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In contract farming, which issue requires the most caution for a farmer?

Answer and explanation

Correct answer: Dependence on terms and buyer

The direct answer is option B: dependence on the contract terms and the buyer requires the greatest caution. In contract farming, a farmer agrees to produce a crop according to conditions set in advance, often involving quality, quantity, delivery date, and price. Step by step: the farmer invests land, labour, seed, water, and money; the buyer may control the purchase conditions; if the contract is unclear or bargaining power is unequal, the farmer may face rejection, delayed payment, low returns, or difficulty finding another buyer. Option A is wrong because crop seasons can change due to weather and farming conditions. Option B is correct because careful reading of terms and awareness of buyer dependence protect the farmer. Option C is wrong because land does not increase without work. Option D is wrong because quality standards usually remain important and may become stricter, not disappear. Memory cue: contract farming means read the terms, check the price, quality rules, payment, and buyer obligation.

Related tags

AgricultureContract-FarmingBargaining-PowerMarket

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