Contract Farming
Contract farming has significant benefits for both the farmers and sponsors (investors).
Advantages for farmers/ Landowners :
- Inputs and production services are often supplied by the investor
- Contract farming often introduces new technology and new skills reducing cost of agriculture
- Contract farming can open up new markets reducing price risk for farmers/landowners and increasing profits
Advantages for Investors :
- Saves huge investment in land
- Gives access to profitable and 100% Tax-free income
- Production reliability, quality consistency and shared risk