Contract farming is an alternative income scheme for rural farm households in Lao PDR. Sugarcane contract farming offers new hope instead of conventional income from rice and brings higher returns for households. In practice, the raising of income from sugarcane contract farming in rural farm households has been faced with a number of challenges. (THE IMPACTS OF CONTRACT FARMING ON RURAL FARM HOUSEHOLDS, LAO PDR, 20132). In practice, the raising of income from sugarcane contract farming in rural farm households has been faced with a number of challenges. Sugarcane contract farming is new to rural farm households requiring farm management with regard to production, profit, skills and knowledge.