Contract farming (CF) is considered a tool to advance agriculture through commercialization in many developing nations. Although a substantial body of literature shows the impacts of CF on farmers' welfare, its effect on resource usage efficiency is ignored. Using cross-sectional data from 754 wheat farmers, this study finds that CF adopters are highly efficient than non-contract farming (NCF). Furthermore, CF adopters benefit appreciably from contracting in terms of better resource use efficiency and minimum market risk. However, the participation of marginal and small-scale farmers is almost negligible in CF. So it suggests that contracting firms should bring these farmers into the ambit of the contract to uplift their well-being.