Model Contracts for Agricultural Investments

This guide explains how model contracts—both generic and nationally tailored—can help governments ensure responsible investment in agriculture. It details how these templates can integrate international standards, prevent problematic omissions, flag risky clauses like stabilization provisions, and promote transparency and legal harmonization.

• Model contracts help governments integrate international best practices and standards into specific agricultural investor-state contracts, translating broad guidance into recommended contractual language to address environmental, social, and economic considerations.
• The use of model contracts streamlines the contracting process and reduces the risk of omitting critical provisions, such as grievance mechanisms, dispute resolution, and protections for local community access to water and resources essential for food security.
• Model contracts can establish 'conditions precedent'—mandatory steps that must be completed before a contract is performed—such as conducting environmental and social impact assessments (ESIAs), climate risk assessments, and consultations based on Free, Prior, and Informed Consent.
• Model contracts can identify and provide alternatives to problematic stabilization clauses, which often 'freeze' legal frameworks or provide compensation for regulatory changes, potentially limiting a government's ability to regulate in the public interest regarding health, safety, and the environment.
• Nationally tailored model contracts help harmonize the rights and obligations of different investors, preventing an 'unlevel playing field' and reducing corruption by ensuring consistency with domestic laws and policies.
• Governments developing nationally tailored model contracts should draw on existing generic templates, consult with diverse stakeholders (including civil society), publish the templates online, and establish high-level institutional arrangements to ensure their use during negotiations.

APA

Maina, N. (2025). Model Contracts for Agricultural Investments. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-04/legal-tools-investment-agriculture-model-contracts.pdf

Chicago

Maina, Nyaguthii. Model Contracts for Agricultural Investments. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-04/legal-tools-investment-agriculture-model-contracts.pdf.

Wikipedia

{{cite report |last1=Maina |first1=Nyaguthii |title=Model Contracts for Agricultural Investments |publisher=International Institute for Sustainable Development |date=April 2025 |url=https://www.iisd.org/system/files/2025-04/legal-tools-investment-agriculture-model-contracts.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maina2025model, author = {Maina, Nyaguthii}, title = {{Model Contracts for Agricultural Investments}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = apr, url = {https://www.iisd.org/system/files/2025-04/legal-tools-investment-agriculture-model-contracts.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }