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contract farming

The fragrance of rice flowers speaks of a good harvest
Agricultural orders, also known as contract farming or contract farming, are a new agricultural production and management model that has emerged in recent years.It organizes and arranges the production of agricultural products based on orders signed between farmers and buyers of agricultural products.Contract farming adapts well to market needs and avoids blind production.

The main characteristics of contract farming include market nature, contract nature, anticipation and risk.The purchase quantity, quality and minimum protective price of agricultural products stipulated in the order enable both parties to enjoy corresponding rights, obligations and binding force, and cannot unilaterally break the contract.Because the order is signed before the agricultural products are grown, it is a kind of futures trade, so it is also called futures agriculture.

There are five main forms of agricultural orders:
Farmers sign contracts with scientific research and seed production units and rely on scientific research and technical service departments or seed companies to develop contract farming.
Farmers sign agricultural product purchase and sales contracts with leading agricultural industrialization enterprises or processing enterprises, and rely on leading enterprises or processing enterprises to develop order agriculture.
Farmers sign contracts with professional wholesale markets and rely on large markets to develop order farming.
Farmers sign contracts with professional cooperative economic organizations and professional associations to develop contract farming.
Farmers sign contracts through distribution companies, brokers, and merchants, and rely on circulation organizations to develop order farming.

Contract farming has many advantages over traditional agriculture, including a stable source of income, effectively avoiding market fluctuations, reducing inventory risks, adapting to market demand, and promoting farmers to increase their income and become rich.
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