Cooperative Farming

Booklet No. 72 Agricultural Cooperation: ACS-10

Contents Preface I. Introduction II. Meaning and Objectives III. Chief Characteristics IV. Co-operative Farming in India V. Classification VI. Joint Farming and Collective Farming: Comparison VII. Reasons for Co-operative Farming VIII. Reasons Against Co-operative Farming IX. Co-operative Farming: An Analysis X. Suggestions for Improvement XI. Conclusion Preface Agriculture is the most backward enterprise in India because of the tiny holdings, traditional farming, improper utilization of human and other resources and lack of technical knowledge. A well planned and judicious combination of all these factors can be created by introducing co-operative farming. This booklet provides all the necessary information about cooperative farming: meaning, objectives, characteristics, advantages, evaluation, failure, and suggestions for improvement of co-operative farming. Dr. K. T. Chandy, Agriculture & Environment Education. I. Introduction Agriculture occupies a position of great importance in the national economy of India. It provides employment to 75 % of our population, contributes about 40 % of our national wealth and accounts for about 40 % of the total export earning. So in a country like India prosperity of community hinges on the progress and prosperity of agriculture. Unfortunately it is the most backward industry or a business here. This is mainly because of the tiny holdings. Such small units of cultivation reflects serious imbalance in the man-land ratio which is the primary cause of setting in traditionalism in farming, misallocation and improper utilization of human and other resources, low and marginal productivity of labour and land, small savings and subsistence oriented character of farm organization and management. The resources necessary for agricultural production are land, labour, farming equipment, livestock, irrigation, seeds, manures, finance, storage facilities, transport, marketing and technical knowledge. A well planned and judicious combination of all these factors could lead to economic cultivation. This situation can be created by introducing co-operative farming which would ensure effective measures for expansion of production, improvement of techniques, proper utilization of land and most desirable allocation of the man power. II. Meaning and Objectives Co-operative farming can be defined as a voluntary form of organization in which farmers and landless cultivators pool their uneconomic holdings and other resources with a view

to facilitate the rational .use of resources and, economies of scale, and adopt scientific methods of cultivation. It is based on the ideas of self and mutual aid. It is primarily intended to benefit the small farmers and landless labourers. According to the Planning Commission, "Co-operative farming necessarily implies pooling land and its joint management". The pooling land can be adopted by any of the following methods either by itself or in combination with some other form. 1. The ownership of land may be retained by individual but the land may be managed as one unit, the owners being compensated through some form of ownership dividend; or 2. The land may be leased to the co-operative society for a period, the owner being paid agreed rent or rent prescribed by law; or 3. Ownership may be transferred to the co-operative society but shares representing the value of land may be given to individuals. The main objectives of a co-operative farming society are enumerated here: 1. Secure increased agricultural production through more intensive programme of land improvement and agriculture. 2. Undertake improved techniques in agriculture and agro-based industries, so as to make proper utilization of land, man power, cattle, knowledge and skill of farmers. 2. Suitable and scientific crop planning and rotation of crops. 4. Secure increased and regular employment for the members. 5. Provide solution to the pressing agrarian problems from which the country is suffering. III. Chief Characteristics The main features of co-operative farming are the following: 1. Members pool their land into a single unit. 2. They also pool their man-power and other resources. 3. Ownership of land continues to be with the individual members. 4. The society is formed voluntarily and is run on co-principles. 5. Members receive remuneration according to the work done and the land contributed for joint cultivation. 6. Society lays down the programme for farm operations and each member does his assigned work according to the scheme. 7. Management of these resources is conducted jointly. . 8. Net profits are utilized for payment of bonus. 9. Members have the option to leave the organization. The most important aim of co-operative farming society is to increase production and employment. For this purpose the society undertakes: 1. intensive programme of land improvement and irrigation; 2. improved techniques in agriculture and agro-industries; and 3. scientific method of cultivation, crop planning and rotation. It is felt that the most appropriate objective of co- operative farming would be that of making greater economic use of pooled resources of land, labour and farm re- sources. Thus co-operative farming has economic as well as special appeal and would provide solution to some of our agrarian problems.

