Assessing the Multidimensional Impacts of Farmer-Based Organizations on Smallholder Welfare in Pakistan

Abstract

Farmer-based organizations (FBOs) play a crucial role in knowledge exchange, capacity building, resource access, and advocacy, thereby contributing to the well-being of smallholder farmers. Existing evidence on the welfare outcomes of FBO participation has largely focused on conventional measures such as income, crop yield, and resource management. However, farmer well-being is multidimensional, encompassing not only economic outcomes but also resilience and social inclusion. This study addresses this gap by incorporating broader welfare indicators—food security, credit access, and livelihood diversification—to capture the full benefits of FBO participation. The study is based on primary survey data collected from 500 smallholder farming households in Punjab, Pakistan, collected via systematic random sampling to test the posited aims. The research employs propensity score matching (PSM) and inverse probability weighted regression adjustment (IPWRA) to estimate the welfare effects of FBO participation. Logit estimates from the PSM model highlight the importance of extension access, peer influence, and tenure security in shaping farmers' decisions to join FBOs. Results from both PSM and IPWRA models consistently show that FBO membership yields significant welfare gains. Specifically, participation improves the Food Consumption Score, promotes livelihood diversification, and enhances access to credit. The findings demonstrate the potential of structured collective action to foster multidimensional rural development. Strengthening and supporting FBOs should therefore be a priority for governments and development agencies as a means to enhance food security, improve financial inclusion, and diversify rural livelihoods, ultimately building resilience and reducing vulnerability among farming households.