Nowadays, agricultural-food system has been experiencing major changes which are driven mainly by recent developments in consumer preferences and attitudes, technological improvements, food safety issues and related regulations. The advanced agro-food sec

FAO’s previous contribution to the development of contract farming saw the publication in 2015 of the UNIDROIT/FAO/IFAD Legal Guide on Contract Farming, which focused on the bilateral relationship between an agricultural producer and a contractor. This Legislative Study develops that research and focuses on the regulatory frameworks for contract farming, aiming to highlight different possible approaches for different contexts. Responsible contract farming can be a powerful tool for small scale farmers in developing countries to move towards larger scalecommercial production. It can create economic wealth, contribute to supply chain efficiency through the production of higher quantities of better quality products, and contribute to achieving domestic food security objectives. Maximizing these benefits while minimizing the inherent risks of contract farming is reliant upon the forging of an enabling environment, a key part of which is the domestic regulatory framework. This Legislative Study provides guidance to domestic regulators and other interested readers on how to appraise and potentially reform domestic regulatory frameworks to achieve responsible contract farming. Recognising that different countries and contextual realties may benefit from different regulatory solutions, this Study provides several examples, supported by representative case studies, on how contract farming can be regulated, without promoting a single solution as the most appropriate. Please visit FAO’s Contract Farming Resource Centre, http://www.fao.org/in-action/contract-farming/en/, which is a regularly updated website hosting a variety of material on contract farming both from FAO and from other recognized authors.

Wracked by poverty, famine, and drought, Africa is typically represented as agriculturally stagnant, backward, and crisis-prone. Living Under Contract, however, highlights the dynamic, changing character of sub-Saharan agrarian systems by focusing on contract farming. A relatively new and increasingly widespread way of organizing peasant agriculture, contract farming promotes production of a wide variety of crops--from flowers to cocoa, from fresh vegetables to rice--under contract to agribusinesses, exporters, and processers. The proliferation of African growers producing under contract is in fact part of broader changes in the global agro-food system. In this examination of agricultural restructuring and its effect upon various African societies, editors Peter Little and Michael Watts bring together anthropologists, economists, geographers, political scientists, and sociologists to explore the origins, forms, and consequences of contract production in several African countries, particularly Kenya, the Gambia, Zimbabwe, and the Ivory Coast. Documenting how contract production links farmers, agribusiness, and the state, the contributors examine problematic aspects of this method of agrarian reform. Their case studies, based on long-term field work and analysis on the village and household level, chart the complex effects of contract production on the organization of work and the labor process, rural inequality, gender relations, labor markets, local accumulation strategies, and regional development. Living Under Contract reveals that contract farming represents a distinctive form in which African growers are incorporated into national and world markets. Contract production, which has been a central feature of the agricultural landscape in the advanced capitalist states, is an emerging strategy for "capturing peasants" and for confronting the agrarian question in the late twentieth century.

This study compares contract and non-contract growers of apples and green onions in Shandong Province, China in order to explore the constraints on participation and the impact of contract farming on income. We find little evidence that firms prefer to work with larger farms, though all farms in the area are quite small. Using a Heckman selection-correction model, we find that contract farming raises income even after controlling for observable and unobservable household characteristics. These results suggest that contract farming can help raise small-farm income, though questions remain regarding the number of farmers that can be brought into such schemes.

This book aims to typify the extent to which contract farming is helping small farmers to access markets and meet increasingly stringent requirements, not only of "modern" food manufacturers, retailers, exporters and food service firms,by also in non-food sectors such as biofuels and forestry. It also seeks to clarify differences in the functionality of contracts depending on commodity, market, technology, public policies and country circumstances. Conceptual issues are discussed and a series of case study appraisals based on real world examples from developing regions are presented. The issuesraised by the case study authors and the key messages synthesized in the initial book chapter bring new insights and contributions to further enrich knowledge on contract farming as a tool for inclusive market access in development countries.