Contract farming provide mutual benefits for producers both processors and/or marketing firms. When the land holding size is very small the farmers produce may not the produce which is more suitable for easy and profitable marketing, opting for contract farming will facilitate the marginal farmer to overcome this problem. Contract farming company will take the responsibility of providing the necessary inputs for the smooth production of agricultural produce and also provide market linkage. In turn the contract farming company will have benefit of continuous supply of raw material for the processing or marketing of the produce. An assessment of the impact of contract farming on farmers who carried out on 120 farmers in Karnataka and the study revealed that most of the farmers opted for contract farming because of guaranteed market, availability of agri inputs and buy back agreement.
contract farming, forward marketing, small and marginal farmers
