In United States agricultural policy, production contracts specify who supplies the production inputs, the quality and quantity of the commodity to be produced, and the compensation for the producer; under such contracts, the farmer is paid to provide housing and care for the animals until they are ready for market, but the contractor actually owns the animals.
In 1997, according to the
United States Department of Agriculture
The United States Department of Agriculture (USDA) is the United States federal executive departments, federal executive department responsible for developing and executing federal laws related to farming, forestry, rural economic development, ...
, about 70% of the value of poultry production was under production contracts, 33% of hogs, and 14% of cattle.
See also
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Marketing contract In United States agricultural policy, under a marketing contract, prices (or pricing mechanisms) are established for a commodity before harvest or before the commodity is ready for marketing. Most management decisions remain with the grower, who re ...
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Production flexibility contract In the United States, a production flexibility contract is a 7-year contract covering crop years 1996-2002, authorized by the 1996 farm bill (P.L. 104-127) between the Commodity Credit Corporation (CCC) and farmers, which makes fixed income support ...
References
*{{CRS, article = Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, url = http://ncseonline.org/nle/crsreports/05jun/97-905.pdf, author= Jasper Womach
United States Department of Agriculture