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Contract Farming
Definition
Contractual relationship between an international buyer and (associations of) host country farmers (including through intermediaries), which establishes conditions for the farming and marketing of agricultural products.
Advantage
Advantages for farmers
The prime advantage of a contractual agreement for farmers is that the sponsor will normally undertake to purchase all produce grown, within specified quality and quantity parameters. Contracts can also provide farmers with access to a wide range of managerial, technical and extension services that otherwis
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