Contract farming in Brazil – an approach to Law and Economics

Abstract Contract farming is based on agreements settled prior to the farmer deciding about agricultural production, and influence their judgment regarding inputs and production systems. Therefore, they provide means of production coordination and safety for both farmer and agro-industry/distributor...

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Main Authors: Kassia Watanabe, Nunziata Stefania Paiva, Ana Elisa Bressan Smith Lourenzani
Format: Article
Language:English
Published: Fundação Getúlio Vargas, Escola de Direito
Series:Revista Direito GV
Subjects:
Online Access:http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322017000100095&lng=en&tlng=en
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author Kassia Watanabe
Nunziata Stefania Paiva
Ana Elisa Bressan Smith Lourenzani
author_facet Kassia Watanabe
Nunziata Stefania Paiva
Ana Elisa Bressan Smith Lourenzani
author_sort Kassia Watanabe
collection DOAJ
description Abstract Contract farming is based on agreements settled prior to the farmer deciding about agricultural production, and influence their judgment regarding inputs and production systems. Therefore, they provide means of production coordination and safety for both farmer and agro-industry/distributor. However, contract farming has its gaps since it is written in abscence of complete information, due to the behavioral assumption of bounded rationality of economic agents. A specific law might generate legal certainty for economic agents, insofar as the Judiciary fulfills the contractual gaps. From the other side, private agents may also fulfill the contractual gaps. As an effort to understand the role of institutions in contract farming, this study aims to analyze the Bill 6,459/2013, which intends to rule contract farming and takes private instituctions into account, through the agency of the Monitoring, Development and Reconciliation of Integration Committee (Cadec). This is an applied research with qualitative approach. The research concludes that the approval of bill might lead to effective typical law for contract farming, provided that the creation of Cadec is encouraged.
format Article
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institution Kabale University
issn 2317-6172
language English
publisher Fundação Getúlio Vargas, Escola de Direito
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series Revista Direito GV
spelling doaj-art-67497f428cc74f7fb21d313957df62002025-02-02T19:32:45ZengFundação Getúlio Vargas, Escola de DireitoRevista Direito GV2317-61721319512210.1590/2317-6172201705S1808-24322017000100095Contract farming in Brazil – an approach to Law and EconomicsKassia WatanabeNunziata Stefania PaivaAna Elisa Bressan Smith LourenzaniAbstract Contract farming is based on agreements settled prior to the farmer deciding about agricultural production, and influence their judgment regarding inputs and production systems. Therefore, they provide means of production coordination and safety for both farmer and agro-industry/distributor. However, contract farming has its gaps since it is written in abscence of complete information, due to the behavioral assumption of bounded rationality of economic agents. A specific law might generate legal certainty for economic agents, insofar as the Judiciary fulfills the contractual gaps. From the other side, private agents may also fulfill the contractual gaps. As an effort to understand the role of institutions in contract farming, this study aims to analyze the Bill 6,459/2013, which intends to rule contract farming and takes private instituctions into account, through the agency of the Monitoring, Development and Reconciliation of Integration Committee (Cadec). This is an applied research with qualitative approach. The research concludes that the approval of bill might lead to effective typical law for contract farming, provided that the creation of Cadec is encouraged.http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322017000100095&lng=en&tlng=enContrato agroindustrialProjeto de Lei nº 6.459/2013instituições públicas e privadasarranjo institucionalcustos de transação
spellingShingle Kassia Watanabe
Nunziata Stefania Paiva
Ana Elisa Bressan Smith Lourenzani
Contract farming in Brazil – an approach to Law and Economics
Revista Direito GV
Contrato agroindustrial
Projeto de Lei nº 6.459/2013
instituições públicas e privadas
arranjo institucional
custos de transação
title Contract farming in Brazil – an approach to Law and Economics
title_full Contract farming in Brazil – an approach to Law and Economics
title_fullStr Contract farming in Brazil – an approach to Law and Economics
title_full_unstemmed Contract farming in Brazil – an approach to Law and Economics
title_short Contract farming in Brazil – an approach to Law and Economics
title_sort contract farming in brazil an approach to law and economics
topic Contrato agroindustrial
Projeto de Lei nº 6.459/2013
instituições públicas e privadas
arranjo institucional
custos de transação
url http://www.scielo.br/scielo.php?script=sci_arttext&pid=S1808-24322017000100095&lng=en&tlng=en
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AT nunziatastefaniapaiva contractfarminginbrazilanapproachtolawandeconomics
AT anaelisabressansmithlourenzani contractfarminginbrazilanapproachtolawandeconomics