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Farm Acts, 2020 [UPSC Current Affairs]

The Indian agriculture acts of 2020, often referred to as the Farm Acts are three acts initiated by the Parliament of India in September 2020. After having been approved by the Lok Sabha and the Rajya Sabha, the President of India gave his assent to the bills on 27 September 2020. In this article, you can read all about the farm acts of 2020, which are in the news very often. This is a part of the  UPSC Syllabus  under current affairs, economy, agriculture and polity.

Farm Acts, 2020:- Download PDF Here

Farm Laws Latest News

In November 2021, the Prime Minister in an address to the nation announced that the three farm laws would be repealed in the wake of the unending protests by some of the farmers. The government will bring in a single bill in Parliament to repeal the three acts. All boards and offices that were constituted for implementing the provisions of the laws would also cease operations and any decision made by the boards would be null and void (some states had tried to operationalise the laws during the brief six-month period).

Farm Acts, 2020 Background

• Agriculture comes under the state list of Schedule 7 of the Indian Constitution and to initiate reforms in the agricultural sector, in 2017, the central government had released model farming acts. However, several reforms suggested in the model acts had not been implemented by the states. The centre promulgated three ordinances in the first week of June 2020.
• In September 2020, the President gave assent to the three farm acts.
• There have been protests against the acts by farmers in Punjab, Haryana and other states. Some states have also opposed the new legislation. The Kerala legislative assembly passed a resolution against the farm reforms and sought their withdrawal.
• The Supreme Court stayed the implementation of the Farm Acts 2020 and constituted a four-member committee to make recommendations within two months.
• The three laws aim to change the way agricultural produce is marketed, sold and stored across the country. They are mostly focussed on the forward linkages to the agricultural sector.

The following are the three acts passed and their salient provisions.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020:

• The act aims at opening up agricultural sale and marketing outside the notified Agricultural Produce Market Committee (APMC) mandis for farmers, removes barriers to inter-State trade and provides a framework for electronic trading of agricultural produce. It expands the scope of trade areas of farmers’ produce from select areas to “any place of production, collection, aggregation”.
• It prohibits state governments from levying any market fee, cess, or levy on farmers, traders, and electronic trading platforms for the trade of farmers’ produce conducted in an ‘outside trade area’.
• The act seeks to break the monopoly of government-regulated mandis and allow farmers to sell directly to private buyers.

Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020:

• It creates a national framework for contract farming. It provides a legal framework for farmers to enter into written contracts with companies and produce for them.
• The written farming agreement, entered into prior to the production or rearing of any farm produce, lists the terms and conditions for supply, quality, grade, standards and price of farm produce and services.
• It defines a dispute resolution mechanism. The Act provides for a three-level dispute settlement mechanism– Conciliation Board, Sub-Divisional Magistrate and Appellate Authority.

Essential Commodities (Amendment) Act, 2020:

• It removes cereals, pulses, oilseeds, edible oils, onions and potatoes from the list of essential commodities. It will deregulate the production, storage, movement and distribution of these food commodities.
• It will also remove stockholding limits on such items except under “extraordinary circumstances”. The central government is allowed regulation of supply during war, famine, extraordinary price rise and natural calamity of grave nature and annual retail price rise exceeding 100% in horticultural produce (basically onions and potatoes) and 50% for non-perishables (cereals, pulses and edible oils), while providing exemptions for exporters and processors at such times as well.
• It requires that imposition of any stock limit on agricultural produce be based on price rise.
• It will allow agribusinesses to stock food articles and remove the government’s ability to impose restrictions arbitrarily.

Arguments in Favour of the Farm Acts

• The acts are being hailed as a watershed moment in the history of Indian agriculture that could initiate a complete transformation of agriculture.
• The new farm acts would help the small and marginal farmers (86% of total farmers) who don’t have the means to either bargain for their produce to get a better price or invest in technology to improve the productivity of farms.
• The new acts will help in establishing a much more integrated market, creating competition, and enhancing efficiency and effectiveness of the marketing domain of the agricultural sector.

Addressing the lacunae of APMC acts:

• The law related to the regulation of Indian agricultural markets like the Agricultural Produce Market Committees (APMC) act had led to centralization and was thought to be reducing competition and participation, with undue commissions, market fees, and monopoly of associations damaging the agricultural sector.
• The act seeks to break the monopoly of government-regulated mandis and allow farmers to sell directly to private buyers by circumventing the APMCs. The new laws provide full autonomy for farmers to sell their produce.

Higher price realization for farmers:

• The act is expected to increase the freedom of choice of sale of agri-produce for the farmers and this could help the farmers in getting a better price for their produce because of more choices of markets. This would allow small and marginal farmers to sell their produce at market and competitive prices.
• The act allows for private players to buy the farmers’ produce even at their farm gates. This will allow the farmers to get better prices through competition and cost-cutting on transportation.
• The farmers will be able to get a greater share of the price being paid by the customers, which currently stands at a lowly 15%.
• This would help raise rural incomes and subsequently provide an impetus to the economy at large due to the increased demand from the rural areas.

One India, one agricultural market:

• It is expected to pave the way for the creation of a ‘One India, One Agriculture Market’ by promoting barrier-free inter-state and intra-state trade with provisions of electronic trading as well. This could help correct the regional disparities in demand and supply of the agricultural produce. This could help farmers of regions with surplus produce to get better prices and consumers of regions with shortages, lower prices.

Risk mitigation:

• Contract farming will help small and marginal farmers transfer the risk of market unpredictability from the farmer to the sponsor.
• It reduces the risk of price and marketing costs on small and marginal farmers.

