CORPORATE FARMING

‘Corporate farming’ is a term that describes the business of agriculture, the practice of mega-corporations involved in good production on a very large scale.

It includes not only the farm but the entire farming process from seed supply, agrichemicals, food processing, machinery, storage, transport, distribution, marketing, advertising and retail sales.

The term Corporate Farming also includes the influence of corporations on education, research and public policy, through their education funding and government lobbying efforts.

Corporate farming is used synonymously with ‘agribusiness’ and it is seen as a destroyer of the family farm.

The huge opportunities for profit have driven Indian corporations to expanding into agriculture and retail sector.

This is a cause of concern because this is happening without a proper regulatory framework and a lack of comprehensive understanding of the impact on agriculture. Agricultural land use laws are being changed to facilitate the entry and growth of big corporate agencies into agriculture.

Examples:

Bharti Enterprises launched ‘Field Fresh Foods’ in collaboration with UK Brand EL-RO Holdings, an investment arm of Rothschild family. It has put over 4000 acres of cropland under cultivation in Punjab.

Tata Chemicals Agri Business – ‘Khet-Se Agri Produce’ is expanding into bio diesel, fresh fruits and vegetable production and distribution.

Reliance Retail Ltd. (RRL) ‘Farm to Fork’ strategy – its supply chain would trade in the open market as well as serve its ‘Reliance Fresh’ outlets. Reliance Retail has taken 3000 acres of orchards on lease from Himachal Pradesh Horticultural Produce Marketing and Processing Corporation (HPMC)

Thus, corporate framing will control and drive every aspect of agricultural production to distribution to final sale.

The Amendment of Agricultural Produce Marketing Committee Act has paved the way for contract framing in a number of states. Under the model law, a farmer can lease his land for a minimum of eleven months to maximum of thirty months.

Corporate farmers are demanding an amendment in the Revenue Act so that they can lease the land for upto 10 years.

Under contract farming the farmer is supplied seeds and other ingredients by the company and the contractor buys the entire farm produce as per fixed price.

Corporate farming is unfavorable because

-          Change of production in agriculture

-          Producer – owner reduced to worker in corporate farm

-          Agricultural production will be for market and not for need/consumption

-          Replacement of conventional stable production system

-          Transforming food grains-oriented agriculture to cash crop-oriented agriculture i.e. producing crops that are in demand in the local urban market or international market.