IV. Co-operative Farming in India Co-operative farming in India is not a new concept. The "Phud" system of Kolahpur and "Gongchi" system in Andhra Pradesh represented two traditional form of co- operative farming. From time immemorial farmers have helped one another with improved seeds, implements and mutual aid at the time of harvesting, weeding and other farm operations was not uncommon in India. In western parts of Kolahpur district of Maharashtra, joint farming has been widely practiced with regard to sugarcane for over 100 years at least. In certain areas of Anantpur district of Andhra Pradesh, joint cultivation has been practiced on traditional lines. '. V. Classification Another important method of large scale farming is co-operative farming, the chief characteristics of which is the pooling of land together into a new unit for joint cultivation. The Cooperative Planning Committee envisaged four types of co-operative farming societies: (1) cooperative better farming, (2) co-operative tenant farming, (3) co-operative joint farming, and (4) co-operative collective farming. 1. Co-operative better farming In this kind of society, members retain their individual holdings but agree to follow a plan of cultivation laid down by the society. Such a society is organized to introduce , improved methods of farming. Farmers join together for meeting some specific common process of cultivation or for joint purchase and distribution of improved seeds, fertilizers and agricultural implements. It may also undertake the provision of credit, marketing, land development, irrigation, joint ploughing or joint harvesting, joint use of machinery or joint arrangement for watch and ward. Each member cultivates his own land and takes his profit or bears his loss. According to the working group on cooperative farming (1959) "for all practical purposes, a better farming society works like a multi-purpose society or service co-operative." The Co-operative Planning Committee recommended that better farming societies should be organized in India, at least two in each districts. State aid should be given in the form of (a) expert staff (b) long-term loans to the society for its buildings, permanent improvements of the land and expensive agricultural machinery of cattle, equipment and inexpensive agricultural machinery for the use of the members. 2. Co-operative tenant farming In such society, a large tract of land is procured either by purchase or on lease or freehold and then the entire land is divided into small plots and each one is allotted to a tenant cultivator, who is its member. Such society is formed where land reclamation is to be carried out or where large tracts of land are available on lease from land lords or government. Each member cultivates his own land in accordance with a programme laid down by the society. He is entitled to the produce of land but he has to pay a stipulated rent to the society. The society undertakes to supply credit, seeds, manure and costly agricultural implements. It is optional for the members to avail these facilities. After meeting all expenses and providing resources, the profits of the society are distributed among the members in proportion to the rent paid by them. 3. Co-operative joint farming In this type of society, landholder (whether tenants or owners) pool their small plots of land for joint cultivation, but proprietorship of such plots rests with the owner of land. Joint cultivation is done on the pooled land in accordance with the programme decision taken by the

committee elected and each member receives wages for his work. The produce raised collectively is also disposed off collectively. This proceeds, after meeting all the expenses of cultivator including payment for use of land, wages and cost of management and providing for a reserve fund are shared by the members in proportion to the work they had done. The ordinary functions of this society are: (a) the planning of a crop programme; (b) the joint purchase of farm requirements and joint sale of farm produce; (c) raising of fund on the security of land; crops and other movable and immovable assets of the society for land improvements; (d) purchase of machinery and payment of operational expenses; and (e) all the other activities calculated to promote the development of agriculture. 4. Co-operative collective farming A collective farming society holds the land on free hold or lease hold basis and cultivation is undertaken jointly. After formation of such society, the land be- comes the property of the collective farm and the members lose their individual ownership. The produce is raised collectively and distributed among members in proportion to labour and other resources contributed by them. Each member receives wages for the work done by him. Net profits are divided in proportion to wages earned by each member. Such societies are generally formed on govern- ment land and the lands newly brought under cultivation. Since members do not have a land ownership right in the society's land, three different types of collective farming societies have been noted. (a) Collective farming society which may come into existence as a result of independent farmers transferring their land ownership right to the society in returns for shares of equivalent value. On these shares they will be entitled to a dividend. (b) Collective farming society, which might come into existence as a result of a surrender of land ownership rights by members. Collective farms in communist countries usually conform to this pattern. (c) Collective farming society, which might obtain land from non-members either on free hold or lease hold. The members do not part with any pre-existing right of land ownership because the society has not acquired its land through transfer from its members. Members may either be tenant or agricultural labourers leasing or buying land from government or private land owners. Such societies in India are set up on lands made available by the government. VI. Joint Farming and Collective Farming: Comparison Some difference exists between 'joint' and 'collective' farming which are given here. 1. In joint farming society, members have an ownership rights on their individual holdings. They forsake only the right of independent cultivation and place their lands in charge of the society for unified cultivation. But in collective farming society, the members do not have ownership rights on the land and land exclusively belongs to the society. The members may get the rent. 2. A member of joint farming society earns two kind of income. (a) income for land ownership; and

(b) income from work in proportion to the work done. In collective farming society since the member has no ownership right, he only gets an income in return for his work on the farm. 3. In joint farming society, only right of cultivation is pooled but in a collective farming society, both the right of cultivation and right of ownership are pooled. Lands are cultivated by members who are paid wages. Reasons for Co-operative Farming The merits of co-operative farming arise mainly from its large sized joint management and individual proprietorship. As it has been mentioned earlier in co-operative joint farming, land is pooled for joint cultivation and the farmers continue to retain their property rights and gets a share from the net produce in proportion to their land. Co-operative farming has been advocated on various grounds enumerated here. A. Increase in agricultural production One of the most important reasons why agricultural production is so low in India is that a large number of farmers in our country have small holdings and tiny scattered plots. These small scattered uneconomic holdings are a big bottleneck to the proper utilization of inputs and naturally give less yield per acre. Law of diminishing return is working in case of these small holdings. In a farm of substantial size it is possible to eliminate wasteful operations and ensure better planning of the use of land, including selection of crops, crop rotation, soil conservation, development of irrigation and introduction of improved techniques. By its very nature, a larger unit of operations can diversify its economy and can make a relatively greater contribution to the country's agricultural production. B. Economics of Jarge sized farms The report of the Agricultural Labour Enquiry Committee reveals that 48 % of about half of the agricultural families in the country have land holding of less than 5 acres each; 31 % families have less than 24 acres each while 19 % are landless. When farms are so small, the large sized holdings, through pooling of land, labour and capital resources, and adopting cooperative farming can stop the waste of resources. Small sized farms not only underutilize any accessories of farming but also obstruct investment in particular kind of assets (such as wells) which can be fully utilized. Enlargement of cultivation unit would also reduce risks and afford other economics of large scale production, such as bulk buying, improved management, reduction in cost and higher productivity. In India, where land is scarce, and capital resources are limited and even wastefully employed, co-operative joint farming is considered essential to manage the present agriculture on economic lines. C. Creation of employment and fuller utilization of surplus labour Co-operative farming will help in solving the problem of under-employment and unemployment in the rural areas. When farming is done on a large scale, it requires more labour which generates more employment at remunerative wages. Co-operative farming would rationalize its labour use arrangements and convert the unemployed into employed, thus making it possible to use it for alter- native work (like fruits and vegetable growing, dairying, improving village communication and housing, desilting of tanks, cleaning and deepening of old wells for irrigation, contour bunding, collection and conservation of locally available organic manure and other soil conservation methods). Surplus man power can be identified and made available for these works. The co-operative farming as a higher form of economic organization

