Many farmers have been struggling to understand the rationale behind retaining enough staff for cattle enterprise that caused some farmers to move for agreements with Contact Farming Agreements (CFAs).The agreements have principles that are outlined in the arable sector but due to a raging question on farmers can also work for stock farms. The agreements are in place to relief farmers from unnecessary deductions and put the farmer in control of agricultural businesses and taxes. The agreements on farmer take longer period as compared to arable sectors due to the time is taken to reach production goals due to the time is made by breeding animals.
The CFAs agreements take control of the daily management of the livestock by allowing farmers to take off hands from most of the worries on livestock. Contract Farming Agreements gives farmers an opportunity to run other activities like developing their farms. It also offers a platform for farmers to pursue their farming business in livestock through offering this contracts to manage livestock which in turn they benefit from how the enterprises perform.
Under the Regulation of CFAs, they provide machinery and labor for the running of the livestock enterprise. The cost incurred in the maintenance of the animal is covered in the time of agreement where fees are imposed monthly at necessary amounts. The farmer is required to provide land, building and fixed equipment that is used by the livestock and necessary funding needed to sustain the maintaining of the livestock. The animals are also insured and significant risks associated with animal giving the farmer assurance in the business.