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Planning and implementing contract farming operations: Guiding questions for contract analysis








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    Guiding questions for contract analysis 2018
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    In contract farming schemes, the process of developing the contract is very important for building long-lasting trust between farmers and buyers. As a common best practice, the whole contract formation process should be carried out in a fair and transparent manner and in good faith. A good practice is for farmers to be involved in discussions with the buyer from the beginning of the negotiation and contract formation phases, to make sure they understand all the conditions included in the contract, and to ensure that their interests and rights are considered. The following questions aim to serve as a guiding tool for analyzing contracts and can be used by all involved parties. The signing of the contract should only take place after a full agreement on all the conditions has been reached and the negotiation phase is completed.
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    UNIDROIT/FAO/IFAD Legal Guide on Contract Farming 2015
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    Contract farming, broadly understood as agricultural production and marketing carried out under a previous agreement between producers and their buyers, supports the production of a wide range of agricultural commodities and its use is growing in many countries. Mindful of the importance of enhancing knowledge and awareness of the legal regime applicable to contract farming operations, the International Institute for the Unification of Private Law (UNIDROIT), the Food and Agriculture Organizatio n of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD) have prepared this UNIDROIT/FAO/IFAD Legal Guide on Contract Farming. The Guide is a useful tool and reference point for a broad range of users involved in contract farming practice, policy design, legal research and capacity building. It can contribute as well to create a favourable, equitable and sustainable environment for contract farming.

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