Role, Usage and Motivation for Contracting in Agriculture

Agri-food sectors have been going through a remarkable transformation worldwide. This process has been accompanied by an increasing use of contracts, which raises concerns about market transparency, possible consequences for actors of the food supply chains and the role a government in this changing environment. This paper provides a brief overview of structural changes in the sector and main incentives behind the increased use of contracts in agriculture, together with identifying some emerging policy issues.