Corporate farming

Submitted By:
Submitted To:
Shatakshi Jha PROMIT MANDAL(2K20/A14/42)
Department of Electrical PRIYANSHU KUMAR(2K20/A14/41)
 Corporate farming
Corporate farming is a term that describes the business of
agriculture, specifically, what is seen by some as the practices
of would-be mega corporations involved in food production on a
very large scale.

This is a system for the production and supply of agricultural /

horticultural produce under forward contracts between
producer / supplier and buyers.

Essential to this is the commitment of the producer/seller to

provide an agricultural/horticultural commodity of a certain
type, at a specified time and a price and in the quantity and
quality required by a known and committed buyer.
INITIATIVE OF CORPORATE FARMING
National Agricultural Policy (NAP) of Govt. of India
announced in 2000 that “Private sector participation
in Agriculture shall be promoted through Contract
Farming and Land-leasing arrangements (Corporate
Farming) to allow accelerated technology transfer,
capital flow and assured markets for crop production.
REASONS FOR CORPORATE FARMING
• Consolidation of small farm lands into larger land
holdings
• Increase in agricultural productivity
• Introduction of value added products
• The farmer/producer will be required to plant
contractor’s crop on his land, harvest and deliver a
quantum of produce (based on anticipated yield) to the
contractor.
• He shall provide land and labor necessary for this. The
contractor shall supply all required inputs for the
production of the said crop
FARMS + CORPORATE A NEW SUPPLY CHAIN IN
INDIA

• Collaborative partner ship

• Oilseeds , cotton and horticulture
• new agri business
• Knowledge intensive farming
• Better solutions for farm related problems
• More opportunities
 WHAT IS FAMILY FARMING ?

A family farm is a farm owned and operated by a family,

and passed down from generation to generation. It is the
basic unit of the mostly agricultural economy of much of
human history and continues to be so in developing nations
.
Many remember the years when farming was a way of
life.  When you grew all your own food...eggs, pork, beef,
poultry, gardens full of bountiful vegetables.

 You didn't have to plant thousands of acres to make a

living.

In developed countries the family farm is viewed

sentimentally, as a lifestyle to be preserved for tradition's
sake, or as a birthright.
W HY I S THE FAMI LY FAR M DI SAP PEAR I NG ?

 Many farmers feel in the plans either by the government or by big corporations,  If
they run most of the farmers off of the farms, big corporations can take control of
agriculture completely,  thereby eventually being able to set their own price for
agriculture products.

 Today's prices are driving farmers out of business

 How many products sold in the world today has someone else setting the price the
producer receives for it?  A farmer can not say I want $2.50 per bushel for corn, as
that is what it cost me to raise it.  Someone else sets a price, and there's nothing a
farmer can do about it.  Someone else controls their destiny.  No matter how hard
they work, someone else controls the life of a farmer.
WHY ARE FAMILY FARMS IMPORTANT?

 In addition to producing fresh, nutritious, high-quality foods, small

family farms provide a wealth of benefits for their local communities and
regions.

Perhaps most importantly, family farmers serve as responsible stewards

of the land. Unlike industrial agriculture operations, which pollute
communities with chemical pesticides, noxious fumes and excess manure,
small family farmers live on or near their farms and strive to preserve the
surrounding environment for future generations. Since these farmers have
a vested interest in their communities, they are more likely to use
sustainable farming techniques to protect natural resources and human
health.

The existence of family farms also guarantees the preservation of green

space within the community. Unfortunately, once a family farm is forced
out of business, the farmland is often sold for development, and the
quality land and soil for farming are lost.
 Benefits of Corporate Farming

 This is the way to keep up with population growth, and to make inroads into
feeding billions of people to developed nation standards—this is the only way to
feed the world.

 Indeed, rapid technological development and large-scale global production

management are responsible for an unprecedented abundance of inexpensive,
widely available, attractive, "safe" food.

 By lowering the cost of raw food inputs, creating sophisticated long-distance

distribution networks, producing processed convenience foods, and making food
available year-round in vastly stocked supermarkets, corporate farming has
presented consumers in the wealthiest regions of the world with an immense
variety of food, at relatively low cost. Today, in North America, only about 10%
of average income is spent on food. By this measure, provided these methods
are sustainable, corporate farming would appear to be a tremendous success.
Benefits of Corporate Farming

 Increases out put

 Reduces fragmentation
 Increases export performance
 Technology

Limitations of Corporate Farming

 It makes farmers landless
 Undermines local production
 Failure of corporate farming in many
countries
Few Cases Of Corpotate farming in India
Company Area/region and
crops

1, IEEFL, Pune Maharashtra,

(subsidiary of the Tamilnadu, and
Ion Exchange Goa; Plantations
India set up in mainly fruit trees
1995)

2. Jamnagar Gujarat, and

Farms Pvt. Ltd.- a Punjab;
subsidiary of Agroforestry and
Reliance horticultural crops
Industries
(Mukesh Ambani
group)

3. Anil Dhirubhai Punjab; Fruits and

Ambani Group vegetables
(Reliance)

4. Field Fresh an Punjab; fresh

equal partnership fruits and
venture between vegetables
Bharti Enterprises
(Airtel group) and
Rothschild

5. Vimal Dairy Narmada canal

with a capacity to area in north
process 2.5 lakh Gujarat; milk for
litres of milk ( a captive
part of the Rs. 900 consumption
crore Vimal
Group),
 Pepsico
 Pepsi's tomato farming project was primarily responsible for

increasing India's tomato production.

 Production increased from 4.24 million tonnes in 1991-92 to 5.44

million tones in 1995-96 due to the use of high yield seeds.

 Pepsi offered its contract farmers advanced equipment such as

transplanters and seeding machines to help them carry out their

task efficiently and speedily.

 Contract farming has been encouraged by Pepsi.

 REASON FOR POOR PERFORMANCE IN
CORPORATE FARMING

• Unplanned setup
• Malpractices
• Lack of initiative by members, only govt. initiative is
observed
• Less no. of regulated markets
• Competition from credit societies , middlemen etc.
• Lack of co-ordination
• Lack of audit & supervision
• Illiterate farmers & less marketable surplus
• Lack of warehousing & transport facilities
• Defective loan policies
• Untrained persons
MEASURES FOR IMPROVEMENT :
• Proper storage facilities
• Grading & standardization
• Large area of operation
• Bring down cost of management
• Specialized knowledge & techniques
• Better co-ordination b/w credit societies &
marketing societies
• Trained & experienced staff
 CONCLUSION

Corporate farming is a term that describes the business of agriculture,

specifically, what is seen by some as the practices of would-be mega
corporations involved in food production on a very large scale.
A family farm is a farm owned and operated by a family, and passed down
from generation to generation. It is the basic unit of the mostly agricultural
economy of much of human history and continues to be so in
developing nations.
One major difference between independent farming and corporate farming
is that a corporate farmer is usually a contracted employee, rather than the
owner of the farm.
However, ownership itself does not mean independence. An owner-operated
farm today faces many constraints that are completely out of the owner's
control.
Most of these can be seen in light of increasing concentration of ownership,
not only of farms, but of the equipment and inputs necessary to farm, and
the available sales channels.