System of Farming

System of Farming

• ‘System of farm Organization' denotes a particular method of agriculture and the specific type of ownership of land.

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�DIFFERENT SYSTEMS OF FARMING ��

• (A) Peasant Farming or family farming. 
• (B) Corporate Farming 
• (C) State Farming 
• (D) Collective Farming 
• (E) Co-operative Farming 

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Peasant farming �

• This system of farming refers to the type of organization in which an individual cultivator  is the owner, manager and organizer of the farm.
• He makes decisions and plans for his farm  depending upon his resources which are generally meager in comparison to other systems of  farming.
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Peasant farming �

• The biggest advantages of this system is that the farmer himself is the owner and  therefore to take all sorts of decisions.
• A general weakness of this system is that the resources with the individual are less in comparison to those of the other systems.
• Another difficulty is  because of the law of inheritance, an individual holding goes on reducing as all the members in  the family have equal rights in that land. 

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Corporate/ Capitalistic farming or estate farming �

• Corporate farming is also known as capitalist or estate farming. This type of farming exists in a few countries like U.S.A. and Western Europe.
• Under this system of farming, a corporate or a syndicate is formed for the purpose of cultivation. They manage it in a modem enterprise way with a limited liability.

Corporate/ Capitalistic farming or estate farming �

• Capital requirements are met by one or few persons or even by many; just like a joint stock company,
• In such farms, unit of organization are generally large. On large farms, cultivation is done by improved methods or techniques of production with hired labour.

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Corporate/ Capitalistic farming or estate farming �

• The workers who are hired on these farms are reduced to the status of mere industrial workers and face the problem of capitalistic exploitation.
• In fact, it fulfils the requirements of efficient production and provides scope of large surpluses and expansion. In India, such type of farming was found in the states of Bombay, Madras, and Mysore specifically for the plantation of coffee, tea, rubber and sugarcane.

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State farming

• State farming, as the name indicate, is managed by the government.
• Suratgarh farm in Rajasthan and state  farm at Bahraich in Uttar Pradesh are some of the examples of this system. �

State farming

• But such farms are  not many and they are generally attached either to some institution (SFCI) or they themselves  are institutions for a particular work.
• Supervision is done by the farm manager or farm incharge who in turn is a government official. All the labourers are hired on daily or monthly basis and  they have no right in deciding farm policy.

State farming

• Farm policy is usually planned at the top whereas farming is such a profession which  requires immediate and at the spot decision. There is no dearth of resources at such farms but  sometimes it so happens that they are not available in time and utilized fully.  

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Collective fanning �

• The name collective farming implies the collective management of land wherein large  number of families or villagers residing in the same village pool their resources, e.g. land  livestock machinery, etc.
• A general body having highest power is formed which manages the  farm. These resources then do not belong to any family or farmer but to the society or the  collective.
• Farming is done  generally on large scale therefore is mostly mechanized. This system is not prevalent in India  but common in communistic countries of the world. 

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 Contract farming�

• Here land is taken on long time lease base from individual owners.
• Land is remained under  ownership of individuals but they have no role to play in farm policy.
• They are paid rental value  of land.
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Contract farming�

• It is a good system in developed countries where holdings are large.
• But in India 75%  farmers are small and marginal and if they leased out their land, they will be forced to migrate to  cities in search of jobs. In long term , there are chances of landlessness also.

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Co-operative farming

• Co-operative farming denotes a system of farming in which all agricultural operations are carried on jointly by farmers on voluntary basis.
• In this type of farming, every individual farmer/peasant retains one's right on land.
• For the sake of cultivation, the land is pooled and treated as one unit.

Co-operative farming

• Thus, it is cultivated jointly under the direction of an elected society. After making certain deductions, profit earned by the society is distributed among its members according to one's share.
• The rest of the profit is distributed in proportion to the wages earned by them.

Classification of Co-operative farming

• (a) Co-operative Joint Farming
• (b) Co-operative Collective Farming
• (c) Co-operative Better Farming and
• (d) Co-operative Tenant Farming.

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Factors affecting the system of farming �

• 1. Size of land holdings  
• If the size of holding is such that it provides enough income to meet the requirements of  the farmer and his family and also provide enough work for them, the peasant farming may be  preferred.
• But in the case of very small size of holdings, it may be better to pool the land and  work together in the form of a cooperative society or collective farming.

Factors affecting the system of farming

2. Volume of business 

Collective or cooperative system of farming may prove better if the  individual farms do not provide a desirable volume of business. 

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Factors affecting the system of farming

3. Availability and use of resources 

• Persons who have large amount of capital may adopt capitalistic system  of farming making use of capital intensive practices of production.

Factors affecting the system of farming

4. Availing of facilities 

• Some facilities such as credit facility, marketing facilities which individual farmers require  but cannot avail of due to the small size of business, may be availed of by adopting a specific  system of farming like cooperative farming. 

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