Contract farming ventures offer assured income but can have costly loopholes

Contract farming is an emerging model in Africa’s agricultural sector. It is viewed as a powerful model that links the small-scale farmer to the global market, resulting in higher, stable and highly predictable returns on farming.

The contract farming system entails a production model in which farmers and buyers partner to carry out a certain agricultural enterprise under pre-determined terms. There are various contract farming models. The different types are mostly determined by the type of agri-product that is under consideration, as well the scale of produce and the local legislative requirements.