Managed and Contract Farming

Jatropha can be harvested in the form of managed and contract farming. With managed plantations, farmland and labor are directly controlled by the company or through its subsidiaries and affiliates. The farmers are salaried employees of the plantation company. Under contract farming, the company, with the help of local governments, will establish agreements with local farmers or cooperatives to buy back harvested seeds at fixed prices. The company will supply seedlings, arrange

bank financing, provide support and advice during cultivation, and monitor the conditions of the crop. The company does not own the land and pays the farmers per day, per hectare, or per kilogram of harvested fruits.

To spread the financial risks, a combination of managed and contract farming spread out over several regions and countries is the best strategy in plantation management.