Association introduces contract farming to develop nation`s agricultural sector


The Federation of Agricultural Commodity Association of Nigeria (FACAN) said on Thursday that it had introduced contract farming among its members as part of efforts to develop the nation`s agricultural sector.
The contract farming specialist with FACAN, Mr Isaac Ojonugwa, disclosed this in Abuja in an interview with the News Agency of Nigeria (NAN).
``FACAN has taken it upon itself to organise all the agricultural commodity producers to venture into contract farming.
``Contract farming is a production and marketing agreement between farmers and the off-takers.
``This is what is going to sustain all the commodities and make them independent of government’s assistance all the time, `` Ojonugwa said.
He explained that contract farming would also link agro-commodity producers with financial institutions and insurance companies, and enable farmers to know their obligations.
``Under this arrangement, farmers would be able to know their obligations as to the quality of what they are producing for the off-takers.
``The off-takers would be rest assured of the quality of the raw materials they are getting for steady production, while the farmers would be sure of a ready market for their products.
``This is very important and it is what sustains commodities all over the world. If we must move ahead we must be ready to venture into contract farming, `` he said.
Ojonugwa added that contract farming would help to address the problem of post-harvest losses occasioned by lack of access to market by agro-commodity farmers.

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