Question

disadvantages of contract farming​

Answer 1

Answer:

Advantages for farmers

Inputs and production services are often supplied by the sponsor

This is usually done on credit through advances from the sponsor

Contract farming often introduces new technology and also enables farmers to learn new skills

Farmers' price risk is often reduced as many contracts specify prices in advance

Contract farming can open up new markets which would otherwise be unavailable to small farmers

Problems faced by farmers

Particularly when growing new crops, farmers face the risks of both market failure and production problems

Inefficient management or marketing problems can mean that quotas are manipulated so that not all contracted production is purchased

Sponsoring companies may be unreliable or exploit a monopoly position

The staff of sponsoring organizations may be corrupt, particularly in the allocation of quotas

Farmers may become indebted because of production problems and excessive advances

Explanation:

Thanks

Answer 2

Answer:

The main disadvantages faced by contract farming developers are:

land availability constraints;

social and cultural constraints;

farmer discontent;

extra-contractual marketing; and.

input diversion.