Over the years, the farming has become a very vital domain. To meet the ever increasing demand and need for agricultural products, farmers are constantly experimenting to develop newer and better farming techniques. Apart from using cash crops like sugarcane, tobacco, cotton and also farming orchards of variety of fruits like apples and oranges, the farmers are also involving their fields in crop rotation. It is needless to mention that agriculture is not only to meet the domestic needs of a country but also to export to other countries.
At large, India being a leading developing country, the pressure on the farmers are huge. The farmers are expected way more than the resources that are provided to them. In such dire conditions, the farmers are left with no choice but to have a massive crop failure or limiting their crop production thus reduced income. So, over the years, there have been various companies who have thought about uplifting the clan of farmers. To do so, these companies have started providing monetary help and also started helping them with advanced technologies to facilitate easy, effective farming. This type of monetary benefit was later on termed as contract farming.
Earlier the farmers did not have any monetary support from external agents during the crop growing or maintaining phase. In the process of contract farming, the companies at the very initial stage, before signing the contract, provide all the necessary resources and external equipment to the farmers. This help the farmers to raise their crop without any worries. In the contract farming, the farmers are also helped with different types of relaxation. If the farmers are forced to face any crop damage or unforeseen crop loss, these relaxations help them cope up with the situation. Moreover, the farmers are not burdened to grow a variety of crops. The farmers have the right to choose the type of crops they wish to grow.
Here in we share with you the details of most important concerns regarding the method of contract farming.
1 ) The availability of land
Though the contract farming assures the farmers of steady income through the signed contracts of the respective crop, yet the agencies never provide the land. The farmers, in present situation, have to constantly negotiate with their land owners so as to get ample amount of land to grow their respective crops. Usually when the farmers attain their piece of land that they will be cultivating, the landowners do not give the land with prior management resources.
From the very initial digging up of irrigation or drainage facilities, the farmer has to take care of everything. The farmer has to ensure the seed availability, proper crop identification. Therefore, this land acquiring business is an extremely costly affair for the farmers. However, in the recent past, the companies have tried to lease away the land to the farmers. But even in the leasing process, the lacunas that the farmers faced with the landowners previously continued with these agencies. Therefore, though contract farming may seem easy, the availability of land is one of the most important concerns regarding the method of contract farming.
2 ) The concept of contract farming should be carefully introduced to the farmers
India being a developing nation, it is highly dependent upon its agricultural sectors for the growth of its economy. We all know that that agriculture In India is very old and follows traditional methods which has its own pros and cons. Owing to this traditional mindset of farmers, it has become constantly difficult to introduce any innovative method of farming. Adding to the mindset, the literacy rate of farmers also make them negligent about the innovative methods.
So, the farmers are usually ignorant and thus do not wish to engage in any written contract when it comes to their one and only one occupation. So, it is extremely essential for the companies to do a proper background check and implement proper steps while introducing the concept to the farmers. They should thoroughly explain to them the pros and cons of the method so that the farmers do not have any worries at a later stage.
3 ) Transparency is very much required while signing contracts
In India literacy rate is a major concern in all sectors. With most of the Indian farmers not having basic education, the contracts are not easily understandable for them. So, most of the farmers have the chance of being cheated by the agencies. Without proper disclosure and discussion, the farmers may be cheated. The terms and condition of the contracts need to be discussed with the farmers and the agency in details.
These are some of the most important concerns regarding the method of contract farming.