Contract Farming For Biomass Plantation

By Praful Bhoyar prafulbhoyar07@mail.com

Content
Contract farming model Flow of Activities Location Agro-climatic condition Cost of production per acres Buyback plan Components in contract farming Conclusion

Contract Farming Model

INTERMEDIARY / TRIPARTITE MODEL Company Sapling supply, payment of commission per ton of biomass produced , extension and sapling distribution services under agreement

Payment for produce (through bank to farmer and supervision under agreement)

Farmer

Mediator/ Facilitator

Contract production, organization , supply of company sapling( with part advance payment by grower) , extension and input credit under agreement

Title Contract Farming

Company

Facilitator
Farmer

Facilitator
Farmer

Farmer

Farmer

Farmer

Farmer Farmer Farmer

Flow of Activities
Indentifying suitable area Appointing facilitator
Land availability Water availability Soil condition Climatic condition Social Environment Political Environment

Influential person Good relations with farmers Networking Capability Setting a trial plot

Conducting farmers meeting

Contract production

Giving information about EPPI contract farming program Tie up with bank for plantation loan Group development facilitation

supply of company sapling with part advance payment by farmer extension and credit services under contract agreement

Location: Yavatmal, Maharashtra

Land Availability In Yavatmal

Total Land(2007-08)
Cultivable Land

1352 thousand hectares

74.75 % Cultivated Land Not Cultivated Land 62.42% 12. 33%

Unutilized Land Uncultivable Land Forest Covered

4.72% 2.55 % 17.98 % Source : DES-MAH

Taluks wise Land Availability in Yavatmal

Sr. no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Taluks Ner Umarkhed Pusad Wani Kalamb Yavatmal Ralegaon Kelapur Zarijamni Digras Ghatnji Darva Mahagaon Maregaon Aarni Babhulgaon Total Land Uncultivated land(hectares) 5782 8002 7625 5101 3148 3479 3654 4423 5380 3792 5140 4892 3926 4419 1731 1759 69396 Total land under Cultivation (hectares) 51114 64222 73069 60855 47645 63040 54432 50045 43670 38442 59458 60962 65540 44435 59391 49607 878287

Source : DES-MAH

Agro-climatic Condition
Sr. no. Factors 1 Land holding Pattern Less than 2 hectares 2-10 hectares More than 10 hectares Rainfall Altitude(From sea Level) Temperature Soil type Details 213000 564000 76000 800-1500 mm 300-500 m 21-42 Black soil , MediumHeavy Textured , alkaline in reaction Sagwan(Tectona), Bambu , Baheda (Terminalia bellirica), Bilwa(Aigle Marmelos) Kharif: cotton, Soybean , Tur Rabi: Wheat , Jawar ,

2 3. 4 5

Natural habitat

Cropping Pattern

Buy Back Plan

Buy Back Period 4 years

Sr. no
1 2 3 4 5 Base Rate/ton Drip irrigation incentive per ton Fertilizer and Chemical kit incentive/ton MR incentive/ton Total Buy back rate

Per ton
Rs. 1500 Rs. 50 Rs. 50 Rs. 100 Rs. 1700 Rs. 50 paise/saplings + Rs. 50/ton

Commission provided to Facilitator per ton

Important elements in Contract Farming

Criteria for grower selection Registration of growers and maintenance of records Input supply and loan recovery Extension services Payment modalities Obligations of involved parties

Criteria for grower selection

Land availability Location and condition Agricultural knowledge and experience Willingness to learn

Registration of growers and maintanance of record

Farmer Details Farmer Name: Contact no: Nominee Name : Block code no: Date of agreement: Address: Registration no:

Farmers code: Area contracted(Acres):

Survey no: Bank Ac. Details Farmers Signature

Soil Type: Water resource:

Irrigation Type:

Contracts
Should be transparent and comprehensive Incorporating as a minimum personal details of the individual farmer
Identification/registration number Area contracted Period of agreement Input costs and repayment modalities Extension provision Obligations/responsibilities of the involved parties

Must be understood by farmers Company should keep a record of all contracts, if only for monitoring purposes

Extension Services
There may be a need for companies to perform a full training and extension needs analysis Provision of extension services is ideally linked closely to production cycle

Input Supply and Loan Recovery

Conditions applying to the provision of inputs, Range of inputs made available Cost Interest charged on loan Repayment modalities must be clearly stipulated

Payment Modalities
Will be as prompt as possible through bank, preferably when produce changes hands Transaction properly recorded, indicating corresponding weights and prices, total value of the delivery, and any deductions for inputs or, if applicable for other services provided

Conclusion
Model suggested above provides shared responsibility among company, Facilitator and farmer which results in better efficiency.