Model Agreement For Responsible Contract Farming

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Apr 11

Model Agreement For Responsible Contract Farming

In this regard, the legal framework is essential to confer legal value on the parties` provisions and, if necessary, to complement them. This is all the more important, given the imbalance of economic power between the parties, which generally characterizes agricultural contracts. Depending on the legal order, the legislation may necessarily apply to certain aspects of the contractual relationship, excluding the possibility for the parties to revoke. Understanding the interaction between the terms and practical implementation of the contract and applicable legislation, including the rules of failure, enhances the security of the parties by alerting them to possible critical issues concerning their rights and remedies throughout the duration of the contract. The practice of treaty production is used in many countries around the world for a wide range of agricultural raw materials and is growing considerably in developing countries. As a result of the dramatic increase in demand for agricultural products, wage moderation is increasing as an instrument for organizing and interconnecting production capacity and market needs, in order to increase and diversify the availability of products in local and global markets and to improve the efficiency of the value chain. With regard to risks, it is also useful to keep in mind that producers may be particularly vulnerable to power imbalances between themselves and the buyer, which can lead to an unequal distribution of risks and responsibilities. Power imbalances can also lead to opaque pricing mechanisms and inspection procedures, making producers vulnerable to the whims of a buyer with little or no room for negotiation. On the other hand, the most important risk for the buyer is that a producer will not be able to make incidental sales or fail to meet the agreed conditions for quality/quantity or delivery production.

Therefore, clarity is essential in the development of the agreement and it may be useful for the parties to agree on a list of definitions in order to clarify potentially controversial concepts. For example, the contract must clearly state which specific standards must be met in order for the goods delivered to be considered good quality or quality. If an existing global/national standard is to be met or used, the treaty must clearly cite and explain it. In order to avoid possible treaty violations, the parties must set the conditions as clearly as possible. These additional measures to ensure transparency and fairness help build goodwill and trust between the parties and build more sustainable and sustainable partnerships. – FAO has developed knowledge and implementation tools (including a summary of the guide, letters to farmers) as well as enlargement and communication actions for training and development programmes, with funds from FONDSD. FAO- IISD have adopted a model agreement for responsible contract farming. These documents, along with other useful resources on the practicalities of contract farming, are available under THE FAO Contract Farming Resource Centre`s contract contracts, which ideally should help reduce the use of chemical fertilizers and pesticides, increase their use efficiency and increase the use of organic inputs. Technical advice and training should also focus on promoting sustainable agricultural practices. Corrective measures are legal measures to protect aggrieved parties in the event of non-compliance by another party. In the event of an offence that is not considered fundamental, the leesive party should be given the opportunity to attempt to remedy the offence.

If the aggrieved party does not resolve the offence, the non-injurious party may be allowed to take corrective action.