This paper maps the extent and causes of farmer exit from contract farming arrangements in southern India using survey data for five schemes: cotton, gherkins, papaya, marigold, and broiler chickens. The paper finds that farmer attrition is quite widespread and that poorer farmers from marginalized social groups are more likely to exit these arrangements. While this is an important policy concern, the study also distinguishes between voluntary exit, where the farmer opts out, versus involuntary exit, where the contracting firm drops the farmer as a supplier because of constraints in delivering quality produce, or the firm's interaction with the farmer forces the farmer out. The paper also highlights the episodic nature of farmer participation, wherein farmers leverage opportunities to contract occasionally as part of a dynamic portfolio of alternatives. The paper emphasizes that while involuntary exclusion is of serious concern, voluntary exit and episodic participation are perhaps less important issues from a policy perspective.

Ashraf, N., Gine, X. and Karlan, D.S. (2009) ‘Finding missing markets (and a disturbing epilogue): evidence from an export crop adoption and marketing intervention in Kenya’, American Journal of Agricultural Economics 91 (4): 973-90 <http://dx.doi.org/10.1111/j.1467-8276.2009.01319.x≯.

Bachke, M.E. (2010) Do Farmers’ Organizations Enhance the Welfare of Small-scale Farmers? Working Paper, Ås, Norway: Norwegian University of Life Sciences.

Barrett, C.B., Bachke, M.E., Bellemare, M.F., Michelson, H.C., Narayanan, S. and Walker, T.F. (2012) ‘Smallholder participation in contract farming: comparative evidence from five countries,’ World Development 40 (4): 715-30 <http://dx.doi.org/10.1016/j.worlddev.2011.09.006≯.

da Silva, C. (2005) The Growing Role of Contract Farming in Agri-food Systems Development: Drivers, Theory and Practice, Rome: Agricultural Management, Marketing and Finance Service, FAO.

Dolan, C. and Humphrey, J. (2000) ‘Governance and trade in fresh vegetables: the impact of UK supermarkets on the African horticulture industry’, Journal of Development Studies 37 (2): 147-76 <http://dx.doi.org/10.1080/713600072≯.

Dolan, C., Humphrey, J. and Harris-Pascal, C. (1999) Horticulture Commodity Chains: The Impact of the UK Market on the African Fresh Vegetable Industry, Brighton, UK: Institute of Development Studies.

Dries, L. and Reardon, T. (2005) Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain. Report Series No. 6, London: FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme <www.fao.org/docrep/008/af100e/af100e00.HTM≯. www.fao.org/docrep/008/af100e/af100e00.HTM

Eaton, C. and Shepherd, A. (2001) Contract Farming: Partnerships for Growth, Rome: Food and Agriculture Organization.

Farina, E., Gutman, G., Lavarello, P., Nunes, R. and Reardon, T. (2005) ‘Private and public milk standards in Argentina and Brazil’, Food Policy 30: 302-15 <http://dx.doi.org/10.1016/j.foodpol.2005.05.008≯.

Fold, N. and Gough, K.V. (2008) ‘From smallholders to transnationals: the impact of changing consumer preferences in the EU on Ghana's pineapple sector’, Geoforum 39: 1687-97 <http://dx.doi.org/10.1016/j.geoforum.2008.06.004≯.

Glover, D. and Ghee Lim, T. (1992) Contract Farming in Southeast Asia: Three Country Studies, Kuala Lumpur: Institute for Advanced Studies, University of Malaya.

Glover, D. and Kusterer, K. (1990) Small Farmers, Big Business: Contract Farming and Rural Development, International Political Economy series, New York: St Martin's Press.

Harou, A. and Walker, T. (2010) The Pineapple Market and the Role of Cooperatives, Working Paper, Ithaca, NY: Cornell University.

