Contract Farming Promotion and Development Act, B.E. 2560 (2017).

This Act establishes Contract Farming Promotion and Development Commission to develop plans and measures for contract farming development, as well as to give counsel on the resolution of problems and obstacles arising from contract farming agreements. The Act also tasks the Office of the Permanent Secretary for Agriculture and Co-operatives (OPSAC) disseminate knowledge and give advice to farmers on conclusion of contract, access to finance, and agricultural technology.
The Act consists of 4 Chapters and 48 Sections. The four Chapters and their respective Parts are the following: I) Contract Farming Promotion and Development Commission; II) Contract Farming – Part I Agricultural Business Operators – Part II Conclusion of Contract Farming Agreements; III) Dispute Mediation; IV) Penalties.
Chapter II requires all agricultural business operators (ABOs) who intend to engage in contract farming to submit written notification to OPSAC, who will then compile and maintain a public registry, prior to the commencement and cessation of the operation. The Chapter also mandates that a ‘prospectus’ with required minimum and accurate contents must be prepared by the ABOs prior to conclusion of any contract farming agreement (CFA). A certified copy of the prospectus must be furnished to OPSAC.
The Act clearly specifies that CFA must be in writing, in easy-to-understand Thai language, and containing specified details such as on period and place of production, price and remuneration, delivery, ownership of property, and risk allocation etc. The Act also prescribes that certain terms and conditions egregiously unfavourable to the farmers shall be deemed to be of no effect. In addition, Chapter III compels contractual parties to submit their disputes arising from the execution of CFA to Provincial Dispute Mediation Committee before resorting to arbitration or any court proceedings.