Peasants, grapes and corporations: The growth of contract farming in a Chilean community

Abstract

This article examines the social implications of contract farming promoted in smallholding areas. It is argued that rather than resulting in overall proletarianisation of the local peasantry, contract farming may accelerate its differentiation and disintegration by converting rich peasants into peasant capitalists. The argument is supported by a historical analysis of socio‐economic and organisational processes in a Chilean smallholding community which experienced two consecutive waves of agribusiness expansion: a tobacco boom in the 1950s and a fruit export expansion in the 1970s and 1980s.