This paper has been attempted to compare the effect of market sale and contract strategies on yield, using a 356 survey data from tomato farmers in Khorasan-Razavi province, Iran on 2007 and applying the game theory approach. The results showed that the effect of no-contract strategy with tomato processing factories is more than contracted strategy on tomato yield in farm level. With respect to this finding, producing the support-extension services as distributing the high-yield seeds, organizing the production cooperatives from small farms, and drawing up the village-collectively contract framework has been recommended to planners and policymakers.

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