Production contracts with growers of crops and livestock have become common in recent years. This has resulted from the movement away from commodity production to the emergence of specialty agricultural products. It has also been driven by the trend towards an integrated supply chain in agriculture.
The use of production contracts creates a new set of issues for growers to examine and resolve. Specialty Markets Bring Different Risk Management Needs provides an examination of some of these issues that growers need to examine.
More information on grower contracts is provided in the box at the right.