The Fair Price Research programme is focused on the methodology how to calculate fair prices for smallholder farms. The methodology developed takes as point of departure that also the small farmer must receive a Living Income for his/her work, in line with the UN Declaration of Human Rights. To ensure the peasant of a decent income, prices received by the farmers appear to be a major problem. Therefore there was a demand for the development of a methodology to calculate the price the farmer should receive for his/her main products.

The conceptual step from Living Income to a Fair Price for agricultural products has so far been taken by few.  InfoBridge has been among the first in the development of a methodology to calculate a Fair Price for agricultural products in order to enable the producer to earn a Living Income. Research in the field of Fair Prices and Fair Wages has started with a publication ‘Fair Prices and Wages’ about artisans in India in ‘Economic and Political Weekly’ in 2004. The methodology used in that article has been further developed and applied to the case of small farmers. Currently InfoBridge is advising SOMO on the calculation of fair prices for rice growers in Cambodia.

This methodology is the so-called ‘Living Income / Fair Price approach’. This methodology has been further explained and developed in several papers. A book will be published shortly about the Living Income / Fair Price approach. Besides an explanation of the approach the book will contain case-studies and analyses what consequences the introduction of fair prices will have on different groups of the population. It will provide new insights on how to combine economic theory and ethics, and how to formulate policies to combat the roots of poverty.

Coordinator Fair Price Research: Ruud Bronkhorst, This email address is being protected from spambots. You need JavaScript enabled to view it. / This email address is being protected from spambots. You need JavaScript enabled to view it..