A series of documents on the role of contract agriculture in promoting inclusive market access, published by FAO in 2013,[16] includes contractual agreements in Argentina, Bangladesh, Brazil, China, Honduras, South Africa, Tanzania and Thailand. The publishers conclude that, despite a preference for purchases by large farmers, factors other than the size of the farm contribute to a company`s decision and that, therefore, contract farming will not necessarily result in the exclusion of smallholders from supply chains. Geographical factors are important, both in terms of their impact on production and factors such as land rights, gender and ethnic relations. Publishers note a gradual convergence of clauses and conditions used in contracts and note that the two most common contractual provisions, which relate to technical assistance and pre-financed inputs, may be essential to the inclusion of smallholders. The publication focuses on the role of third parties, such as NGOs. B, in the coordination of farmers. Publishers also identify the possible roles of third parties in providing independent quality certifications and in certifying contracted enterprises to reduce the risk to farmers. 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. 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. (1) All disputes arising from this agreement are resolved, as far as possible, through discussions between the company, the farmers` group and the farmer. As we have often heard, the health of a supply chain is the health of the business.

Many players in the agricultural value chain (for example. B, retail chains, wholesalers, cooperatives) source from farmers and have two ultimate objectives: sustainability and profitability. Even seemingly successful contracts from a legal point of view can lead to other difficulties. For example, family relationships may be at risk. The work for contracts is often done by women, but the contracts are without exception in the name of the man who also receives the payment. Men participate in meetings and training, but women often receive no training. Land used by women for crops or commercial production can be taken over for wage production. [6] This can have an impact not only on food production, but also on the status of women. Contracts may be broken due to mismanagement of the business or unrealistic expectations about farmers` capacity or beyond yields.

This was a particular problem in attempts to promote the remuneration of biofuel plants. [11] (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 any of the parties to renew the contract.