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Contract Farming

Welcome to FAO’s Contract Farming Resource Centre (CFRC)!

Contract Farming is an agreement between producers and buyers made in advance on terms and conditions for the production and marketing of agrifood products. It is gaining traction in developing countries, driven by globalization and transformation of agrifood systems. Increasingly, it is recognized for its potential to foster responsible agricultural investment and sustainability-aligned impact.

CFRC, managed by the Food and Agriculture Organization of the United Nations (FAO), serves as a one-stop platform offering free, accessible resources on contract farming, including news, learning materials, publications and tools. It is designed to support a comprehensive understanding of contract farming, especially its legal and operational dimensions, for anyone interested in this evolving field.

Contract Farming
23/08/2024

Lan Li, Economist in FAO’s Agrifood Economics and Policy Division, explains the concept of contract farming and provides an overview of FAO’s initiatives in this area.

Did you know that contract farming has the potential to

  • Link smallholder farmers with buyers and markets,
  • Facilitate producers access to technology, training, technical support, inputs, finance or other resources,
  • Help manage market, production and environmental risks,
  • Boost productivity, profitability and livelihoods for smallholders,
  • Enable agribusinesses including micro, small and medium enterprises (MSEMs) to secure consistent, quality supplies,
  • Support value chain upgrading, commercialization and competitiveness,  
  • Foster inclusive growth and sustainable development?
Key literature for practitioners
UNIDROIT/FAO/IFAD Legal guide on contract farming (English, French, Spanish)
2015

Mindful of the importance of enhancing knowledge and awareness of the legal regime applicable to contract farming operations, the International Institute...

Legal aspects of contract farming agreements: Synthesis of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming
2017

This document is primarily a synthesis of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming (hereafter referred to as the “Guide”) (UNIDROIT,FAO...

Guiding principles for responsible contract farming operations (English, Arabic, Spanish)
2012

Contract farming can be defined as an agricultural production system carried out according to an agreement between a buyer and farmers, which establishes...

Contract farming and the law: What do regulators need to know?
2017

This brief aims to help regulators and policymakers to achieve a correct understanding of the legal aspects of contract farming (CF). It is based on...

Contract farming and the law: What do farmers need to know?
2017

This brief aims to help farmer leaders, farmer organizations and facilitators working with smallholders to achieve a correct understanding of the legal...

Model agreement for responsible contract farming: with commentary
2018

The Model Agreement for Responsible Contract Farming is a simple and practical legal tool to support the implementation of global principles and guidelines...

A contract farming model agreement in Lesotho
2024

As an innovative business model, contract farming has the potential to contribute to sustainable development of agribusinesses and agrifood value chains,...

Legal fundamentals for the design of contract farming agreements.
2017

One of the main challenges to successful contract farming in a number of developing countries is the absence of strong legal systems that guarantee...

Enabling regulatory frameworks for contract farming
2018

This legislative study provides guidance to the domestic regulators on appraising and potentially reforming domestic regulatory frameworks for responsible...

Better Coordination through contract farming Rural21
Better coordination through contract farming
2019

With globalisation and transformations of our agrifood systems, contract farming (CF) agreements between producers and buyers have gained prominence....

Contract farming: Partnerships for growth (English, French, Spanish)
2001

Contract farming can be defined as an agreement between farmers and buyers for the production and supply of agricultural products under forward agreements,...

Contract farming for inclusive market access
2013

Recent transformations in agrifood systems have created new technical requirements and compliance costs that make it increasingly difficult for resource-poor...

An analytical toolkit for support to contract farming
2014

Over the past century or so, a wide assortment of pre-harvest agreements, joint ventures, deals and pledges that can be termed “contract farming” have...

Contract farming handbook volume II – selected tools and case examples: A practical guide for linking small-scale producers and buyers through business model innovation
2015

The second volume of this handbook focuses on practical aspects. Especially because of the high demand for training on contract farming in partner countries...

Contract farming handbook volume I – manual: A practical guide for linking small-scale producers and buyers through business model innovation
2013

Recognising the recent rise in the prominence of contract farming in practical approaches and debates on inclusive business, GIZ’s sector project on...

Innovative contract farming arrangements in Asia and the Pacific
2022

Although informal transactions are still the norm in Asia and the Pacific, contractual agreements are on the rise, especially for high-value agricultural...

Learning center Learning resources
Important events in FAO and on Contract Farming
Count down to FAO80

FAO’s 80th anniversary is sparking a wave of celebration across the globe, with each region bringing its own stories, achievements, and spirit to this historic milestone.

World Food Forum 10-17 October 2025

The World Food Forum (WFF) flagship event, organized by the Food and Agriculture Organization of the United Nations (FAO), is a global platform that drives action to transform agrifood systems through the power of youth, science and innovation, and investment.

Hand-in-Hand Investment Forum 2025

FAO's annual agrifood investment forum provides a platform for governments to present investment plans – developed through the HIH Initiative. 

53rd Plenary Session of CFS

From 20-24 October 2025, the Plenary will begin with opening statements by UN high-level representatives followed by the presentation of the Report “The State of Food Security and Nutrition in the World (SOFI) 2025”, a panel discussion comprising regional perspectives on this year's SOFI theme.