Herath, D. and Weersink, A. (2009) ‘From plantations to smallholder production: the role of policy in the reorganization of the Sri Lankan tea sector’, World Development 37: 1759-72 <http://dx.doi.org/10.1016/j.worlddev.2008.08.028≯.

Hu, D., Reardon, T., Rozelle, S., Timmer, P. and Wang, H. (2004) ‘The emergence of supermarkets with Chinese characteristics: challenges and opportunities for China's agricultural development’, Development Policy Review 22: 557-86 <http://dx.doi.org/10.1111/j.1467-7679.2004.00265.x≯.

Mannon, S.E. (2005) ‘Risk takers, risk makers: small farmers and non-traditional agro-exports in Kenya and Costa Rica’, Human Organization 64: 16-27.

Minot, N. (1986) Contract Farming and its Effect on Small Farmers in Less Developed Countries, International Development Working Papers, East Lansing, MI: Michigan State University.

Minot, N. (2008) ‘Contract farming in developing countries: patterns, impact, and policy implications’, in P. Pinstrup-Andersen and F. Cheng (eds.), Case Studies in Food Policy for Developing Countries, volume 6-3, Ithaca, NY: Cornell University Press.

Minot, N. and Ngigi, M. (2004) Are Horticultural Exports a Replicable Success Story? Discussion Paper 73, Washington, DC: Markets, Trade and Institutions Division, International Food Policy Research Institute.

Narayanan, S. (2012a) Safe Gambles? Farmer Perceptions of Transactional Certainty and Risk- Return Tradeoffs in Contract Farming Schemes in Southern India, Working Paper WP-2012-021, Mumbai: Indira Gandhi Institute of Development Research (IGIDR).

Narayanan, S. (2012b) ‘Inflections in agricultural evolution: contemporary commodity complexes and transactional forms in interior Tamil Nadu’, Economic and Political Weekly, 21 December 2012.

Revathy, L.N. (2010) ‘Mills losing interest in cotton contract farming’, Business Line [online] <www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm≯ [accessed 9 July 2010]. www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm

Runsten, E. and Key, N. (1996) ‘Contract farming in developing countries’, Rural Development 2: 22-34.

Swinnen, J.F.M. (2007) Global Supply Chains, Standards and the Poor: How the Globalization of Food Systems and Standards Affects Rural Development and Poverty, Wallingford, UK and Cambridge, MA: CABI.

Swinnen, J. and Maertens, M. (2008) Globalization, Privatization, and Vertical Coordination in Food Value Chains, Agriculture and Development, Berlin Workshop Series, Washington, DC: World Bank, p. 49.

Ashraf, N., Gine, X. and Karlan, D.S. (2009) ‘Finding missing markets (and a disturbing epilogue): evidence from an export crop adoption and marketing intervention in Kenya’, American Journal of Agricultural Economics 91 (4): 973-90 <http://dx.doi.org/10.1111/j.1467-8276.2009.01319.x≯.

Bachke, M.E. (2010) Do Farmers’ Organizations Enhance the Welfare of Small-scale Farmers? Working Paper, Ås, Norway: Norwegian University of Life Sciences.

Barrett, C.B., Bachke, M.E., Bellemare, M.F., Michelson, H.C., Narayanan, S. and Walker, T.F. (2012) ‘Smallholder participation in contract farming: comparative evidence from five countries,’ World Development 40 (4): 715-30 <http://dx.doi.org/10.1016/j.worlddev.2011.09.006≯.

da Silva, C. (2005) The Growing Role of Contract Farming in Agri-food Systems Development: Drivers, Theory and Practice, Rome: Agricultural Management, Marketing and Finance Service, FAO.

Dolan, C. and Humphrey, J. (2000) ‘Governance and trade in fresh vegetables: the impact of UK supermarkets on the African horticulture industry’, Journal of Development Studies 37 (2): 147-76 <http://dx.doi.org/10.1080/713600072≯.

