Question

In agricultural marketing, a 'forward contract' between a farmer and a buyer most accurately refers to which of the following arrangements?

Q: Answer-In agricultural marketing, a 'forward contract' between a farmer and a buyer most accurately refers...

A forward contract in agricultural marketing is an agreement entered into before sowing or before harvest between the farmer and buyer to transact at a pre-agreed price at a future date, helping reduce price-risk for both parties.

A Selling the produce only after it has been fully harvested

B Buying agricultural inputs in advance, before the sowing season

C An agreement made before sowing to sell at a pre-decided price later

D Signing an agreement purely for crop insurance coverage

E A contract that applies only after the crop has spoiled

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In agricultural marketing, a 'forward contract' between a farmer and a buyer most accurately refers to which of the following arrangements?

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