Answer:
Step-by-step explanation:
The contract production system is a type of agricultural arrangement where a farmer agrees to produce a certain crop or livestock product for a contractor, who usually provides inputs, technical assistance, and marketing services. The contractor pays the farmer a predetermined price or a share of the revenue from the sale of the product.
The most important thing that a farmer does in the contract production system is to follow the specifications and requirements of the contractor. This means that the farmer has to produce the quantity and quality of the product that the contractor demands, and deliver it on time and in good condition. The farmer also has to comply with any standards or certifications that the contractor requires, such as organic, fair trade, or animal welfare.
By following the specifications and requirements of the contractor, the farmer can ensure that they will receive the agreed payment and avoid any penalties or disputes. The farmer can also benefit from the support and guidance of the contractor, who may have more expertise and access to markets than the farmer. However, the farmer also has to bear some risks and costs, such as weather, pests, diseases, input prices, and contract enforcement.
Therefore, the contract production system can be a beneficial or challenging arrangement for farmers, depending on the terms and conditions of the contract, the relationship between the farmer and the contractor, and the market situation. The farmer has to weigh the advantages and disadvantages of entering into such a system, and negotiate for fair and favorable contracts.