Dolan, C., Humphrey, J. and Harris-Pascal, C. (1999) Horticulture Commodity Chains: The Impact of the UK Market on the African Fresh Vegetable Industry, Brighton, UK: Institute of Development Studies.

Dries, L. and Reardon, T. (2005) Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain. Report Series No. 6, London: FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme <www.fao.org/docrep/008/af100e/af100e00.HTM≯. www.fao.org/docrep/008/af100e/af100e00.HTM

Eaton, C. and Shepherd, A. (2001) Contract Farming: Partnerships for Growth, Rome: Food and Agriculture Organization.

Farina, E., Gutman, G., Lavarello, P., Nunes, R. and Reardon, T. (2005) ‘Private and public milk standards in Argentina and Brazil’, Food Policy 30: 302-15 <http://dx.doi.org/10.1016/j.foodpol.2005.05.008≯.

Fold, N. and Gough, K.V. (2008) ‘From smallholders to transnationals: the impact of changing consumer preferences in the EU on Ghana's pineapple sector’, Geoforum 39: 1687-97 <http://dx.doi.org/10.1016/j.geoforum.2008.06.004≯.

Glover, D. and Ghee Lim, T. (1992) Contract Farming in Southeast Asia: Three Country Studies, Kuala Lumpur: Institute for Advanced Studies, University of Malaya.

Glover, D. and Kusterer, K. (1990) Small Farmers, Big Business: Contract Farming and Rural Development, International Political Economy series, New York: St Martin's Press.

Harou, A. and Walker, T. (2010) The Pineapple Market and the Role of Cooperatives, Working Paper, Ithaca, NY: Cornell University.

Herath, D. and Weersink, A. (2009) ‘From plantations to smallholder production: the role of policy in the reorganization of the Sri Lankan tea sector’, World Development 37: 1759-72 <http://dx.doi.org/10.1016/j.worlddev.2008.08.028≯.

Hu, D., Reardon, T., Rozelle, S., Timmer, P. and Wang, H. (2004) ‘The emergence of supermarkets with Chinese characteristics: challenges and opportunities for China's agricultural development’, Development Policy Review 22: 557-86 <http://dx.doi.org/10.1111/j.1467-7679.2004.00265.x≯.

Mannon, S.E. (2005) ‘Risk takers, risk makers: small farmers and non-traditional agro-exports in Kenya and Costa Rica’, Human Organization 64: 16-27.

Minot, N. (1986) Contract Farming and its Effect on Small Farmers in Less Developed Countries, International Development Working Papers, East Lansing, MI: Michigan State University.

Minot, N. (2008) ‘Contract farming in developing countries: patterns, impact, and policy implications’, in P. Pinstrup-Andersen and F. Cheng (eds.), Case Studies in Food Policy for Developing Countries, volume 6-3, Ithaca, NY: Cornell University Press.

Minot, N. and Ngigi, M. (2004) Are Horticultural Exports a Replicable Success Story? Discussion Paper 73, Washington, DC: Markets, Trade and Institutions Division, International Food Policy Research Institute.

Narayanan, S. (2012a) Safe Gambles? Farmer Perceptions of Transactional Certainty and Risk- Return Tradeoffs in Contract Farming Schemes in Southern India, Working Paper WP-2012-021, Mumbai: Indira Gandhi Institute of Development Research (IGIDR).

Narayanan, S. (2012b) ‘Inflections in agricultural evolution: contemporary commodity complexes and transactional forms in interior Tamil Nadu’, Economic and Political Weekly, 21 December 2012.

Revathy, L.N. (2010) ‘Mills losing interest in cotton contract farming’, Business Line [online] <www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm≯ [accessed 9 July 2010]. www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm

Runsten, E. and Key, N. (1996) ‘Contract farming in developing countries’, Rural Development 2: 22-34.

Swinnen, J.F.M. (2007) Global Supply Chains, Standards and the Poor: How the Globalization of Food Systems and Standards Affects Rural Development and Poverty, Wallingford, UK and Cambridge, MA: CABI.

