Contract Disputes in Agricultural Outgrower Schemes in Kebbi State: Legal Protections for Smallholder Farmers

Agricultural outgrower schemes, in which smallholder farmers produce crops under contractual arrangements with agribusiness companies, are central to Nigeria's agricultural transformation agenda in the North West. This study examines contract disputes arising within outgrower schemes in Kebbi State, evaluating the legal protections available to smallholder farmers who face unilateral contract variations, refusal to purchase contracted produce, and manipulated pricing by agribusiness operators. Using a mixed-methods research design, the study surveys 150 outgrower farmers and 20 agribusiness managers in Birnin Kebbi, Yauri, and Argungu, supplemented by doctrinal analysis of the Agricultural (Commercial Crops) Decree, the Agribusiness Act, and standard outgrower contract terms. Findings reveal significant power asymmetry between smallholder farmers and agribusiness companies, with farmers rarely engaging legal counsel in contract negotiation and courts being financially inaccessible for dispute resolution. The study also documents how contracted farmers bear disproportionate climate-related agricultural risks without corresponding contract adjustments. Recommendations include the mandatory registration of outgrower contracts with the Ministry of Agriculture, the establishment of an agricultural ombudsman, standardised contract templates that comply with fair dealing principles, and enhanced legal literacy for farming cooperatives in Kebbi State. Keywords: outgrower schemes, smallholder farmers, agricultural contracts, Kebbi State, contract disputes