Contract farming is an agreement where farmers grow crops for agribusinesses in exchange for inputs and guaranteed prices. The document discusses contract farming models in India historically and currently, focusing on a model for jatropha cultivation. Small farmers can set up nurseries and plant jatropha as an intercrop that provides fuel, biofertilizer, and potential carbon credit income without much ongoing care. Jatropha oil demand is high for biodiesel in Europe and the US, and it can substitute for castor oil.