will be able to absorb a good number of educated persons within the village and thus prevent their migration to the cities. D. An Instrument of planning In many matters such as taxation, farm purchase, extension and other agricultural programmes, the number of farm holdings present immense difficulties. It has been increasingly felt that the elementary administrative problems of physically reaching the millions of farm families can be tremendously simplified if holdings are pooled. If one co-operative farm is set up in each village then 50 millions farms could be brought down to 5 lakhs. This would enable the government to collect agricultural surplus and use these for economic development. E. As a means of better social work The inequality in the distribution of wealth and exploitation of agricultural labour goes away with the development of cooperative farming societies. Instead, it inculcates the spirit of co-operation, self help and equality among people. The ILO report on survey of 23 countries, points out that cooperation in the field of agriculture has been of great value in certain countries. It says that decisive as environmental conditions may be, co-operative farming offers undoubted economic, social and technical advantages to agricultural undertakings of any dimensions. The report summarizes the following advantages. 1. Amalgamation of works and risks of individual farms help in: introducing and using technological inputs and skills. 2. Deeper ploughing, crop rotation, new varieties of seeds, water and soil conservation measures and other changes in farming techniques are quickly adopted. 3. Mechanization of farming operations and processing speed up the work and reduce the cost of production. 4. Joint management in farming helps in better housing for livestock, larger space for crops and suitable marketing arrangements can be accomplished more economically. 5. Fragmentation is eliminated through pooling of small plots of land. 6. The incentive for cultivation and increasing production are not likely to dampen as the member peasants enjoy ownership rights. ., 7. Such co-operation develops in the individual workers social sense and a good spirit. This type of cooperation may lead to better housing and improvement in commercial services such as electrification, improved communications and recreational facilities. 8. The system also leads to savings in time and thus, achieves improvements in working conditions. 9. An outstanding social advantage may be the placement in agricultural occupations of young men and landless workers who may otherwise be pushed out of the village in search of employment. 10. Co-operative farming offers scope to the men who care to develop their occupational skill and raise their status by working together with their elders in the common enterprises. F. Reduction in the cost of production Co-operative would reduce the cost of production as it will enable full and rational use of animal and human labour. Co-operative farming will enable adoption of scientific method of cultivation through which production can be increased and cost of production will be minimized. G. Availability of services and technology facilities

It has been argued that credit, marketing, irrigation and technological facilities which contribute to increase production and thereby more income of a farmer are easily available on large farms rather than on small farms. It is quite obvious that farms with uneconomic holdings will not be able to afford technological and other facilities which add to his produce or income. Through co-operative farming, the government would be able to distribute various inputs and provide technical knowledge in a more systematic and efficient manner, rather than to a large number of individual farmers. H. Solution to the problem of sub division and fragmentation Co-operative farming is now regarded as an effective answer to the evils of sub division and fragmentation. It has been contended that co-operative farming would halt the fragmentation of holdings which continue at a frightening rate in the country. Consolidation has been tried but, it is not a permanent solution, for the consolidation of holdings will again be broken up among his sons after the present owners death. Dr. V.K.R.V. Rao has stated that cooperative farming is the only way to solve the rural economic problems such as formation of economic holdings which is an essential pre-requisite for making agriculture profitable. I. Reallocation of resources It has been stated that the principal virtue of co- operative farming lies in the scope it offers for reallocation of resources in agriculture so that maximum benefit can be reaped with the existing resources. With the help of such co-operatives, it should be possible to use in common cattle, ploughs or other implements by the peasants without incurring debts or paying of rents as before. This will also enable effective utilization of lands which now lie idle wholly or partially because of inadequacy of the owner's resources. A considerable part of the land of peasants on the margin goes uncultivated because the owners neither possess the capital equipment nor can they afford to hire them at a price. Per acre input in co- operative farming is thus likely to increase. J. Development of democratic spirit Co-operative farming develops among its members a strong democratic spirit which may find outlets of expansion in such activities as the construction of schools, hospital and the setting up of other co-operatives. The group spirit created by co-operative farming will generate a feeling of security and self reliance. K. Reclamation of land There is nearly 100 million acres of land lying waste which can be reclaimed by cooperative farming. In view of the population pressure and adverse land-man ratio, the reclamation of these lands has become a neces- sity. As these often cannot be reclaimed through mere manual labour, the use of available tractors and machines for this purpose becomes a matter of priority over their use for ordinary or better cultivation which can be undertaken with manual labour. Thus the reclamation of land in this manner is possible under mechanized farming i.e. capitalist, state and co-operative. But the first two have no scope in India, hence, the only alternative is co-operative farming. L. Easy to implement policies A study conducted by the Reserve Bank of India pointed out the following advantages of co-operative farming.

