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Question

What benefits do farmers derive from contract farming ?

A
Farmers get pre-determined prices.
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B
Improves the quality of the soil.
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C
Improves the quality of crops.
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D
Farmers get financial aid from the companies.
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Solution

The correct options are
A Farmers get pre-determined prices.
D Farmers get financial aid from the companies.
In contract farming, farmers recieve pre-determined prices for their crops if the quality of the yield is satisfactory. They also recieve financial aid to cultivate certain crops. So they use fertilisers extensively which decreases crop and soil quality.

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