Contract farming (Agriculture Glossary)

Contract farming : Farming or other agricultural production carried out on the basis of an agreement between the buyer or consumer and the farmer or producer. Contracts typically involve the producer agreeing to supply certain quantities of a crop or other product according to quality standards and delivery requirements specified by the buyer, and the buyer agreeing to buy the product, often at a price that is established in advance; the buyer often also agrees to support the producer in various ways, e.g. by supplying inputs, assisting with land preparation, providing production advice, and helping to transport the finished product.