1. The government will find the co-operative farming societies a convenient place to demonstrate to the farmers in a practical way, the benefits of their research on a much wider scale. 2. In times of emergencies, the government will find it easy to carry out their policies in the field of agriculture, such as legislations of crop production, procurement of food grains, etc. through the agencies of these societies. 3. Their existence will also facilitate collection of correct statistics in the field of agriculture, the absence of which is keenly felt in farming policies in this particular field. M. Impact on agricultural prices The prices of various agricultural products are fixed by the Union Government on the recommendations of Commission for Agricultural Costs and Prices. The agri- cultural price policy determines the pattern of production of various agricultural products. It also influences the amount of capital to be invested by the farmers in the production of different crops. In this regard, co-operative farming can influence the fixation of agricultural prices as follows: 1. Capital invested in farming can be calculated easily thus enabling in fixing the price of the commodity. 2. The pattern of production can be determined. 3. The bargaining power of the farmers are strong compared to individual farming. 4. Whenever price tend to fall, society can start purchasing and selling agricultural produce at reasonable prices. 5. The society can step up agricultural production by assuring minimum prices to the farmers. 6. It reduces seasonal fluctuations in agricultural price to the minimum. The report of the Food and Agricultural Organization (F AO) sum up the advantages of co-operative farming as "There are certain obvious advantages of the completely co-operative or collective pooling of land, of which the most important are the opportunities for more intelligent management, including planning of rotation, the use of power driven machinery, the selection of different types of land for the purpose of which they are naturally .. suited, the improvement of irrigation, the abolition of boundaries and access roads which waste land, and the more economical and general use of fertilizers and pesticides. Fragmentation is automatically eliminated". VIII. Reasons Against Co-operative Farming Co-operative farming has been opposed on ideological and practical grounds. Some experts have opined that the concept itself is opposed to the spirit of co-operation. H.N. Kunzru said that "when communist nations had failed to implement co-operative farming successfully, a democratic country like India could not do it without sacrificing the freedom of agriculturists and endangering democracy. Following are few arguments against the co-operative farming. A. No increase in production It has been argued that in big farms productivity per man increases but not per acre. In a country like India where we have surplus population on land and acute shortage of food, what we are interested in is the in- i crease of production per acre not per man. The various J studies have shown that the average yield per acre is high in the small farms. In Japan, an average family cultivates only 2.5 acres and that 95 % of the holdings are less than 5 acres and more than 40 % are less than one-fourth acre in size. And yet the yield of paddy in Japan is 48.1 quintals per hectare as compared with 12.2 quintals in India.

