This research is aimed to study the impacts on rural farm households of contract
farming in Savannakhet, Lao PDR. The study has been conducted by the qualitative
approach, by in-depth interview as well as employing observation techniques. The targets of
this research were 10 key informants, such as sugarcane contract farming organizations
which include buyers, officers, production groups and the 20 farm households who conduct
sugarcane contract farming. Content analysis was employed for the data analysis. The results
found that there were both positive and negative impacts on farm households. The positive
impacts: both income and farm management skills were improved and household networks
were established. Negative impacts: debts, exposure to chemical, pesticides and insecticides,
low social relations were found. These are the risks facing the households participating in
contract farming in Lao PDR.