Contract Farming Resource Centre

An Overview of Contract Farming: Legal Issues and Challenges

Organization UNIDROIT
Year 2012

Contract farming has recently risen to prominence in the development literature because of the potential benefits that may result from sound contractual practices in agricultural production. This paper will first highlight examples to show the range of forms that the legal framework governing contract farming may take (II). Section III will take a look at the underlying contracts themselves and break down the elements of typical agricultural contracts in the realm of contract farming. The section will start with a basic description and then move on to look at specific contract provisions that may help to protect the parties and also at those provisions that may create opportunities for abuse and therefore threaten the long term viability of contract farming ventures. Finally, the paper will discuss roles for governments to play in improving contract farming outcomes (IV).