B. Formulation of Farm Management Improvement Programme of Members
(1) Classification of Farmers: It is the farmers themselves who decide finally what, how much and when to produce. Any good production programme does not help at all unless the farmers have sufficient willingness for its implementation.
Therefore, the classification of farmers may be made according to the extent of willingness into the following three categories: (a) Expansive Re-production Oriented (b) Simple Re-production Oriented (c) Reductive Re-production Oriented This classification will be useful for designing tailor-made programme on farm management improvement. The farmers under (b) can be shifted into (a) group if desirable conditions are created and the farmers under (c) may look forward to leaving the farm if any opportunity is given. Hence, farm guidance should be concentrated on those farmers who are under (a) and (b)
(2) Target for Income: Expenditure of a farm family will change year after year and in 5 to 10 years they may need to spend considerable amount of money for the marriages of their children or for the repair of their houses etc. Their family composition may also be changed. A farmer must at least get an income from their farm to meet their family expenses. The minimum target for income will be at the level where the net income is equal to family expenses. But such income does not assure the accumulation of capital for expansive production.
(3) Long-Term Farm Management Programme of the Farmer: Long-term programme should be formulated on the basis of the data or factors mentioned above for the period of the next 3 to 5 years. Contents of the programme should be as simple as possible.
The following are the suggested items to be taken into consideration while making long-term programme.
(a) Land utilization and land improvement plan
(b) Family labour and hired labour
(c) Cultivation plan
(d) Purchase plan of young livestock and breeding plan
(e) Feed production plan
(f) Agricultural machinery and facilities (to be owned individually or jointly)
(g) Improvement of cultivation or breeding techniques
(h) Work plan by types of crops
(i) Purchase plan of production materials (j) Marketing plan of produce
(k) Financial plan of production
(l) Repayment plan of loans
(m) Cash payment plan of family expenditure
(n) Plan of income and expenses.
(4) Standardization of Farming Pattern
The farm management programme prepared by an individual farmer may vary according to the ability of each farmer and such diversified pattern of management will make it difficult for co-operatives to perform effective services to farmers. Therefore, it requires the revision of or the adjustment of the individual plans with a view to reducing the number of farm management patterns and standardizing them.
The concentration of the same pattern of farm management in one locality will increase the work efficiency in the field of farm guidance and also makes it easier to standardize the
production techniques, to utilize the facilities jointly and to establish the common interests among the farmers. Also, the concentration of production will strengthen the bargaining power of agricultural co-operatives in the field of marketing.
In deciding major crops to be produced in the area, it must be considered whether the quantity of the products are sufficient for efficient marketing, whether demand and price in the market are favorable and whether the climate and the soil are suited for the crops, etc.
C. Formulation of Farm Management Programme By Crops
In view of the fact that efficient marketing is an important element in successful implementation of the programme and that superior quality, constant supply of sufficient quantity, competitive price, etc. are essential factors in successful marketing, farm guidance of agricultural co-operatives must put an emphasis on the following points: (1) Increase of production ; (2) Labor saving-land consolidation and mechanization ; (3) Reduction of production costs; (4) Quality control.
D. Formation of Commodity Groups: Another point that must be kept in mind in formulation farm guidance programme is to organize the farmers in the area according to the line of crops (commodity groups) they are cultivating. Such groups of farmers may maintain much stronger unity because of their common economic interests and become a cell among the members to initiate the implementation of such a long-term programme. This will be the only way for the small farmers to strengthen their competitive power in the market.
The groups will also be of immense importance as nuclei for imparting improved techniques of production and various information relating to their farm management and production as well as in assessing the real needs of the members. tasks of these groups may be as follows:
(1) Study of improved production techniques and of management improvement. (2) Joint action—purchase of seeds and young livestock, selection of production and marketing materials, raising funds, selection of markets, decision of marketing conditions, marketing and joint works. (3) Joint ownership of machinery and other facilities and their utilization. (4) Representation of the interest of members.