Contract farming

#null #Economics/jobs

Many once-independent farmers resort to contractual arrangements with large agribusiness corporations,17 raising the companies’ animals until slaughter. “Contract growing” now makes up much of the factory farming industry, particularly in the pig and poultry sectors.17 By 1999, contract production accounted for more than 60% of U.S. pig production and 35% of cattle production.18 Today, poultry production is now almost entirely contract-based

Prevalence

Much of the meat we eat is grown by contract farmers — around 60 percent of pork and close to 90 percent of poultry and eggs, according to USDA figures.

Nearly all U.S. poultry production is done under contract with a major poultry firm, nearly 70% of pork production is under contract, and a growing percentage of beef production is under contract as well.

Problems with contract farming

Farmers go in six or 7 figure debts to produce facilities, then every 10 years the integrators force them to upgrade.
The big companies own the only slaughterhouses nearby and they can pull the farmers contract in 3 months leaving them with debt, trapping the farmers.

Contract chicken farmers are exploited

in the U.S poultry industry, where large corporations called “integrators” contract with poultry growers. The integrator provides a grower with the chicks, feed, medication and technical advisors to supervise farm production. The company retains ownership of the birds and expects producers to grow their flocks under very specific management programs. At the end of the growing period, the company picks up the flock and pays the farmer per pound.

Leah garces talks about how chicken farmers in the US are basically slaves: big chicken companies force them into tons of debt.

American farmers are often angry at big corps, they value freedom but don't have it.

if they get one or two sick flocks, they can fall behind on their loans and get trapped in a cycle of debt.