Abstract:

The paper describes the contract system presented in agriculture as an instrument for economic security and sustainable development of the definite region. The contract system is widely used in the world. The experience of several countries (Thailand, the Philippines, etc.) are analized. A number of factors that affect the success of contract farming are given. Moreover, it is concluded that contracts must be supported by law and effective legal system. Existing laws must be revised to make sure that they do not restrict business. Bureaucratic support should be minimized in the formation of the contract. Author thinks that the contract system in agriculture is a key element of sustainable development because contracts are used to exploit natural resources in tandem with social and economic changes that strengthen current and future capacity to meet human needs

Keywords: agriculture, sustainable development, food security, contracting food, contract system