Every farm depends on suppliers. Seeds, fertiliser, feed, equipment and transport are all critical inputs. For small-scale farmers, suppliers are not just service providers but also partners who can make or break a season. Yet many farmers rely on verbal promises or informal arrangements. Trust is important, but relying only on a handshake is risky. A written supplier contract provides clarity, reduces disputes and protects the farmer’s investment.

By Molisa Cheda, Founder and Managing Director of Vanguard Legal

Why Written Contracts Matter

Farming is unpredictable enough with weather and markets beyond anyone’s control. The last thing a farmer needs is uncertainty in business relationships. Written contracts help manage risk by clearly setting out what each party is responsible for. They provide a roadmap that can be referred to if problems arise. Without a contract, disputes about delivery times, product quality or payment terms are difficult to resolve.

Key Elements of a Supplier Contract

A good supplier contract should cover:

Product or service details: Exactly what is being supplied, including quantity and quality specifications.
Price and payment terms: The cost, how payment will be made, and when payment is due. Avoid open-ended terms that allow suppliers to demand immediate payment.
Delivery schedule: Clear dates for delivery and what happens if the supplier delivers late.
Dispute resolution: A mechanism for resolving disagreements without going to court, such as mediation or arbitration.
Termination: Circumstances under which the agreement can be ended by either party.

Also read: Lease and land-use agreements for farmers: All you need to know

Common Pitfalls

One of the biggest mistakes farmers make is relying on verbal agreements. While they may work when relationships are strong, they offer little protection if things go wrong. Another common problem is failing to set out quality standards. For example, if a farmer buys fertiliser without specifying the type or grade, they may end up with a product that damages crops. Farmers also sometimes agree to terms that favour the supplier, such as paying upfront without guarantees of delivery.

Building Strong Relationships

Contracts are not only about legal protection. They also build trust. When both parties know their rights and responsibilities, there is less chance of misunderstanding. This strengthens the relationship and allows both farmers and suppliers to focus on growing their businesses. Suppliers are more likely to extend credit or provide better terms to farmers who demonstrate professionalism through written agreements.

Also read: Business registration and structuring for farmers: All you need to know

Scaling Up With Confidence

As farmers expand, their dealings with suppliers become more complex. Inputs are bought in larger quantities and supply arrangements may stretch over several seasons. At this stage, contracts become even more important. They provide the stability needed to plan ahead, secure finance and negotiate with bigger buyers.

Farming Smarter

Supplier contracts may seem formal or intimidating, but they are simply tools to manage risk and protect hard work. For small-scale farmers, every cent counts. A clear contract helps ensure that money spent on inputs delivers value and supports growth. Farming will always carry risk, but with proper agreements in place, farmers can at least manage the risks that are within their control.

Molisa Cheda is the founder and managing director of Vanguard Legal, which is focused on providing simple and accessible legal support.

Disclaimer: The views expressed in this article are solely those of Molisa Cheda and do not necessarily reflect the views of African Farming or other associated parties.

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