With reference to the Contract Farming, consider the following statements:1. Contract farming signifies an agricultural production (excluding livestock and poultry)based on a pre-harvest agreement between buyers and producers (farmers or farmerorganisations).2. It addresses the problem of low investment in agriculture and ensures a supply ofquality inputs, technical guidance and management support for farmers.Which of the statements given above is/are NOT correct?

2023

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	1 only
B	2 only
C	Both 1 and 2
D	Neither 1 nor 2

Explanation:

Detailed explanation-1: -Contract farming can be defined as an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices.

Detailed explanation-2: -A contract grower is an independent farmer working under contract with a chicken production and processing company to raise chickens. More than 90% of all chickens raised for meat in the U.S. (broiler chickens) are raised by contract growers.

Detailed explanation-3: -Contract farming refers to varied formal and informal agreements between producers and processors or buyers. It may include loose buying arrangements, simple purchase agreements and supervised production with input provision, with tied loans and risk coverage.

There is 1 question to complete.