
Originally Posted by
KJ2018
FARMING AGREEMENT : A farmer may enter into a written farming agreement in respect of any farming produce .
The minimum period of the farming agreement shall be for one crop season or one production cycle of livestock, as the case may be, and the maximum period shall be five years: ( Farmers may go for agreement of one crop season also)
The parties entering into a farming agreement may identify and require as a condition for the performance of such agreement compliance with mutually acceptable quality, grade and standards of a farming produce.
The price to be paid for the purchase of a farming produce may be determined and mentioned in the farming agreement itself.
The Sponsor may, before accepting the delivery of any farming produce, inspect the quality or any other feature of such produce as specified in the farming agreement, otherwise, he shall be deemed to have inspected the produce and shall have no right to retract from acceptance of such produce at the time of its delivery or thereafter.
The Sponsor shall,—(a) where the farming agreement relates to seed production, make payment of not less than two-third of agreed amount at the time of delivery and the remaining amount after due certification, but not later than thirty days of delivery; ( rumour is being spread among farmers that no payment will be made to farmers}.
Where a farming agreement has been entered into in respect of any farming produce under this Act, such produce shall be exempt from the application of any State Act, by whatever name called, established for the purpose of regulation of sale and purchase of such farming produce. (State regulation on mobility of commodity will not be in practice)
Notwithstanding anything contained in the Essential Commodities Act, 1955 or in any control order issued thereunder or in any other law for the time being in force, any obligation related to stock limit shall not be applicable to such quantities of farming produce as are purchased under a farming agreement entered into in accordance with the provisions of this Act.( Through contract farming any quantity of produce can be produced which will be exempted from ECA 1955)
No farming agreement shall be entered into for the purpose of— (a) any transfer, including sale, lease and mortgage of the land or premises of the farmer; or (b) raising any permanent structure or making any modification on the land or premises of the farmer, unless the Sponsor agrees to remove such structure or to restore the land to its original condition, at his cost, on the conclusion of the agreement or expiry of the agreement period, as the case may be:
A farming agreement may be linked with insurance or credit instrument under any scheme of the Central Government or the State Government or any financial service provider to ensure risk mitigation and flow of credit to farmer or Sponsor or both. ( Farmers may take the benefit of Govt sponsored shemes on cluster basis which is an added adventage)
Save as otherwise provided in this Act, an aggregator or farm service provider may become a party to the farming agreement and in such case, the role and services of such aggregator or farm service provider shall be explicitly mentioned in such farming agreement. ( If farmers have any doubt, in that case FPOs can be promoted and FPO can sign on behalf of farmers)
Explanation.—For the purposes of this section, (i) "aggregator" means any person, including a Farmer Producer Organisation, who acts as an intermediary between a farmer or a group of farmers and a Sponsor and provides aggregation related services to both farmers and Sponsor;(ii) "farm service provider" means any person who provides farm services.
At any time after entering into a farming agreement, the parties to such agreement may, with mutual consent, alter or terminate such agreement for any reasonable cause.
12. (1) A State Government may notify a Registration Authority to provide for electronic registry for that State that provides facilitative framework for registration of farming agreements.
DISPUTE SETTLEMENT : 13. (1) Every farming agreement shall explicitly provide for a conciliation process and formation of a conciliation board consisting of representatives of parties to the agreement: Provided that representation of parties in such conciliation board shall be fair and balanced. ( In Conciliation Board, Farmers representative or FPO representative may be increased).
The above clauses are clear and need to be explained to common farmer.