Some large investments have managed to achieve broad-based benefits via such partnerships by formulating innovative schemes for sharing both risks and rewards (Box 9.2). One important condition for success is to adequately share the risks between companies and smallholders depending on the capacity of each party to shoulder them. The higher business risks of this arrangement were addressed through crop insurance, while transactions costs associated with dealing with a large number of farmers were reduced by avoiding the geographical dispersion of outgrowers. This scheme resulted in higher levels of contractual compliance among the outgrowers (FAO, 2013).