Swinnen, J. and Maertens, M. (2008) Globalization, Privatization, and Vertical Coordination in Food Value Chains, Agriculture and Development, Berlin Workshop Series, Washington, DC: World Bank, p. 49.

Ashraf, N., Gine, X. and Karlan, D.S. (2009) ‘Finding missing markets (and a disturbing epilogue): evidence from an export crop adoption and marketing intervention in Kenya’, American Journal of Agricultural Economics 91 (4): 973-90 <http://dx.doi.org/10.1111/j.1467-8276.2009.01319.x≯.

Bachke, M.E. (2010) Do Farmers’ Organizations Enhance the Welfare of Small-scale Farmers? Working Paper, Ås, Norway: Norwegian University of Life Sciences.

Barrett, C.B., Bachke, M.E., Bellemare, M.F., Michelson, H.C., Narayanan, S. and Walker, T.F. (2012) ‘Smallholder participation in contract farming: comparative evidence from five countries,’ World Development 40 (4): 715-30 <http://dx.doi.org/10.1016/j.worlddev.2011.09.006≯.

da Silva, C. (2005) The Growing Role of Contract Farming in Agri-food Systems Development: Drivers, Theory and Practice, Rome: Agricultural Management, Marketing and Finance Service, FAO.

Dolan, C. and Humphrey, J. (2000) ‘Governance and trade in fresh vegetables: the impact of UK supermarkets on the African horticulture industry’, Journal of Development Studies 37 (2): 147-76 <http://dx.doi.org/10.1080/713600072≯.

Dolan, C., Humphrey, J. and Harris-Pascal, C. (1999) Horticulture Commodity Chains: The Impact of the UK Market on the African Fresh Vegetable Industry, Brighton, UK: Institute of Development Studies.

Dries, L. and Reardon, T. (2005) Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain. Report Series No. 6, London: FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme <www.fao.org/docrep/008/af100e/af100e00.HTM≯. www.fao.org/docrep/008/af100e/af100e00.HTM

Eaton, C. and Shepherd, A. (2001) Contract Farming: Partnerships for Growth, Rome: Food and Agriculture Organization.

Farina, E., Gutman, G., Lavarello, P., Nunes, R. and Reardon, T. (2005) ‘Private and public milk standards in Argentina and Brazil’, Food Policy 30: 302-15 <http://dx.doi.org/10.1016/j.foodpol.2005.05.008≯.

Fold, N. and Gough, K.V. (2008) ‘From smallholders to transnationals: the impact of changing consumer preferences in the EU on Ghana's pineapple sector’, Geoforum 39: 1687-97 <http://dx.doi.org/10.1016/j.geoforum.2008.06.004≯.

Glover, D. and Ghee Lim, T. (1992) Contract Farming in Southeast Asia: Three Country Studies, Kuala Lumpur: Institute for Advanced Studies, University of Malaya.

Glover, D. and Kusterer, K. (1990) Small Farmers, Big Business: Contract Farming and Rural Development, International Political Economy series, New York: St Martin's Press.

Harou, A. and Walker, T. (2010) The Pineapple Market and the Role of Cooperatives, Working Paper, Ithaca, NY: Cornell University.

Herath, D. and Weersink, A. (2009) ‘From plantations to smallholder production: the role of policy in the reorganization of the Sri Lankan tea sector’, World Development 37: 1759-72 <http://dx.doi.org/10.1016/j.worlddev.2008.08.028≯.

Hu, D., Reardon, T., Rozelle, S., Timmer, P. and Wang, H. (2004) ‘The emergence of supermarkets with Chinese characteristics: challenges and opportunities for China's agricultural development’, Development Policy Review 22: 557-86 <http://dx.doi.org/10.1111/j.1467-7679.2004.00265.x≯.

