Chapter II
LINKAGE TYPES, CONTRACT AND PROJECT
Article 4. Linkage types
1. Linkage from supply of materials and other inputs, production, harvesting, preparation or processing to consumption of agricultural products.
2. Linkage from supply of materials and other inputs to consumption of agricultural products.
3. Linkage from production and harvesting to consumption of agricultural products.
4. Linkage from supply of materials and other inputs, production and harvesting to consumption of agricultural products.
5. Linkage from production, harvesting, preparation or processing to consumption of agricultural products.
6. Linkage from supply of materials and other inputs, preparation or processing to consumption of agricultural products.
7. Linkage from preparation or processing to consumption of agricultural products.
Article 5. A contract for linkage
A linkage contract is entered into between the participants in a linkage in the principle of voluntariness with the aims of carrying out one of the linkage types specified in Article 4 herein.
Article 6. Linkage project
1. A linkage project is jointly formulated by an enterprise or cooperative and participants in a linkage for carrying out the investment linkage according to one of the types specified in Article 4 herein.
2. Participants in a linkage shall formulate the linkage project to use as the basis for receiving incentives or subsidies as prescribed in Article 8 and Point a Clause 1 Article 9 herein. In case where no application for incentives is submitted, only the proposal for subsidies for the linkage is prepared.
3. Linkage leader: An enterprise or a cooperative shall acts as a linkage leader if it enters into a contract for direct linkage with a representative of a household business or a farmer. If a linkage contract is entered into between enterprises and/or cooperatives themselves, the linkage leader shall be selected by the parties.
4. The linkage leader shall prepare an application for subsidies for the linkage. In case of compulsory formulation of linkage project, the linkage leader shall be the investor of such linkage project.
5. Apart from the contents agreed upon between the participants in a linkage, the linkage project must include one of the following contents:
a) The design for paddy field improvement, investment and construction, or expansion of a concentrated crop-producing area;
b) Investment and development of infrastructural facilities serving production, harvesting, preparation, storage and consumption of agricultural products;
c) Contribution of funds, property, land-use rights, production process or technology.
6. Procedures for formulation, appraisal and approval for a linkage project shall conform to regulations in Article 12 herein.