Permalink : http://hdl.handle.net/2115/39862

The purpose of this paper is to examine characteristics of contract farming and its profitability based on the field survey conducted in the paddy region of Central Taiwan in 2007. The feature of mechanization of rice farming in Taiwan is characterized by contract farming. The study case is a typical example of large scale operation of the "long-distance" type contract work. Features of contract farming are as follows. The first is introduction of imported, large and high-performance machines. The second is the operation of "long-distance" type, covering a travel distance of over 100km. The third is the different charge settings for the neighboring country and the local town. The fourth is the use of auxiliary labor force in the contract work. Based on the actual state of contract farming in 2007, as well as the work journal and record of farm expenditures of the study case, we will examine the profitability of contract farming. The results of estimation of profitability confirms that the contract work secures profit that enables continued production, even taking into account the depreciation cost.