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In literature there are many definitions of contract farming. The first one was by R.L. Jones, Vertical coordination in agriculture, AER no. 19, USDA Washington D. C., 1963, but more relevance is given to that by E.
Rehber, Contract farming Theory and Practice, ICFAI Press Hyderabad, 2007, according to whom contract farming is «a contractual arrangement by a farmer and a firm, whether oral or written, which provides resources and/or specifies one or more conditions of production, in addition to one or more marketing conditions, for an agricultural product, which is non-transferable». This general category includes at least three types of contract, following the progression of increasing dominance by one party. The former is the “market specification contract”, in which farmer maintain a full control over production, the second one is the “resource providing contract”, which is drafted between firm and farmer and requires certain quality standards, and the last one, the “production-management contract”, in which the firm has the highest control over the farmer. About these issues see recently A. Rossi, The growing role of contract farming for food security, in Envisioning a future without food waste and food poverty. Societal challenges (L. Escajedo San-Epifanio – Mextre De Renobalese Scheifler eds.), Wagenigen Academic Publishers, 2015, 301 ss.
Buchanan, The Reason of Rules: Constitutional Political Economy, University Press Cambridge, 2008, 1p. Similarly R.S. Summers, Economics and the Autonomy of Law. Legal Analysis and Legal Theory, in Rechtstheorie, Beiheft 10, Vernuft und Erfahrung im Rechtsdenken der Gegenwart, Duncker & Humblot Berlin, 1986, p. Argues that regulatory decisions cannot be based solely on an economic assessment of efficiency. Posner, The Ethical and Political Basis of The Efficiency Norm in Common Law Adjudication, in Hofstra L.
846 recognizes that the overall usefulness is an ethical criterion of the common law that does not necessarily apply to other legal systems. This concentration is particularly evident, despite the size of the market, in the US. On this point see N.D.
MacDonald, Local Monopsony Power in the Market for Broilers? Evidence from a Farm Survey, in Paper at the Annual Meeting of the AAEA, Orlando Florida, 2008, pp.
A similar situation is also represented in the Green Paper of the European Commission On Unfair Trading Practices in the Business-to-Business Food and non-Food Supply chain in Europe, 2013/037, that points out the risk of unfair trade practices resulting from the negotia-ting power imbalances. With regard to funding for innovations see e.g. Italian law art. Regulatory measures to promote the conclusion of collective agreements in order to increase the bargaining power of the weaker party within the food supply chain is not a unique exclusive feature of European legal systems, but are found also in the US legislation: D. O’Brien, Policy approaches to address problems associated with consolidation and vertical integration in agriculture, in Drake Journal of Agricultural Law, 2004, p. In this sense Italian law art.
62, comma 2, d.l.