Contract farming – precision farming – corporate farming – organic farming.

Contract farming can be defined as agricultural production carried out according to an agreement between a buyer and farmers, which establishes conditions for the production and marketing of a farm product or products. Typically, the farmer agrees to provide agreed quantities of a specific agricultural product. Contract farming is an indicator of the process of globalisation of agriculture, or the incorporation of agriculture into the larger global market – a process that has had direct effects on farmers and rural society. For instance, in some regions such as Punjab and Karnataka, farmers enter into contracts with multinational companies (such as PepsiCo) to grow certain crops (such as tomatoes and potatoes), which the companies then buy from them for processing or export. In such ‘contract farming’ systems, the company identifies the crop to be grown, provides the seeds and other inputs, as well as the knowhow and often also the working capital. In return, the farmer is assured of a market because the company guarantees that it will purchase the produce at a predetermined fixed price. Contract farming is very common now in the production of specialised items such as cut flowers, fruits such as grapes, figs and pomegranates, cotton, and oilseeds. While contract farming appears to provide financial security to farmers, it can also lead to greater insecurity as farmers become dependent on these companies for their livelihoods. Contract farming of export-oriented products such as flowers and gherkins also means that agricultural land is diverted away from food grain production. Contract farming has sociological significance in that it disengages many people from the production process and makes their own indigenous knowledge of agriculture irrelevant. In addition, contract farming caters primarily to the production of elite items, and because it usually requires high doses of fertilisers and pesticides, it is often not ecologically sustainable
Precision agriculture  is a farming management concept based on observing, measuring and responding to inter and intra-field variability in crops. The goal of precision agriculture research is to define a decision support system (DSS) for whole farm management with the goal of optimizing returns on inputs while preserving resources.Precision agriculture aims to optimize field-level management with regard to:

  • crop science: by matching farming practices more closely to crop needs (e.g. fertilizer inputs);
  • environmental protection: by reducing environmental risks and footprint of farming (e.g. limiting leaching of nitrogen);
  • economics: by boosting competitiveness through more efficient practices (e.g. improved management of fertilizer usage and other inputs).

Precision agriculture also provides farmers with a wealth of information to:

  • build up a record of their farm
  • improve decision-making
  • foster greater traceability
  • enhance marketing of farm products
  • improve lease arrangements and relationship with landlords
  • enhance the inherent quality of farm products (e.g. protein level in bread-flour wheat)

Corporate farming is the practice of large-scale agriculture on farms owned or greatly influenced by large companies. This includes corporate ownership of farms and selling of agricultural products, as well as the roles of these companies in influencing agricultural education, research, and public policy through funding initiatives and lobbying efforts.

Since the new economic policy has already made significant progress in the trade and industrial sectors, the focus is now shifting towards bringing about structural reforms in other sectors especially agriculture in terms of mode of organisation of production. This is being attempted in order to bring in better efficiency of input and output markets and promote growth performance of the sector ultimately resulting in rural poverty reduction in India. Though India economy has grown at a high rate (6%) during the last decade, agricultural growth rates have lagged far behind (1-2%). Additionally, the agrarian distress and ecological crisis in the largely small farmer dominated agrarian economy has made matters worse in the presence of globalised and liberalised agricultural markets. The agricultural reforms are being undertaken with primacy given to public-private partnership and a significant role being assigned to private corporate sector in rural development and poverty reduction through trickle down of growth.

Corporate farming is one such initiative attempted in many Indian states alongside contract farming. Corporate farming refers to direct ownership or leasing in of farmland by business organisations in order to produce for their captive processing requirements or for the open market. When it is done for captive purposes, it is referred to as captive farming as well, though most of the time, the two terms are interchangeably used. Though, at present, corporate farming is not allowed in India, there have been loud voices in the recent years to get the legal constraint removed so that agribusiness firms could acquire and cultivate land for their raw material requirements. The most vocal demand has been that by the corporate businesses and business associations.

