What are the advantages and disadvantages of corporate farming?

If the question is about a business owning the land for production purposes then here are some relevant elements:


  • Economies of scale that provide production (cost) and distribution (revenue) advantages
  • Established processes and work practices leading to good/consistent quality and safety standards
  • Provides opportunities to build a good brand


  • In pursuit of economies of scale business might resort to monoculture production (lack of product variety)
  • Could let to optimizing productivity rather than maximizing value

For contract farming, where the farmers own the land and the business is contracting their land resource and farmers ability to produce. This in my view is a better approach/model for scalability. The biggest challenge here will be that of coordination and aligning different contract partners. So the critical element is to get the contract in such a way that risks-rewards are aligned. The contracting and engagement structure should be designed for everyone to deliver the best efforts and results.