The contract farming model provides farmers with the confidence to stabilize production and increase income, and here are some specific reasons:
Predetermined demand: By pre-ordering demand in advance, farmers can have a clear sales outlet and market demand in the production process, avoiding the risk of blind production and unsalable, and stabilizing the sales channels of agricultural products.
Improve the added value of products: order agriculture encourages farmers to produce high-quality, characteristic agricultural products, through direct communication with consumers and demand feedback, farmers can adjust and upgrade according to market demand, improve the added value of products, so as to obtain better and profit margins.
Further integration of resources: The contract agriculture model has given birth to the development of agricultural cooperatives, professional farmer cooperatives and other organizational forms, through the integration of resources and scale operation, reduce production costs and improve efficiency. By participating in cooperative organizations, farmers can share more market information, technical support and financial support, and stabilize their economic income.
Improve the level of agricultural science and technology: Contract agriculture prompts farmers to more actively introduce and apply modern technology, such as the Internet of Things, big data, remote sensing and other technical means to improve agricultural production efficiency and management level. With the support of science and technology, farmers can better cope with natural disasters such as pests and diseases, climate change, etc., reduce production risks, and stabilize the output of agricultural products.
Customized service: order agriculture provides opportunities for customized production and fine management, farmers can carry out targeted management and operation of soil, fertilization, irrigation, pest control and other aspects according to market demand and consumer requirements, improve the quality and market competitiveness of agricultural products, so as to obtain better returns.
Develop agricultural product brands: Order agriculture encourages farmers to build their own brands or participate in brand cooperation, and enhance product visibility and market recognition through brand packaging, publicity and promotion, etc., and further increase farmers' sales and profit margins.
Through the contract agriculture model, farmers can grasp the market demand information more stably, increase the added value of products, enjoy the dividends of agricultural technology and resource integration, and obtain a more sustainable agricultural product business model, so as to stabilize production and increase income.