This paper reviews the experience of contract farming and outgrower schemes for five agricultural tree crops: cocoa, rubber, palm oil, coffee and tea. The primary objective of the paper is to draw lessons from this experience to inform similar schemes with tree crops. Based on a review of the literature, the author sets out to answer two main questions: how does contract farming work and who benefits? The paper examines the different types of contract farming and their origins, the influence of crop characterisitics in determining the effectiveness and suitability of production under contract, and the financial and economic viability of contract farming schemes. Finally, it looks at the effectiveness of contract farming as a tool for rural development and reviews some national policies towards contracting farming schemes based on case studies from Africa and Asia
