Contract farming

Contract farming is a structured agricultural arrangement in which farmers enter into a formal agreement with buyers—such as companies, processors, or exporters—to produce specific crops or livestock under predetermined conditions. This system ensures farmers get assured markets, timely payments, and access to quality inputs like seeds, fertilizers, technical guidance, and modern farming practices. In return, the buyer receives consistent, high-quality produce that meets required standards. Contract farming reduces market risks for farmers, promotes sustainable agriculture, improves productivity, and helps build long-term partnerships between growers and agribusiness companies.