what is a contract farming is it useful to farmers how
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Answer:
Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer agrees to provide agreed quantities of a specific agricultural product. These should meet the quality standards of the purchaser and be supplied at the time determined by the purchaser. In turn, the buyer commits to purchase the product and, in some cases, to support production through, for example, the supply of farm inputs, land preparation and the provision of technical advice.
Makes small scale farming competitive - small farmers can access technology, credit, marketing channels and information while lowering transaction costs
Assured market for their produce at their doorsteps, reducing marketing and transaction costs
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.
In case of agri-processing level, it ensures consistent supply of agricultural produce with quality, at right time and lesser cost.
Explanation:
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