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Market-oriented agricultural production can be a mechanism to increase smallholder farmer welfare, rural market performance, and contribute to overall economic growth. Cash crop production can allow households to increase their income by producing output with higher returns to land and labor and using the income generated from sales to purchase goods for consumption. However, in the face of missing and underperforming markets, African smallholder households are often unable to produce efficiently or obtain staple foods reliably and cheaply. 1, 2, 3 Firms face similar constraints that limit the ability and incentive to invest in smallholder-based production systems. 4 Expanding commercial production therefore requires an understanding of the potential welfare impacts for smallholders and rural economies, as well as the economic and institutional constraints to such expansion.

This literature review summarizes the available literature on the impact of smallholder participation in cash crop and export markets on household welfare and rural markets. We include theoretical frameworks, case studies, empirical evidence, and historical analysis. Over 150 articles were examined and 112 have been included in this literature review. One third of the included resources appeared in peer-reviewed academic journals. Research yielded 42 relevant primary empirical studies, half of which have been peer-reviewed. The review focuses exclusively on evidence from Africa regarding top and emerging export crops.* Tobacco and horticulture were also included due to the volume of research relevant to smallholder welfare gains from the production of …