Small Farmers Large Field
(SFLF) is a model to help small farmers overcome
disadvantages in the supply chain. SFLF is a concept where small farmers
collectively cultivate a large piece of land.
It aims to address the challenges
faced by small-scale farmers, such as limited resources and low productivity.
By pooling their resources and
efforts, small farmers can benefit from economies of scale and enhance their
productivity and income.
SFLF can involve various forms
of collaboration, such as forming cooperatives or entering into contracts with
corporate bodies.
The model allows small farmers
to benefit from economies of scale by organizing themselves into groups and
synchronizing operations.
Use in Odisha:
The model was piloted in two
villages in Odisha with 112 farmers.
The farmers synchronized
operations such as nursery bed management, transplanting, and harvesting.
The SFLF farmers purchased
inputs and sold paddy as a group to increase their bargaining power.
The pilot study showed that
participating farmers almost doubled their profits.
The farmers also saved time in
joint activities and experienced social harmony and sustainability in their
farming system.
It involves agricultural production on the basis of
an agreement between the buyer and farm producers.
The farmer undertakes to supply agreed quantities
of a crop or livestock product, based on the quality standards and delivery
requirements of the purchaser to deliver at a future date.
In return, the buyer, usually a company, agrees to
buy the product, often at a price that is established in advance.
The company often supports the farmer through,
e.g., supplying inputs, assisting with land preparation, providing production
advice and transporting produce to its premises.
It is known as "out grower scheme"
in Africa.
Regulatory structure on contract farming:
Initially,
contract farming regulated under the Indian Contract Act, 1872.
The
Model APMC (Agricultural Produce Market Committee) Act, 2003 provides specific provisions for
contract farming
E.g.
compulsory registration of contract farming sponsors and dispute
settlement.
In
2004, the MS Swaminathan-headed National Commission on Farmers
(NCF) recommended for a comprehensive code of conduct on contract
farming.
The
National Policy for Farmers 2007, based on the recommendations of NCF, also
encouraged Contract farming.
In
2018, Ministry of Agriculture came out with a draft Model Contract
Farming Act, 2018.
It seeks
to create a regulatory and policy framework for contract farming.
Based
on this draft Model Act, legislatures of states can enact a law on
contract farming
Currently,
contract farming requires registration with the Agricultural
Produce Marketing Committee (APMC) in few states.
Corporate farming refers to the practice of large
corporations or companies engaging in agricultural production on a large scale.
It involves the consolidation of land and resources
under the control of a corporate entity.
Corporate farming often utilizes advanced
technologies, mechanization, and specialized expertise to maximize productivity
and profitability.
It can have both positive and negative impacts,
such as increased efficiency and productivity but also potential concerns
regarding the concentration of power and resources in the hands of a few
corporate entities.