Contract farming is emerging as an important institutional innovation in the high value food chain in developing countries including Bangladesh, and its socioeconomic implications are topic of interest in policy debates. This study is an empirical assessment to explore the determinants of participation and the impact of contract farming on welfare and adoption of food safety practice in Bangladesh. Analysis indicates that contract farmers are more likely to have better access to agricultural extension services, attended proportionately more community meetings, households members are member of organizations, access more credit, are located farther from output market, and have larger herd sizes.