Although there is a lot of evidence for the positive welfare effects of contract farming, it is not clear how to integrate farmers into contracts and how to maintain stable long-term-relationships between farmers and agri-business firms. While Contract Farming is a formal institutional...

In the last decades global food value chains have seen the need for increasing vertical coordination in order to secure quality standards. A prominent way to govern the relationships between farmers and agri-business firms are farming contracts. We study the role of trust, risk and time...