerged as the most important components of internal organizational factors. Within external organizational factors, value chain (0.053) and economic factors (0.036) were prioritized. In the economic outcomes dimension, improving company efficiency (0.048) and optimal utilization of regional capabilities (0.0435) carried the greatest importance. Furthermore, continuous monitoring (0.086) and yield enhancement (0.086) were the most influential sub-criteria for stakeholder satisfaction, while lack of proper infrastructure (0.048) and insufficient capital (0.035) were identified as the most critical developmental challenges.
Conclusions
Based on the findings, the sustainability and effectiveness of contract farming rely not on external factors but rather on the development and strengthening of internal elements such as social and managerial capital. Accordingly, it is recommended that policymakers and managers of rural cooperatives focus on empowering internal structures, fostering mutual trust, and establishing transparent relationships among stakeholders. Such a strategy, in addition to enhancing efficiency and productivity, can transform cooperatives into enabling and income-generating institutions. Consequently, emphasizing organizational coordination and shared objectives, rather than relying solely on government support, will lead to sustainable economic development and poverty reduction in rural areas. This approach paves the way for greater productivity and comprehensive stakeholder satisfaction.
Keywords
Analytic Hierarchy Process
Rural Production Cooperative
Contract Farming
Subjects
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