Contract Farming Resource Centre

Legal aspects of contract farming agreements - Synthesis of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming

Year 2017

In 2015, mindful of the importance of enhancing knowledge and awareness of the legal regime applicable to contract farming operations, the International Institute for the Unification of Private Law (UNIDROIT), the Food and Agriculture Organization of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD) released the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming. This Guide is a comprehensive reference document that considers contract farming from the perspective of private law with the aim to promote a better understanding of the legal implications of contract terms and practices. The synthesis of this Guide has been developed to further disseminate the important content of the Legal Guide to a broader audience of non-technical actors interested in contract farming including farmer representatives, extension agents, cooperatives, farmer associations, small and medium agrifood businesses and government regulators. It synthesizes the most important issues covered in the Guide while placing greater focus on legal issues of relevance to developing countries. It also includes observations and lessons learned from FAO's previous experience with contract farming in the field to illustrate the findings from the Guide. As such, it provides a useful summary of the many legal issues related to contract farming and offers guidance concerning the design and implementation of sound contracts, thereby contributing to building a conducive environment for contract farming.