what are the advantages of contract farming
Answers
Answer:
Answer:Advantages. It reduces the risk of production, price and marketing costs. Contract farming can open up new markets which would otherwise be unavailable to small farmers. It also ensures higher production of better quality, financial support in cash and /or kind and technical guidance to the farmers.
Answer:
Enables small scale farming competitive – small farmers can access technology, credit, marketing channels and information while lowering transaction costs.
Assured market to sell their produce at the doorsteps by reducing marketing and transaction costs.
Minimises the risk of production, price and marketing costs.
Opens new markets that otherwise is unavailable to small farmers.
Assures higher production of better quality, financial support in cash and technical guidance to the farmers.
For agri-processing level, it assures a consistent supply of agricultural produce with quality at the appropriate and lesser cost.