ENVIRON IMPACT ASSESS REV 1990;10:145-155 145
IMPACT ASSESSMENT IN NEWLY INDUSTRIALIZED
COUNTRIES: ISSUES AND PLANNING FRAMEWORKS
CONTRACT FARMING AND RURAL SOCIAL
CHANGE: SOME IMPLICATIONS OF THE
AUSTRALIAN EXPERIENCE
DAVID BURCH,* ROY E. RICKSON,**
AND INARI THIEL***
Contract farming represents a significant change in the organization of farm pro-
duction in both the developed and developing worlds. It integrates farmers and
farm families into the wider national and global economy by separating land
ownership from the power to make land-use decisions. These include cropping,
use of chemicals (pesticides, herbicides, fertilizers), and harvesting decisions, and
are no longer the exclusive province of farm owners and operators. The primary
benefit for farmers of contract farming is a reduction of economic risk, while
contractors are guaranteed a steady source of supply allowing investment in large-
scale processing systems. The drawback is that farm families are increasingly
marginalized by contract farming. Farmers lose power by dependence upon pro-
cessing companies for "inputs" and know-how. The spread of contract farming
has accelerated a narrowing of the genetic base of western agriculture, which has
accompanied the development and widespread use of new crop varieties.
Introduction
Changes in the organization of farm production have fundamentally changed
rural communities (Rogers et al. 1988). Contract farming is such a change and
involves a form of vertical integration in which farmers contract with food
*Division of Science and Technology, Griffith University, Nathan, Brisbane, Queensland, Australia.
**Division of Australian Environmental Studies, Griffith University, Nathan, Brisbane, Queensland, Australia.
***Department of Philosophy, University of Queensland, St Lucia, Brisbane, Queensland, Australia.
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