Mannon, S.E. (2005) ‘Risk takers, risk makers: small farmers and non-traditional agro-exports in Kenya and Costa Rica’, Human Organization 64: 16-27.

Minot, N. (1986) Contract Farming and its Effect on Small Farmers in Less Developed Countries, International Development Working Papers, East Lansing, MI: Michigan State University.

Minot, N. (2008) ‘Contract farming in developing countries: patterns, impact, and policy implications’, in P. Pinstrup-Andersen and F. Cheng (eds.), Case Studies in Food Policy for Developing Countries, volume 6-3, Ithaca, NY: Cornell University Press.

Minot, N. and Ngigi, M. (2004) Are Horticultural Exports a Replicable Success Story? Discussion Paper 73, Washington, DC: Markets, Trade and Institutions Division, International Food Policy Research Institute.

Narayanan, S. (2012a) Safe Gambles? Farmer Perceptions of Transactional Certainty and Risk- Return Tradeoffs in Contract Farming Schemes in Southern India, Working Paper WP-2012-021, Mumbai: Indira Gandhi Institute of Development Research (IGIDR).

Narayanan, S. (2012b) ‘Inflections in agricultural evolution: contemporary commodity complexes and transactional forms in interior Tamil Nadu’, Economic and Political Weekly, 21 December 2012.

Revathy, L.N. (2010) ‘Mills losing interest in cotton contract farming’, Business Line [online] <www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm≯ [accessed 9 July 2010]. www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm

Runsten, E. and Key, N. (1996) ‘Contract farming in developing countries’, Rural Development 2: 22-34.

Swinnen, J.F.M. (2007) Global Supply Chains, Standards and the Poor: How the Globalization of Food Systems and Standards Affects Rural Development and Poverty, Wallingford, UK and Cambridge, MA: CABI.

Swinnen, J. and Maertens, M. (2008) Globalization, Privatization, and Vertical Coordination in Food Value Chains, Agriculture and Development, Berlin Workshop Series, Washington, DC: World Bank, p. 49.

Ashraf, N., Gine, X. and Karlan, D.S. (2009) ‘Finding missing markets (and a disturbing epilogue): evidence from an export crop adoption and marketing intervention in Kenya’, American Journal of Agricultural Economics 91 (4): 973-90 <http://dx.doi.org/10.1111/j.1467-8276.2009.01319.x≯.

Bachke, M.E. (2010) Do Farmers’ Organizations Enhance the Welfare of Small-scale Farmers? Working Paper, Ås, Norway: Norwegian University of Life Sciences.

Barrett, C.B., Bachke, M.E., Bellemare, M.F., Michelson, H.C., Narayanan, S. and Walker, T.F. (2012) ‘Smallholder participation in contract farming: comparative evidence from five countries,’ World Development 40 (4): 715-30 <http://dx.doi.org/10.1016/j.worlddev.2011.09.006≯.

da Silva, C. (2005) The Growing Role of Contract Farming in Agri-food Systems Development: Drivers, Theory and Practice, Rome: Agricultural Management, Marketing and Finance Service, FAO.

Dolan, C. and Humphrey, J. (2000) ‘Governance and trade in fresh vegetables: the impact of UK supermarkets on the African horticulture industry’, Journal of Development Studies 37 (2): 147-76 <http://dx.doi.org/10.1080/713600072≯.

Dolan, C., Humphrey, J. and Harris-Pascal, C. (1999) Horticulture Commodity Chains: The Impact of the UK Market on the African Fresh Vegetable Industry, Brighton, UK: Institute of Development Studies.

Dries, L. and Reardon, T. (2005) Central and Eastern Europe: Impact of Food Retail Investments on the Food Chain. Report Series No. 6, London: FAO Investment Centre/European Bank for Reconstruction and Development Cooperation Programme <www.fao.org/docrep/008/af100e/af100e00.HTM≯. www.fao.org/docrep/008/af100e/af100e00.HTM

Eaton, C. and Shepherd, A. (2001) Contract Farming: Partnerships for Growth, Rome: Food and Agriculture Organization.