Studies conducted in our own country also do not bear out the contention that large holdings are more productive than small holdings. Prof M.C. Dantwala has observed: "in so far as production per acre is concerned it is not at all proved that small farms are inferior. The data available from the farm management surveys indicate that for food crops, at any ratio, the per acre yield on the small farm is larger than that on the bigger farms". B. Failure of voluntary co-operative farming Dr Otto Schiller, an UN expert has stated, "It is hardly possible to show any example that peasants in an : existing old village have voluntarily given up their individual use of land and pooled their land for joint cultivation". He added, "This seems to be true also for India. If so, it is quite surprising that so much is expected from the introduction of co-operative farming in this country. Co-operative farming achieved success in communist countries because it was imposed from the top and was not on a voluntary basis. Whenever this compulsion was relaxed there has been disintegration of co-operative farms. C. Creation of unemployment Large scale farming like co-operative farming pre- supposes some sort of mechanization and rationalization. In a country like India where we have surplus labour and where employment, real and disguised, is a baffling prob- I lem, there is little scope for mechanization. D. Lack of initiative and responsibility Co-operative farming involving the entire productive activity of all their members will leave hardly any scope for personal initiative and sense of responsibility. This will naturally undermine the independent nature of peasantry and make them into listless, irresponsible and un- enterprising and inefficient units. E. Unsuitable for Indian genius The average Indian cultivators has deep rooted . attachment with his plot of land and it is advantageous neither socially nor economically to try to divert him of '. his ownership of land. The little patch of land is dearer to him than his life. On account of this individualistic nature of an Indian farmer, co-operative farming cannot i succeed in India. . F. Failure in other parts of the world Co-operative farming has not succeeded in 'most parts of the world. If they have achieved good results in countries like Israel, it was because of special religious sentiments while in communist countries it was because of force. All experiments of co-operative farming tried in India have by and large, failed. A study of co-opera- tive farming societies made by the Programme Evaluation Organization of the Planning Commission revealed a state of affair which is by no means encouraging. G. Failure of co-operation in other fields The wisdom of starting co-operative farming on a large scale has been doubted as even elementary form of co-operation has not achieved the desired degree of success. The country has not achieved so far, the effect of co- operation in other disciplines. An attempt is being made to erect an imposing of co-operative farming which even countries with high co-operative tradition have hesitated to sponsor. H. Lack of trained personnel

Scheme of co-operative farming can succeed only if the same are being implemented by trained and efficient personnel and hence there is a little chance of co-operative farming being successful. I. Practical difficulties The introduction of co-operative farming has also been opposed because of the practical difficulties. The problems are so numerous that even the best administrative talent would find it difficult to implement it. Moreover, there is insufficiency of administrative personnel even for implementing relatively easier form of co-operation. .In the actual working of co-operative farming, there is bound to be considerable discontentment because of the inherent difficulties in the determination and appoint- ment of profits and wages. The Programme Evaluation Organization of the Planning Commission, in its study of cooperative farming was told that persons who do heavy work are paid the same wages as those who do light work. The members of a co-operative farming society expressed the view that it would be difficult to ascertain the amount of labour put in throughout the year by each men and to pay him accordingly. IX. Co-operative Farming: An Analysis Co-operative farming in India has not proved to be popular and successful as the entire structure stands on a weak foundation. Only about 2 % of the total cultivators have foffi1ed into co-operative farming societies cultivating barely 0.2 % of the total cultivated area. The various causes which have retarded the growth of co-operative faffi1ing are discussed here. 1. Indifference of state government One very important reason as to why co-operative faffi1ing has not achieved much success in India is that it did not receive the priority that it deserved from many state governments. In Andhra Pradesh, for instance, the government did not implement the scheme till late in 1962. The then Madras government did not accept the pattern of organization. Even now most of the state governments are not able to develop and encourage co-operative faffi1ing. 2. Lack of financial faculties The attitude of the central co-operative banks has not been adequately helpful. With regard to co-operative plan resources, the co-operative farming programme has suffered in three ways: (a) the provisions made in the state plans had sometimes been so inadequate that the accepted physical targets fixed for organization had become unrealistic if the societies formed were to be financed in the manner expected; (b) even where provisions were made in the budget, funds were not advanced promptly; and (c) some states made drastic cuts in the programme following the declaration of the national emergency. 3. Delay in registration and allotment of lands Considerable delay sometimes occurred in the registration of societies and the allotment of lands. Some of the societies have become moribund because of the lack of interest and follow up by the officials of the co-operative department. Cases were found where societies were not visited by officials after their registration for a period of 2 to 3 years. The poor members of these societies were chasing the unsympathetic bureaucrats, but in vain.

