Contract Farming

Contract Farming

Farming contracts are agreements between a farmer and a buyer that stipulates what the farmer will grow and how much they will grow usually in return for guaranteed purchase of the product or financial support in purchase of inputs (Pesticides, fertilisers, seeds, adjuvants etc .). In most instances of contract farming, the farm is family owned while the buyer is a larger corporation. This makes it difficult to distinguish the contract farmers from “corporate farms,” because they are family farms but with significant corporate influence. This subtle distinction left a loop-hole in many state laws that prohibited corporate farming, effectively allowing corporations to farm in these states as long as they contracted with local farm owners.

Russia attracts foreign farmers with inexpensive land. Justus Walker, an American who moved to Russia more than 10 years ago, today runs and owns a family farm in the Altai region where he breeds goats and makes cheese. “The most important piece of infrastructure for a farmer is the land. Even by South American standards, not to mention global standards, land in Russia costs peanuts,” says the farmer.