Farina, E., Gutman, G., Lavarello, P., Nunes, R. and Reardon, T. (2005) ‘Private and public milk standards in Argentina and Brazil’, Food Policy 30: 302-15 <http://dx.doi.org/10.1016/j.foodpol.2005.05.008≯.

Fold, N. and Gough, K.V. (2008) ‘From smallholders to transnationals: the impact of changing consumer preferences in the EU on Ghana's pineapple sector’, Geoforum 39: 1687-97 <http://dx.doi.org/10.1016/j.geoforum.2008.06.004≯.

Glover, D. and Ghee Lim, T. (1992) Contract Farming in Southeast Asia: Three Country Studies, Kuala Lumpur: Institute for Advanced Studies, University of Malaya.

Glover, D. and Kusterer, K. (1990) Small Farmers, Big Business: Contract Farming and Rural Development, International Political Economy series, New York: St Martin's Press.

Harou, A. and Walker, T. (2010) The Pineapple Market and the Role of Cooperatives, Working Paper, Ithaca, NY: Cornell University.

Herath, D. and Weersink, A. (2009) ‘From plantations to smallholder production: the role of policy in the reorganization of the Sri Lankan tea sector’, World Development 37: 1759-72 <http://dx.doi.org/10.1016/j.worlddev.2008.08.028≯.

Hu, D., Reardon, T., Rozelle, S., Timmer, P. and Wang, H. (2004) ‘The emergence of supermarkets with Chinese characteristics: challenges and opportunities for China's agricultural development’, Development Policy Review 22: 557-86 <http://dx.doi.org/10.1111/j.1467-7679.2004.00265.x≯.

Mannon, S.E. (2005) ‘Risk takers, risk makers: small farmers and non-traditional agro-exports in Kenya and Costa Rica’, Human Organization 64: 16-27.

Minot, N. (1986) Contract Farming and its Effect on Small Farmers in Less Developed Countries, International Development Working Papers, East Lansing, MI: Michigan State University.

Minot, N. (2008) ‘Contract farming in developing countries: patterns, impact, and policy implications’, in P. Pinstrup-Andersen and F. Cheng (eds.), Case Studies in Food Policy for Developing Countries, volume 6-3, Ithaca, NY: Cornell University Press.

Minot, N. and Ngigi, M. (2004) Are Horticultural Exports a Replicable Success Story? Discussion Paper 73, Washington, DC: Markets, Trade and Institutions Division, International Food Policy Research Institute.

Narayanan, S. (2012a) Safe Gambles? Farmer Perceptions of Transactional Certainty and Risk- Return Tradeoffs in Contract Farming Schemes in Southern India, Working Paper WP-2012-021, Mumbai: Indira Gandhi Institute of Development Research (IGIDR).

Narayanan, S. (2012b) ‘Inflections in agricultural evolution: contemporary commodity complexes and transactional forms in interior Tamil Nadu’, Economic and Political Weekly, 21 December 2012.

Revathy, L.N. (2010) ‘Mills losing interest in cotton contract farming’, Business Line [online] <www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm≯ [accessed 9 July 2010]. www.thehindubusinessline.com/2010/07/09/stories/2010070954411800.htm

Runsten, E. and Key, N. (1996) ‘Contract farming in developing countries’, Rural Development 2: 22-34.

Swinnen, J.F.M. (2007) Global Supply Chains, Standards and the Poor: How the Globalization of Food Systems and Standards Affects Rural Development and Poverty, Wallingford, UK and Cambridge, MA: CABI.

Swinnen, J. and Maertens, M. (2008) Globalization, Privatization, and Vertical Coordination in Food Value Chains, Agriculture and Development, Berlin Workshop Series, Washington, DC: World Bank, p. 49.