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Contract Farming

Contract Farming

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Published by jibijohn31

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Published by: jibijohn31 on Jan 29, 2010
Copyright:Attribution Non-commercial

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11/05/2012

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CONTRACTCONTRACTFARMINGFARMING
 
 
CONTRACT FARMINGCONTRACT FARMING
 
Is an agreement between farmers and theIs an agreement between farmers and thecontractor where various inputs in the form of contractor where various inputs in the form of loans ,seeds, fertilizers , insecticides and pesticidesloans ,seeds, fertilizers , insecticides and pesticidesare given to the farmer with an undertaking that theyare given to the farmer with an undertaking that theywould directly sell their entire produce to thewould directly sell their entire produce to thecontractorcontractor
Contract farming helps farmers get inputs in timeContract farming helps farmers get inputs in timeand firms involved in contracts earn profit fromand firms involved in contracts earn profit fromagricultural produce of assured qualityagricultural produce of assured quality
Contract farming has attained a significant place inContract farming has attained a significant place intoday's agriculture and has played a major role intoday's agriculture and has played a major role incommercialization of agriculture in global contextcommercialization of agriculture in global context
Contract farming is one of the best mechanismContract farming is one of the best mechanismsuggested to take advantages of the marketsuggested to take advantages of the marketopportunities in a globalize economy and to cope upopportunities in a globalize economy and to cope upwith the resultant price volatilitywith the resultant price volatility
Contract farming can link the Indian farmer to theContract farming can link the Indian farmer to theinternational market by helping in the production ointernational market by helping in the production of 
 
 
AdvantagesAdvantages
 
FarmersFarmers
easy access to additional sources of capital / crediteasy access to additional sources of capital / credit
better access to quality production inputs (seeds, fertilizers..)better access to quality production inputs (seeds, fertilizers..)
free technological inputs and servicesfree technological inputs and services
transportation and marketing facilitiestransportation and marketing facilities
Fixed/ assured price for their produceFixed/ assured price for their produce
lower riskslower risks
Contract firmsContract firms
Direct access to production sourcesDirect access to production sources
Assured product availabilityAssured product availability
Assured product qualityAssured product quality
Better prices ( no middlemen )Better prices ( no middlemen )

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