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This paper focuses on the different variables that could explain farmers’ choices between on farm and off farm sales and the counterfactual gains of each one. The endogenous switching regression model is used to analyze data collected in the South Kivu Province (DR Congo). The results show that the likelihood of selling on the market depends positively on the plot size, the location of the market, market frequency... and negatively on the distance to farm. The average gain of a randomly selected household among the sample of farmers selling on the farm is lower than selling on the market and inversely.

Selling on Farm or on the Market: What Kind of Arbitrage for Smallholders’ Farmers in South-Kivu, Democratic Republic of Congo?