Contract agriculture, also known as contract agriculture and contract agriculture, is a new agricultural production and management mode that has emerged in recent years. It is an agricultural production and marketing mode in which farmers organize and arrange the production of agricultural products according to the orders signed between themselves or their rural organizations and the growers of agricultural products. It has well adapted to the market needs and avoided blind production.
01
Basic concept of order farming
Order agriculture refers to the organization of enterprises and farmers, enterprises and bases plus farmers, cooperatives and farmers, bases and farmers, and then enterprises, cooperatives and bases to effectively integrate rural production resources, to provide production technology and means of production support, so that agricultural planting plans are targeted according to market orders.
The operation mode of order agriculture
Mode 1: Farmers sign contracts with scientific research and seed production units, and rely on scientific research and technical service departments or seed enterprises to develop contract agriculture.
Mode 2: Farmers and agricultural industrialization leading enterprises or processing enterprises sign agricultural product purchase and sales contracts, relying on leading enterprises or processing enterprises to develop contract agriculture.
Mode 3: Farmers sign contracts with professional wholesale markets and rely on large markets to develop contract agriculture.
Mode 4: Farmers sign contracts with professional cooperative economic organizations and professional associations to develop contract agriculture.
Mode 5: Farmers sign contracts through distribution companies, economic agents and merchants, and rely on circulation organizations to develop contract agriculture.
03
The advantages and disadvantages of the development of order agriculture
Advantages of order agriculture development:
What the market needs, what is planted, “order type” planting and sales model to a certain extent to ensure farmers stable income every year, eliminate worries.
Order agriculture allows farmers to establish a closer relationship with enterprises and consumers, so that capital, technology, information is more targeted, but also let farmers stable income, full of motivation.
This oriented production mode focuses on the development of fixed-point agriculture, such as the consumer side can ‘keep’ pear trees, date trees, etc., which can directly solve the financial problem, avoid the occurrence of surplus agricultural products and no one to buy, and farmers can also get money in advance.
The “Internet +” order agriculture model can more effectively alleviate the problem of asymmetric production and marketing of agricultural products. “It can increase the sales radius of agricultural products, increase the number of customers of agricultural products sales, improve the transaction speed of agricultural products, and play a very important role in the further promotion of the scale, standardization and branding of agricultural products production, and through the ‘Internet +’ order agriculture can improve the development speed and efficiency of the entire agricultural economy.”
Disadvantages of contract agriculture development:
Contract agriculture, as an important means to set production by sales, has a certain role in stabilizing agricultural prices, ensuring farmers’ reasonable income and resisting market price risks (such as the production and sales of garlic, onion, ginger, pork, etc.). However, in the actual operation process, order agriculture is difficult to implement because some merchants and farmers have poor contract consciousness and malicious default, which in turn hurts farmers and merchants.
Moreover, agricultural development is faced with multiple risks. The agricultural problem is not a simple information communication problem. All production and consumption have a relationship, and there is no reasonable social division of labor, differentiated development and complementary production units, so there will always be many risks.
There are two types of risk, one due to natural influences and one due to human influences.
In recent years, some orders of order agriculture cannot be performed on time, and the integrity problem is also an important problem facing the development of order agriculture.
This is because agriculture is greatly affected by natural disasters, and farmers’ production may be unable to complete orders due to natural disasters, or when production is reduced, farmers will default and not sell to the purchaser. In addition, when there is a surplus of production in the market, the market price is lower than the contract price of the order, and the acquirer may also default.
Therefore, in order to avoid similar risks, it is necessary to innovate in the system and mechanism of the operation of the order agriculture model, constantly improve and standardize the behavior of farmers and production subjects, ensure integrity, and make it in a virtuous circle.
The human risk mainly refers to preventing agricultural production “ups and downs”, the scale of agricultural production and operation is too small and too scattered, and it is easy to appear that everyone “gets up in a rush” and “breaks up in a rush”, so the situation of “garlic you”, “ginger you army” and “forward onion” occurred before.
No reply content