3 ms·
>The trading firm would then pay the farmer months or years after. What is the incentive here for the farmer though? Why would they go along with this rather t
by aphextron 9y ago
>The trading firm would then pay the farmer months or years after.
What is the incentive here for the farmer though? Why would they go along with this rather than just sell their beans at the market price?
- rhizome 9y agoIt sounds like a variant of sharecropping to me.
- s73v3r_ 9y agoThe incentive is not starving. People stuck in situations like this often had some kind of hardship befall them. Combine that with unscrupulous traders, and you get something like this.
- jamez1 9y agoThey pay them more for waiting, effectively moving the working capital up the supply chain where it accumulates to where it can be used.