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What is the purpose of contract farming, according to the text?
  • a)
    To reduce the role of farmers in decision-making.
  • b)
    To promote the import of agricultural products.
  • c)
    To encourage private sector participation in agriculture.
  • d)
    To create barriers to entry for new farmers.
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
What is the purpose of contract farming, according to the text?a)To re...

Encouraging private sector participation in agriculture

Contract farming is a practice where agricultural production is carried out based on an agreement between the buyer and the farmer. The purpose of contract farming is to encourage private sector participation in agriculture.

Benefits for private sector

By entering into contracts with farmers, private sector companies can ensure a consistent and quality supply of agricultural products. This helps in reducing their production risks and costs associated with sourcing raw materials.

Benefits for farmers

Contract farming also benefits farmers by providing them with access to technology, inputs, and markets. They receive technical guidance from the contracting company, which can help improve their productivity and profitability. Additionally, farmers are assured of a market for their produce, reducing the uncertainties related to selling their crops.

Promoting agricultural development

Through contract farming, private sector companies can invest in agriculture, leading to the development of the sector. This can result in the modernization of farming practices, increased production, and improved livelihoods for farmers.

Conclusion

In conclusion, the purpose of contract farming is to encourage private sector participation in agriculture, which benefits both the private companies and the farmers. It plays a crucial role in promoting agricultural development and ensuring a sustainable and efficient supply chain for agricultural products.
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Community Answer
What is the purpose of contract farming, according to the text?a)To re...
Contract farming is mentioned as a way to promote greater private sector participation in agriculture. This involves agreements between farmers and agribusiness firms, where farmers produce agricultural products according to specific requirements set by the firms. This helps in technology transfer, capital inflow, and assured markets for crop production.
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What is the purpose of contract farming, according to the text?a)To reduce the role of farmers in decision-making.b)To promote the import of agricultural products.c)To encourage private sector participation in agriculture.d)To create barriers to entry for new farmers.Correct answer is option 'C'. Can you explain this answer?
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