Contract Farming Plan to Help Develop Agribusiness 

The Central Bank of Iran has announced new guidelines for “contract farming” to help improve funding for the key sector. 
As per a definition by Food and Agriculture Organization of the United Nations contract farming “is agricultural production carried out according to an agreement between farmers and a buyer, which places conditions on the production and marketing of the commodity”.
Finance in this method involves paying farmers and “executors” to cultivate crops, procure input and machineries. It also involves undertaking expenses for development and research and technical training to create added value, according to the guidelines posted on the CBI website.