What is Contract Farming, and What Are The Benefits?
Contract farming, when done correctly, is an efficient method of coordinating and promoting agricultural output and commercialization. To be sure, there are agreements in place that benefit those with more financial clout and those with less: corporations and farmers with less clout. However, it's a strategy that may help farmers make more money and sponsors make more money. For both parties, a well-managed contract farming arrangement decreases risk and uncertainty, as opposed to the open market. Contract farming's detractors point out the relationship's imbalance and the sponsors' superior position relative to the producers. If you think at it from the sponsor's point of view, contract farming is a win-win situation for everyone. However, data shows that contract farming is becoming more popular in many nations, since it reduces the risk for all parties involved. Furthermore, a partnership in which the rewards are unequally allocated between sponsors and farmer