Contract Farming Resource Centre

Frequently asked questions (FAQs) about contract farming updated

18.06.2023

We have curated a list of ten frequently asked questions (FAQs) in the Background section of our CFRC, where you can also find about what contract farming (CF) is, FAO’s work on CF and how to navigate CFRC.

You will find succinct explanations regarding potential advantages and disadvantages of CF for both producers and buyers in two FAQs. Please also feel free to explore this topic in more detail in the module 1 of the CF course at CFRC’s Learning and Training Center.

Two questions address inclusivity and suitability of CF, specifically smallholder farmers’ participation and suitable commodities for CF schemes. Additional information on the preparation for CF is available in module 2 of the CF course.

In the realm of contract development, you can find concise answers to three important questions regard the importance of documenting contracts in writing, essential clauses in a contractual agreement, and best practices in negotiating contract terms. You can find more detailed discussion on planning and setting up CF operations in module 2 and on contract terms in module 3 of the CF course.  

From a legal perspective, two FAQs offer insights into the ways to address problems that may arise in a CF scheme and the roles of legislations and regulations. To learn more about these issues, module 4 of the CF course discusses what to do if things go wrong, and module 5 delves into the enabling legal environment for CF.

Hope you will find these FAQs helpful. We remain committed to updating FAQs to include more insightful questions and answers. We welcome the submission of additional questions regarding CF to Contract‑[email protected].