Contract farming.

Contract farming is an agreement between farmers and buyers: both parties agree in advance on the terms and conditions that will govern the production and marketing of agricultural products. These conditions typically specify:

The price that must be paid to the farmer.
The quantity and quality of the product demanded by the buyer.
The delivery date to buyers.

The contract may also include more detailed information on how production will be carried out or whether inputs, such as seeds, fertilizers and technical advice, will be supplied by the buyer.

Why get into contract farming?

The demand for food and agricultural products has increased dramatically and food markets have become more competitive because consumers in many countries demand food products that are not only safe to consume, but are also produced in an environmentally friendly manner and with the workers who deal with production. In this new context, buyers of agricultural products have to collaborate more with their partners in the supply chain, in order to obtain sufficient good quality raw materials directly from farmers and thus satisfy their customers’ demand for food products. Contract farming can serve to connect small farmers with buyers. Thanks to it, farmers can know in advance when, to whom and at what price they are going to sell their products, which allows them to reduce the uncertainty inherent to agricultural activity and better plan their production. TH Special Oils has a special interest in crops such as linoleic and oleic Safflower, Canola, Sunflower and Avocado. In order to have a supply of these products for the manufacture of our edible oils that we market nationally and internationally.

Main advantages of planting oilseeds.

(Safflower Linoleic, Safflower Oleic, Canola and Sunflower).

They prioritize the efficient use of water:

In the irrigation mode they have savings of up to 40%. In seasonal weather, these crops have greater resistance to drought and make better use of residual moisture.

They are an excellent crop rotation alternative:

This avoids monoculture, reduces soil degradation and environmental pollution due to the excessive application of pesticides to combat pests and diseases.

Promotes market ordering:

In regions with surplus crops and marketing problems.

Assured marketing:

From planting through contract farming.

They replace imports:

Which contribute to less dependence on the outside world.

What requirements must be met to contract with us?

Surface.

To formalize a purchase and sale marketing contract for Safflower, Canola and Sunflower, we recommend that you contact us. So that together with you we can analyze the planting surface that you intend to plant and be able to offer you planting seed with payment against harvest, in case you do not have this type of materials for your planting.

Having well established the planting area, we can calculate an average volume of tons obtained for the harvest, and consider this information in your contract.

Price.

Something that is of interest to you is the price that will be paid for your harvest. At the time of carrying out this activity, the company offers you a reference price, that is, a floor price prior to sowing. This reference price is based on international markets, so this scheme will help you protect yourself from a price drop and also if the market level is bullish since your price would have this same trend. And if the price remains at the level agreed in the contract, that would be what would be paid at the end of the harvest.

Legal and Tax Information.

We need the following information from you: address, municipality, state, zip code and the name of the legal representative who will be the person in charge and responsible for signing the commercial agreement with us.

It is also important that you present us an invoice with which your payment will be made in a timely manner for the harvest delivered. The preparation of contracts has to be with real data because this data will be presented to Federal and State agencies to manage alternative support to benefit these crops.

Dates.

We recommend that you make your sowing planning in advance, with the advantage of respecting sowing dates and thus helping to increase production.

The sowing dates in the contracts can be carried out in a period of time between the month of November and December, which are the appropriate months for Autumn-Winter cycle crops, and during the months of May and June, which are the appropriate months for the crops. crops of the Spring-Summer cycle.