Organic farming also known as ecological agriculture or biodynamic agriculture, works in harmony with nature i.e. the agricultural practices followed in organic agriculture do not cause any harm to the environment. Due to eco-friendly nature of the organic farming it is considered as an viable alternative in comparison to chemical based farming, in a scenario where excessive use of chemical based fertilizers and pesticides have raised the concerns for ecotoxicity and health hazards. Nutrient management in organic agriculture is based on agronomic practices like crop rotations, soil fertility building via nitrogen and nutrient recycling using organic material like crop residues, farmyard manure and minimization of use of chemical based fertilizers.Control of pest populations in organic farming relies on use of resistant crops, crop rotation, increase in predators for natural control of the pests and increase in genetic diversity along with the judicious use of water resources and animal husbandry.

While extensive use of pesticides and fertilisers increase crop production, they also create the burning issues relevant to food quality. That’s why, the modern world has begun to focus on food quality not quantity, and is shifting towards organic agriculture.

Organic agriculture is a holistic production management system which promotes and improves health of agro ecosystem including biodiversity, biological cycles, and soil biological activity.Organic fertilisers include animal and green manure, fish and bone meal, and compost.

And the organic pest management focuses on prevention through such method as: growing resistant varieties of crops and in the proper season of the variety; improving soil health to resist soil pathogens and promote plant growth; rotating crops; encouraging natural biological agents for control of disease, insects and weeds; using physical barriers for protection from insects, birds and animals; modifying habitat to encourage pollinators and natural enemies of pests etc.

Today, insect pest management in organic agriculture involves the adoption of scientifically based and ecologically sound strategies as specified by the international and national organic production standards. These include a ban on synthetic insecticides and, more recently, on growing curbs on genetically modified organisms (GMOs).

The General Assembly of the International Federation of Organic Agriculture Movements has approved four principles of organic agriculture: health, ecology, fairness and care.

Principles apply to agriculture in the broadest sense, including the way people tend soils, water, plants and animals in order to produce, prepare and distribute goods. They are concerned the way people interact with living landscapes, relate to one another and shape the legacy of future generations. Each principle is followed by an action oriented explanation.

Various techniques are utilised for farming organically, some extensively, others rarely. Biodynamic farming stress biological methods in regard to humane treatment of animals, food quality and soil health (such as green manures, cover crops and composting).

The other method is natural farming. There is no water, no pesticide, no fertiliser and no herbicide utilisation except seed sowing. It is also known as ecological farming solely established by a Japanese farmer. Another farming practice is principally ‘bio intensive,’ which uses low energy input, fosters healthy soils, and conserves space, while maximising yields and increasing sustainability. Some others are permaculture, no-tilling and holistic management etc.

The issue has also to be seen in the context of gross domestic product (GDP) which is supposed to measure the wealth of nations and has emerged as the dominant concept in our times. However, economic growth hides the poverty it creates through the destruction of nature, which, in turn, tends to deprive communities of the capacity to provide livelihood for themselves.

Organic products are usually more expensive than ‘conventional’ agricultural products because there is an ‘extra cost’, called ‘organic premium’ to be paid in addition to the ‘reference price’. Some of the key factors that make organic products expensive include health and nutritional concerns, superior taste, food-safety concerns, and environmental friendliness. Consumer’s willingness to pay more represents a price premium for environmental quality and health.

However, when a farmer starts organic farming, the land, soil and the environment is not as good as it should be. With the organic farming practices over time, the land and environment becomes poison-free and totally healthy for growing of healthy crops, and farmer also acquires experience of organic farming.

So, on the start of almost fifth year, organic farming gives outcomes comparable with modern synthetic agricultural practices. If we critically compare the inputs, we come to know, as no synthetic fertiliser and pesticide is added, the organic farming requires less cost. On the other hand, due to its premium quality, it is sold at 3-4 times higher prices than other produces and farmers earn 3-4 times more profit.

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