Ownership-Integrated Supply Chain Farms Key Characteristics Supply chain is partially owned and controlled by farmers who supply inputs and share in profits and losses beyond the farm gate. Supply chain farms self-select based on relationships, interest, and capital. Farmer relies more on supply chain for genetics, other key aspects of inputs, production processes to be used, and criteria for pricing and delivery of the product. Farmer gains a preferred position for supply chain processors and accessing proprietary information, research and education, and management strategies targeted toward unique problems of the supply chain. Competition exists primarily among supply chains.
Farms shifts some risks to the supply chain.
Tax incentives, business development and technology assistance, entrepreneurial mentoring, fund raising and seed capital funds to assist in organizing supply chain networks and alliances. Assistance for evaluating contracts and contract policies similar to those needed of other supply chain farms under contract. Farmers still have an interest in developing formal or informal associations to iron out management issues. Avoid arbitrary open market protection policies. Consumer versus commodity marketing focus.