4. Lack of co-ordination Lack of functional collaboration and co-ordination between the various departments such as agriculture, animal husbandry, irrigation and revenue also caused handicap and retarded the progress of the co-operative farming societies. In some states, co-operative farming societies had been denied electricity connection, even when individuals in the same area had received such connections. 5. Income tax and levy of audit fee In certain states, rules regarding agricultural income tax and the levy of audit fee had acted as positive disincentive to the programme. For instance, in West Bengal, agricultural income tax was assessed on co-operative farming societies at the highest rate provided in the Act. .It was only after four years of the implementation of the programme that this imposition was removed. .In Punjab, co-operative farming societies were charged an audit fee at a rate that was providing a crippling burden to them. In UP, an audit fee was charged on the value of the total capital assets of a co-operative farming society. 6. Paucity of administrative staff The Government of India and the National Co-operative Farming Advisory Board have frequently been stressing the need for whole time office of the rank of Joint Registrar or Deputy Registrar class at the state level to guide the co-operative farming programme and secure interdepartmental co-ordination. In spite of this, in some states such an officer has been entrusted with a variety of other activities. 7. Lack of dedicated non-official leadership A programme of co-operative activity can grow as a main movement only to the extent to which it draws upon the support and guidance of non-official leaders. To get such people who are prepared to dedicate themselves is one of the real problems of the co-operative movement at present. The result has been that the organization of farming societies was largely the result of official initiative. 8. Opposition of political parties The hostile propaganda against the programme carried on by some political parties confused the peasantry and they did not join co-operative farming societies. In certain areas, efforts to obtain technical guidance from the block staff was rendered difficult where panchayat samiti or zila parishad was dominated by political party or group that did not support co-operative farming. 9. Lack of education For the proper development of co-operative farming , it is essential that there should be meeting of minds of members, pooling of their intelligence, skill, man-power " and of land as well as other resources. A sound foundation for the growth of co-operative farming can be laid only if the members joined the society after carefully considering the pros and cons of various issues involved and continue to take part in affairs. In India, farming societies have been often organized without proper education, with the result that members never understood the basic philosophy behind the programme. 10. Essential conditions not fulfilled The essential conditions for the success of a co-operative farming society are the urge for mutual aid for common benefit and social cohesion based on close under- standing among the members. It is necessary to ensure that there is a real desire for joint farming among the

members. To avoid frustration and subsequent disintegration it is necessary that the members should be aware of the difficulties and struggle ahead. 11. Operational difficulties The co-operative farming programme has also suffered due to a number of organizational and managerial difficulties. Co-operative venture, in the realm of joint or collective farming, requires means of superior caliber and a majority of the persons who had formed these societies lacked the requisite knowledge of the management and working of these societies. The failure of co-operative farming has been due to too much emphasis on numbers. If the authorities had cared to establish even one good co-operative farm in a district or even in a state which had demonstrated good results to the people 0 f the area, this experiment would have gone a long way in spreading the value of co-operative farming. It is, however, regrettable that authorities have not been able to convince the people about the economic utility and advantage of co-operative farming through the pilot projects. No amount of propaganda, slogans and speeches would cut an ice in favour of co- operative farming unless the farmer is shown the real economic advantage of these farms. X. Suggestions for Improvement The National Co-operative Farming Advisory Board recommended the following measures fo r revitalization and quantitative growth of co-operative farming societies. I. New societies should be organised only in the areas which offer potential for growth of the programme and favourable circumstances. 2. The members of a co-operative farming society must practice cultivation with respect to all the lands of the society. 3. Financial assistance should be given only if a society adheres to the principles laid down for the programme. The Consultative Committee on Co-operation also held the view that high priority should be given to revitalization of weak societies and at the same time organization of new societies should not be suspended. Committee offered the following suggestions. 1. In view of our acceptance of Gandhiji's philosophy of Ahimsa, implying non compulsion and non coercion in any form or under any name, and of the democratic ideology in action, the consent of the people concerned should be the condition of our experiments. The principle of voluntarism should never be ignored. 2. The work of co-operative farming being of technical nature and financial and other requirements being very heavy, the government should see that all these things are provided for, in adequate measure and in the proper manner without affecting spirit 0 f self help and cooperation among the participants. 3. Co-operative farms should not be allowed to function merely as units of agricultural production. They should be turned into thriving agro-industrial centres. Along with joint farming, other economic activities closely connected with agriculture such as poultry, dairying, fisheries, processing of agricultural produce and cottage and village industries should be started in these centres. .' 4. It may be comparatively easier to introduce co- operative farming where adequate land is available but where property rights have not accrued in non-bhoodan lands already under cultivation, great caution should be observed so as not to hurt the susceptibilities of the people concerned.

