Contract farming with FET
Contract farming with Food Export Trade LLC — long-term partnership with agricultural producers and farmers, 5 and 10-year contracts with advance payment of up to 50% of the annual cost of the planned production and delivery of agricultural products.
FET contracting agreements are simple and clear documents that define the type of agricultural products, their volume, quality criteria, general principles of interaction, the order of agronomic support, long-term transparent price calculations.
Food Export Trade LLC transfers significant amounts of advance payments to agricultural producers and farmers and is interested in improving the efficiency, financial stability and development of contractors involved in the company’s activities. Therefore, it provides them with full agro-support: soil analyses, development of crop rotation maps, corrective measures to improve soil fertility and productivity, preparation of annual flow charts, monitoring of fields, works, tools and services under the program Agronomist Assistant. The complex of these measures ultimately results in an increase in gross harvest per hectare, reducing production costs and losses, provides resources and technologies for the involvement of new land into agricultural turnover.
Scheduled business operations for agribusiness is an opportunity to:
- not to think about marketing (what to produce — everything is defined for the years ahead in the Annex «Prospective volumes») and demand (guaranteed sales, because until February 28 annually signed the Annex «Specification» for the coming «grain year», and the advance payment is transferred);
- minimize price fluctuations and have transparent pricing (formula-based pricing);
- increase access to financial resources;
- minimize the risks of losses when working with intermediaries and pay-as-you-deliver deals;
- receive and master the best agro-technologies (as part of agronomic support);
- bring the culture of production and productivity of their fields to a new level of quality (40-50 quintal/ha, instead of 15-25 quintal/ha for grains, 18-20 quintal/ha for soybeans);
- make long-term development plans and put them into practice.