This is an arrangement where NMC enter into predefined agreements with grain producers for the production and supply of grains (maize/beans/ sorghum). The basis of such arrangements is a commitment on the part of the farmer to provide that specific grain in quantities and at quality standards determined by NMC. In return NMC must provide technical support and other services at subsidised rates.
Contract farming Program
Under this program, contracted farmers are guaranteed of a market and a premium price of gazetted price + a further 5 percent, whilst non-contracted farmers are only eligible to gazetted price. Other services such as technical service, maize harvesting service (combine harvester), maize haulage service, moisture testing and drying are part of the offering of the program at subsidized rates. Non contracted farmers do have access to these services, but preference is given to contracted farmers and the rate for non-contracted farmers is not subsidized.
Process involed
The process of contracting is simple and straightforward. As a pre-requisite, one must have an area of 3 hectares and above. Then inform NMC office or any NMC Extension Officer about the intention to be part of the contract farming. The Officer would then visit the site to measure and confirm the total area to be contracted. A contract would then follow for signing. A decision on which crop to plant is usually made in consultation with the Extension Officer.