Deal #10036 Version 94855 Version 95816
Nature of the deal
Lease
Lease, Pure contract farming
Comment on nature of the deal
The deal is organised as a 2+3 or 1+4 arrangement, according to landowners’ (villagers’) preferences. A 2+3 arrangement is the Laotian term for contract farming, where 2 parts are provided by the farmer (land and labor) and 3 parts are provided by the company (capital, technical knowledge and market). A 1+4 arrangement corresponds to a simple land lease, which is the same as the 2+3 arrangement but labor is organized by the company as well.
The deal is organised as a 2+3 or 1+4 arrangement, according to landowners’ (villagers’) preferences. A 2+3 arrangement is the Laotian term for contract farming, where 2 parts are provided by the farmer (land and labor) and 3 parts are provided by the company (capital, technical knowledge and market). A 1+4 arrangement corresponds to a simple land lease, which is the same as the 2+3 arrangement but labor is organized by the company as well.