5. Large areas of land belonging to temples, churches and multans ( where cultivating tenants are willing to form themselves into societies and take lands in question on lease, tenant farming societies could be easily formed to the great benefit of all concerned. 6. The idea of co-operative farming is, in fact inherent in the community development programme and no such programme should be treated as complete unless and until this test is satisfied. 7. A training programme for secretaries of societies and an intensive programme for organization of village camp should also be undertaken. 8. Incentives for good work should be there besides the creation of necessary conditions in which the membership of such farms may become a matter of pride for joining them. They could be given free I insurance policies, free medical aid, free education to children, loans at reduced rates, supply of improved seeds, insecticides and agricultural implements. 9. Adequate and timely financial assistance should be made available to the co-operative farming society for implementing its programme. . 10. Co-operative farming should become the part of the training and the practice of development at the local, and regional level, so that it will succeed in creating : its own support from within the community. 11. The Committee of Directors has provided valuable guidance on the question of public policy of internal organization and management. It has rightly said that advisory extension service be provided and the training should be given to workers and farmers. The need to link up social education programme and programmes of vocational training for rural youth with co-operative farming should also be stressed. 12. Co-operative farming is required not only for small and uneconomic holding but more comprehensively, for reorganizing and strengthening the agricultural economy as a whole. Unless the holding of different sizes can come together it is not possible to achieve a proper balance between the labour force and the land available. Co-operative farming should be developed in the fo11owing areas: 1. Areas in which new lands have been brought under irrigation for the first time, there is a call for new agricultural practices and new cropping patterns. If consolidation of holdings could be taken up simultaneously, ground would be prepared for an expanded co-operative effort in which sizable land reclamation operations are organized. 2. Areas in which tenants and landless cultivators and ! sma11 farmers are being brought together and organized for the first time in new communities. 3. Sizeable farms which may come into the possession of government on account of the enforcement of land . reforms measures. 4. Areas in which the man-land ratio is favourable to technological change, and sma11 farmers and middle sized owners may, through co-operative farming, obtain the benefits of rapid technological change which in their individual capacity, only the large farmers are in a position to secure for themselves. 5. Densely populated areas in which co-operative farm- ing is not a developed programme by itself, but part of a wider scheme for the strengthening and reorganization of a weak and precarious rural economy. In these areas the development of agriculture and rural industry and the infrastructure constitute a single composite programme. 6. It should be observed, finally, that in approaching farmers and in bringing them together to form co- operative production units it is essential to under- stand well the nature of the society that is being dealt with and the nature of the economy of the area. While working at village level, special attention should be given to the wider problems of the area such as those concerning marketing, credit and pro- vision of supplies and inputs, and programmes for the development of education and other services should be an integral part of the scheme of work.

XI. Conclusion The land holdings in India have reduced in size due to the continuing process of subdivision and fragmentation for over the last several decades. This process has accelerated because of the growing pressure of population on land, absence of alternative occupation and the legal coverage provided by the law of succession. The main problem is not merely application of better productive techniques but the basic need is to alter agrarian structure and create units of economic size amen- able for greater efficiency and productivity and thus overcome disincentive, diseconomics, low consumption and low surplus. So the better alternative to these fragmentations of land holdings is the introduction of co- operative farming which is voluntary in character and constructive in approach. %%%%%%%%%%%%%%%%%