MySheen

Order agriculture calls for third party participation.

Published: 2024-11-08 Author: mysheen
Last Updated: 2024/11/08, Order agriculture calls for third party participation.

From garlic and ginger in previous years to Maca and pineapple this year, farmers have been hurt by the collapse in agricultural prices. As an important means of fixing production by sales, order agriculture plays a certain role in stabilizing the price of agricultural products, ensuring farmers' reasonable income and resisting market price risk. However, the reporter's investigation found that in the actual operation, contract agriculture became difficult to implement because of some farmers' poor awareness of contracts and malicious breach of contract, which in turn hurt merchants and farmers. (People's Daily, July 6)

In some places, contract agriculture is difficult because some farmers are in breach of contract. Liu Zhixiong, an associate professor at the Business School of China University of political Science and Law, said, "at present, there are no effective measures to solve this problem." I don't think we should be so pessimistic. Don't you often say that "there are always more ways than difficulties"? why not think of a way to solve the problem?

Here, shallowly, the author suggests that order agriculture, there should be "third parties" involved.

In order agriculture, buyers and sellers have production and marketing contracts in advance, but some farmers, even if they sell more than two or three yuan per jin, they are not afraid of breach of contract, because once they default, the losses of purchasing enterprises fall into the families of relatively scattered farmers. The output and output value of each family is not high, and the collection cost of each enterprise is high, but it is very difficult to go to court to win the case, but it is very difficult to enforce it, and "really have to enforce it." Once the farmers boycott in groups and cause mass incidents, the government can often only adopt an attitude of peace. "in other words, the cost of these farmers' breach of contract is almost zero, and this is where the problem lies.

To prescribe the right remedy to the case, whether it is the buyer or the seller, order agriculture, when signing the contract, there should also be the intervention of a "third party" to strengthen supervision to ensure the implementation of the contract, not only to protect the legitimate interests of the seller, but also to protect the legitimate interests of the buyer, in order to "win-win", so that the road of "order agriculture" becomes wider and wider.

A "third party" here, or a government agency. In order agriculture, whether the buyer or the seller, when signing a supply and marketing contract, both parties have to pay a certain "credit deposit" and hand it over to a "third party" government agency for safekeeping. If, when it comes to the fulfillment of the contract, one party breaches the contract due to changes in the market situation, or does not buy at the contract price, or does not sell at the contract price, I am sorry, according to the provisions of the contract, the deposit of the defaulting party shall be compensated by the third party as the "price of breach of contract", that is to say, breach of contract will pay the cost of breach of contract, and breach of contract will pay a price.

The "third party" here, or the insurance company. Order agriculture, whether the buyer or the seller, when signing a supply and marketing contract, both parties have to take out insurance with the insurance company, and once the market situation changes and one party breaches the contract, or is unwilling to buy it at the contract price, or is unwilling to sell it at the contract price, sorry, the victim will claim compensation from the insurance company in order to minimize its "victimized loss" as much as possible.

Not only garlic, ginger, maca, pineapple, but also many "famous and special products" in agriculture, forestry, animal husbandry and fishing, including live pigs, these "order agriculture" should involve "third parties" to ensure that there are no more "ups and downs" of the market, so as to blaze a path of modern agriculture with Chinese characteristics.

 
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