biomass contract farming

8/4/2019 Biomass Contract Farming

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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

Company

Mediator/Facilitator

Farmer

Contract production, organization ,supply of company sapling( with partadvance payment by grower) , extension

and input credit under agreement

Sapling supply,

payment ofcommission per ton

of biomass produced, extension and

sapling distributionservices under

agreementPayment for produce(through bank tofarmer andsupervision underagreement)

INTERMEDIARY / TRIPARTITE MODEL



Title

Contract Farming

Company

Facilitator Facilitator

Farmer

Farmer Farmer

Farmer

Farmer

Farmer

Farmer

Farmer



Flow of Activities

•Land availability

•Water availability

•Soil condition

•Climatic condition

•Social Environment

•Political Environment

Indentifyingsuitable area

•Influential person

•Good relations with farmers

•Networking Capability

•Setting a trial plotAppointingfacilitator

• Giving information about EPPI contract farming program

•Tie up with bank for plantation loan

•Group development facilitation

Conducting

farmers meeting

•supply of company sapling with part advance payment by farmer

•extension and credit services under contract agreement

Contractproduction



Location: Yavatmal, Maharashtra



Land Availability In

Yavatmal

Total Land(2007-08) 1352 thousand hectares

Cultivable Land 74.75 % Cultivated Land 62.42%

Not Cultivated

Land

12. 33%

Unutilized Land 4.72%

Uncultivable Land 2.55 %

Forest Covered 17.98 %

Source : DES-MAH



Taluks wise Land Availability in Yavatmal

Sr. no Taluks Uncultivated

land(hectares)

Total land under

Cultivation

(hectares) 1 Ner 5782 51114

2 Umarkhed 8002 64222

3 Pusad 7625 73069

4 Wani 5101 60855

5 Kalamb 3148 47645

6 Yavatmal 3479 63040 7 Ralegaon 3654 54432

8 Kelapur 4423 50045

9 Zarijamni 5380 43670

10 Digras 3792 38442

11 Ghatnji 5140 59458

12 Darva 4892 60962

13 Mahagaon 3926 65540

14 Maregaon 4419 44435

15 Aarni 1731 59391

16 Babhulgaon 1759 49607

Total Land 69396 878287

Source : DES-MAH



Agro-climatic Condition

Sr. no. Factors Details

1 Land holding Pattern

• Less than 2 hectares• 2-10 hectares

• More than 10 hectares

213000564000

76000

2 Rainfall 800-1500 mm

3. Altitude(From sea Level) 300-500 m

4 Temperature 21-42 с

5 Soil type Black soil , Medium-

Heavy Textured ,

alkaline in reaction

6 Natural habitat Sagwan(Tectona),

Bambu , Baheda(Terminalia bellirica),

Bilwa(Aigle

Marmelos)

7 Cropping Pattern Kharif: cotton,

Soybean , TurRabi: Wheat , Jawar ,



Buy Back Plan

Sr. no Per ton

1 Base Rate/ton Rs. 1500

2 Drip irrigation incentiveper ton Rs. 50

3 Fertilizer and Chemical kit

incentive/ton

Rs. 50

4 MR incentive/ton Rs. 100

5 Total Buy back rate Rs. 1700

Commission provided to Facilitator

per ton

Rs. 50 paise/saplings + Rs. 50/ton

Buy Back Period 4 years

I l i



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 Name:

Contact no:

Date of agreement:

Nominee Name : Address:

Block code no: Registration no:

Farmers code: Soil Type:

Area contracted(Acres): Water resource:

Survey no: Irrigation Type:

Bank Ac. Details

Farmers Signature

Farmer Details



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 clearlystipulated



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.

biomass contract farming

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