IISD and FAO have developed a model convention on responsible contract farming to help farmers and responsible buyers cope with the shortcomings of contract agriculture. (3) Cash (or credit, once the farmer has qualified as an established and reliable contract farmer), the nature and quantity of fertilizers and agrochemicals needed for the area planted by the farmer for green beans. 2. This contract sets out the conditions under which farmers will grow green beans and the company will encourage, buy, process and market them. (2) If both parties are satisfied with the outcome of the agreement, it may be extended by an additional season, but there is no obligation for either party to renew the contract. 2. If the farmer does not follow the procedures described in this agreement, he is notified orally and in writing. After three written warnings, the company has the right to terminate the contract. (1) All disputes arising from this agreement are resolved, as far as possible, through discussions between the company, the farmers` group and the farmer. (1) to use the portion of its operation, measured and approved by the company, for the cultivation of green beans for the duration of this agreement. 1. This agreement applies during a growing period from the date of the signing to the end of the economic harvest of green beans.
I have read and understood the content of this agreement and I sign it voluntarily. 3. If the company does not meet its obligations under item 2 above, the farmer has the right to demand compensation for the value of the services lost or for the value of the crop lost in the rates agreed between the company and the group of farmers. Contract Farming must allow farmers to safely sell their crops and agricultural enterprises, with a regular supply of agricultural production required by the market. In essence, Contract Farming is an obligation on a landowner or farmer to make available to a known buyer a specified agricultural commodity at a given time, price and quantity. As a general rule, the buyer (the agribusiness company) will control the production process by adding additional provisions, such as. B technical assistance and credit. 4. Payment for green beans and production inputs is set as follows: SAMPLE FARMER TO COMPANY CONTRACT FOR THE CULTIVATION OF GREEN BEANS (4) To advise the farmer on all technical aspects of growing green beans. 4. If the farmer provides green beans that exceed the required quality standards or expected level of production, he is entitled to a bonus equal to a level agreed between the company and the group of farmers.
As a result, Contract Farming enables poor farmers to transform obsolete farming and management practices into market-oriented commercial production, resulting in employment and increased incomes.