Skip to main content

NC State Extension

Agricultural Contracts

en Español / em Português
Español

El inglés es el idioma de control de esta página. En la medida en que haya algún conflicto entre la traducción al inglés y la traducción, el inglés prevalece.

Al hacer clic en el enlace de traducción se activa un servicio de traducción gratuito para convertir la página al español. Al igual que con cualquier traducción por Internet, la conversión no es sensible al contexto y puede que no traduzca el texto en su significado original. NC State Extension no garantiza la exactitud del texto traducido. Por favor, tenga en cuenta que algunas aplicaciones y/o servicios pueden no funcionar como se espera cuando se traducen.


Português

Inglês é o idioma de controle desta página. Na medida que haja algum conflito entre o texto original em Inglês e a tradução, o Inglês prevalece.

Ao clicar no link de tradução, um serviço gratuito de tradução será ativado para converter a página para o Português. Como em qualquer tradução pela internet, a conversão não é sensivel ao contexto e pode não ocorrer a tradução para o significado orginal. O serviço de Extensão da Carolina do Norte (NC State Extension) não garante a exatidão do texto traduzido. Por favor, observe que algumas funções ou serviços podem não funcionar como esperado após a tradução.


English

English is the controlling language of this page. To the extent there is any conflict between the English text and the translation, English controls.

Clicking on the translation link activates a free translation service to convert the page to Spanish. As with any Internet translation, the conversion is not context-sensitive and may not translate the text to its original meaning. NC State Extension does not guarantee the accuracy of the translated text. Please note that some applications and/or services may not function as expected when translated.

Collapse ▲

Agricultural contracts are risk management tools available to blueberry producers and other specialty or value-added crop producers. Contracts are a good risk management option because these specialty producers typically do not have as much variety in the crop insurance products available to them and using futures markets is not an option, as is the case for producers of major commodities such as corn, soybeans and wheat.

A contract is usually defined as a written or oral agreement between two or more parties involving an enforceable commitment to do or refrain from doing something. In agriculture, contracts between farmers and agribusinesses specify certain conditions associated with producing or marketing an agricultural product. By combining various market functions, contracting generally reduces participants’ exposure to risk. In addition to specifying certain quality requirements, contracts also can specify price, quantities to be produced and services to be provided. Contracts may address various elements of marketing risk, including price risk, “placement risk” and quality compensation risk. Contracts also may address production risk.

For more information about agricultural contracts as risk management tools, take a look at Agricultural Contracts and Risk Management and Contracts as a Risk Management Tool.

Written By

Bill Cline, N.C. Cooperative ExtensionBill ClineExtension Specialist (Small Fruit Production & Pathology) Call Bill Email Bill Entomology & Plant Pathology
NC State Extension, NC State University
Page Last Updated: 3 years ago
Was the information on this page helpful? Yes check No close