Question

The British government used the colonies only to improve its own financial condition. It looked upon the colonies only as a source of raw material like tobacco, sugar, wood, rice and fish. It did not take any interest in the welfare of the colonies or improving their administration. (make the summary)​

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

Advantages for sponsors

Contract farming with small farmers is more politically acceptable than, for example, production on estates

Working with small farmers overcomes land constraints

Production is more reliable than open-market purchases and the sponsoring company faces less risk by not being responsible for production

More consistent quality can be obtained than if purchases were made on the open market

Problems faced by sponsors

Contracted farmers may face land constraints due to a lack of security of tenure, thus jeopardizing sustainable long-term operations

Social and cultural constraints may affect farmers' ability to produce to managers' specifications

Poor management and lack of consultation with farmers may lead to farmer discontent

Farmers may sell outside the contract (extra-contractual marketing) thereby reducing processing factory throughput

Farmers may divert inputs supplied on credit to other purposes, thereby reducing yields