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Contract farming involves agricultural production being carried out on the basis of an agreement between the buyer and farm producers. Sometimes it involves the buyer specifying the quality required and the price, with the farmer agreeing to deliver at a future date.
The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020 was an act of the Indian Government that creates a national framework for contract farming through an agreement between a farmer and a buyer before the production or rearing of any farm produces. [1] [2]
The scheme has a long history in Indonesia, where it is commonly known as Inti-Plasma farming, Inti being the nucleus and plasma the smallholdings. It has been implemented in different ways since 1978. The first model was called PIR Lokal (Perkebunan Inti Rakyat Lokal) and was designed for local populations.
Sharecropping agreements can be made fairly, as a form of tenant farming or sharefarming that has a variable rental payment, paid in arrears. There are three different types of contracts. [38] Workers can rent plots of land from the owner for a certain sum and keep the whole crop.
In addition to both the bill of sale and the boarding fee, the herdshare agreement may include terms for a trial period, collection and storage of the milk, care of the herd, maintenance of the farm, liability, default, and risk of loss. Terms for the boarding, care of the herd, and handling of the milk may be separate documents.
Most legal definitions of corporate farming in the United States pertain to tax laws, [2] anti-corporate farming laws, [3] and census data collection. [4] These definitions mostly reference farm income, indicating farms over a certain threshold as corporate farms, as well as ownership of the farm, specifically targeting farms that do not pass ownership through family lines.