Regulation on the procedures and principles of contract farming.

The purpose of this Regulation is to ensure the development and dissemination of contract farming. This Regulation lays down provisions on the establishment of the management system of contract farming and its integration with other relevant registration systems; the duties of the Ministry; the qualifications of the parties involved in agricultural production contracts in order to protect their rights and determine their responsibilities; the procedures for the members or partners of an agricultural organization to be engaged in contract farming; the delivery and receipt conditions of products subject to the contract; the rates of change in price and quantity; and the limits and scope of in-kind and cash advances. It also determines special provisions concerning contract farming in the fields of plant production, animal production and aquaculture.
This Regulation refers to the principle of freedom of contract, however it states that the products or product groups determined by the Ministry shall be produced on a contract basis in order to ensure supply security in the face of epidemics, developments in the trade of agricultural products, to adjust agricultural production in accordance with domestic or foreign demand, or to protect plant and animal health. It requires producers who will engage in good agricultural practices or organic farming activities within the scope of contract farming to make contracts with control and certification bodies authorized by the Ministry as a prerequisite.