This note provides guidance on thedesign and implementation of outgrower schemes to achievemutually beneficial outcomes for investors and smallholders.Outgrower schemes have gained prominence as a business modelthat can benefit both smallholders and investors. Suchschemes can improve smallholders’ access to markets,finance, infrastructure, and improved growing techniques;can enhance investors’ access to land, labor, and qualityproduce; and can improve investor-community relations.Associated risks include overdependency, exploitation ofpower differences, entrenchment of inequalities,lower-than-expected production, and side-selling. Achievingthe potential benefits and minimizing the associated risksrequires careful design and implementation.