Contract farming has significant benefits for both the farmers and sponsors (investors).

Advantages for farmers/ Landowners :

• 1 )Inputs and production services are often supplied by the investor
• 2) Contract farming often introduces new technology and new skills reducing cost of agriculture
• 3) Contract farming can open up new markets reducing price risk for farmers/landowners and increasing profits

Advantages for Investors :

• 1) Saves huge investment in land
• 2) Gives access  to profitable and 100% Tax-free income
• 3) Production reliability, quality consistency and shared risk

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