Copra warns against unverified crop deals: Don't let bad contracts eat your profits

Dodoma. The Cereals and Other Produce Regulatory Authority (Copra) has warned grain and other produce farmers against entering into farming contracts with unregistered institutions or agricultural stakeholders, noting that such arrangements cause farmers to incur heavy losses by selling produce at throwaway prices.

Copra said farmers participating in contract farming should earn at least 80 percent of prevailing market crop prices, yet many fall short owing to signing agreements without verifying the registration and legality of the partner institutions involved.

The warning was issued on Monday, August 3, 2026, by Copra’s contract farming coordinator, Ms Rehema Msauge, during a contract farming training in Dodoma.

She stated that any stakeholder intending to engage in contract farming must fulfill specific criteria enabling support across the production value chain to safeguard farmers' interests and ensure successful implementation.

“There must be mutual empowerment between farmers and traders regarding inputs, fertilisers, extension services, processing, and crop transport. However, we have found some farmers suffering due to unvetted agreements made without checking these key criteria,” said Ms Msauge.

Furthermore, she said stakeholders should be able to support land preparation, input provision, harvesting, processing, and the securing of reliable markets through approved buyers.

Norges Vel Organisation manager, Ms Sesilia Jeremia, recommended that agricultural contracts include a farmer insurance clause to cushion farmers against potential losses if crops fail due to climate change or suffer pest damage in the field.

She noted that this step will prevent farmers from carrying the burden of debts arising from contracts signed with stakeholders when hit by disasters.

For his part, Copra legal officer, Mr Daniel Mwamlima, urged farmers to respect contract terms to avoid disputes during execution.

Mr Mwamlima stressed that adherence to agreements builds trust, fosters cooperation, and drives contract farming success.