Contracts in commercial agriculture: enhancing rural producer agency.

Abstract

• This report delves into the various contracts involved in commercial agriculture throughout the value chain. It suggests that producers are generally ‘contract-takers’, and can be at the mercy of contracts both directly and downstream in the value chain, and that contracts can both constrain and enhance farmer agency, depending on how they are implemented. • Capital providers are among those generating contracts in the agricultural value chain, so the intricacies of how farmers can be affected by contracts should be considered when making investment decisions. • A number of recommendations are made to actors, including capital providers, on actions that could be taken to enhance opportunities for rural producer agency in commercial agriculture. These include providing advice and support to producers in in creating, understanding and changing contracts, where necessary, and ensuring that consideration is given to social differentiation and how it affects contracts in commercial agriculture.