Better price discovery:

• Contract farming will help farmers reduce the cost of marketing and improve their incomes.
• Farmers will engage in direct marketing thereby eliminating intermediaries resulting in the better realization of price.

Scope for increasing farm productivity:

• Contract farming agreements between companies and farmers are already operational in crops of particular processing grades (the potatoes used by beverages and snacks giant PepsiCo for its Lay’s and Uncle Chips wafers) or dedicated for exports (gherkins). The processors/exporters in these cases typically not only undertake assured buyback at pre-agreed prices, but also provide farmers with seeds/planting material and extension support to ensure that only produce of the desired standard is grown.

Impetus to private sector participation:

• The act seeks to encourage private sector participation in procurement and reduce the government burden of procuring.
• Contract farming can ensure uninterrupted sources for their production and also secure the purchaser from market price fluctuations.

Legal framework protecting farmer interests:

• The legal framework for contract farming will empower farmers to engage with the contract buyers on a level playing field without any fear of exploitation. The mutually agreed remunerative price framework is envisaged under the act. This provision is touted to protect and empower farmers.
• Sale, lease or mortgage of farmers’ land is totally prohibited and farmers’ land is also protected against any recovery.
• Farmers have been provided with adequate protection.
• An effective dispute resolution mechanism has been provided with clear timelines for redressal.

Addressing the lacunae in ECA, 1955:

• The Economic Survey 2019-20, which has extensively analyzed the Essential Commodities Act, notes that the government intervention under the ECA 1955 often distorted agricultural trade while being totally ineffective in curbing inflation.
• Since large stocks held by traders can be outlawed under the ECA 1955 anytime, they tend to buy far less than their usual capacity and farmers often suffer huge losses during surplus harvests of perishables. The threat of restrictions also acts as a disincentive for private investment into cold storage, warehouses, processing and export as entrepreneurs get discouraged by the regulatory mechanisms in the Essential Commodities Act, 1955.
• Such laws also restrict opportunities to export even when global crop prices go up.

Attracting private investment:

• The deregulation through ECA amendment will help attract private sector/ foreign direct investment into the agriculture sector.

Improve the forward linkage infrastructure:

• The incoming private sector investment would help build supply chain infrastructure for the agricultural sector. This could help facilitate the supply of Indian farm produce to national and global markets.

Arguments against the Farm Acts

Some of the farmer organizations and others have called the acts corporate-friendly and anti-farmer and have expressed the fear that the new acts may hurt the farmers’ interests. The bills have faced strong protests mainly from Punjab farmers and from opposition parties.

Against the spirit of federalism:

• Since agriculture and markets are State subjects – entry 14 and 28 respectively in List II – the acts are being seen as a direct encroachment upon the functions of the States and against the spirit of cooperative federalism enshrined in the Constitution.
• The Centre, however, argued that trade and commerce in food items is part of the concurrent list, thus giving it constitutional propriety.

Fears with respect to MSP system:

• Farmers fear that the new proposed system will end the minimum support price regime. They fear that encouraging tax-free private trade outside the APMC mandis will make these notified markets unviable, which could lead to a reduction in government procurement itself.
• The creation of private mandis will drive agriculture business towards private mandis, ending government markets, intermediary systems and APMCs. In a scenario where more and more trading moves out of the APMCs, these regulated market yards will lose revenues.
• As a result, big corporate houses will overtake markets, thereby procuring farm produce at incidental rates. Critics view the dismantling of the monopoly of the APMCs as a sign of ending the assured procurement of food grains at minimum support prices (MSP). This could lead to the increasing clout of private buyers and could lead to low bargaining powers of the farmers.
• Lack of statutory support in the acts for the MSP is a major point of concern, especially for farmers from Punjab and Haryana, where 65% of wheat (2019) is procured at MSP by the Food Corporation of India and state agencies.
• Critics argue that ensuring a larger number of farmers get the MSP for their produce and straightening kinks in the APMCs, instead of making these State mechanisms redundant is the need of the hour.

Effect on state revenues:

• Mandis bring in revenue for state governments. The diversion of agricultural trade towards private mandis could lead to the loss of states’ revenues.
• Some states are concerned about the loss of revenue from mandi taxes and fees, which currently range from 8.5% in Punjab to less than 1% in some States.

Effect of middlemen:

• Middlemen working with APMC and traders will be affected.

Past examples:

• The deregulation of the sugar industry in 1998, which paved the way for private establishments, did not result in a significant improvement in farmers’ productivity or incomes.
• A state-led attempt in Bihar to deregulate the APMCs in 2006 has not resulted in an increase in farmers’ income or improved infrastructure.
• Without strong institutional arrangements, laissez-faire (no economic interventionism) policy may harm lakhs of unorganised small farmers.

Cases of fraud:

• 150 farmers from four districts in Madhya Pradesh were allegedly defrauded of over Rs 5 crore by traders. Similar cases have been reported recently from Hoshangabad, Seoni, Gwalior, Guna, Balaghat, Barwani and Jabalpur districts.

Challenges to farmers:

• The inability of the small and marginal farmers to understand the terms of the contract may lead to the exploitation of such farmers.
• The lack of bargaining power of farmers with big companies is also a major concern.
• Critics are apprehensive about formal contractual obligations owing to the unorganised nature of the farm sector and lack of resources for a legal battle with private corporate entities.

Lack of price fixation mechanism:

• The Price Assurance Act, while offering protection to farmers against price exploitation, does not prescribe the mechanism for price fixation. There is apprehension that the free hand given to private corporate houses could lead to farmer exploitation.

Increased threat of food insecurity:

• Critics anticipate that the easing of regulation of food items would lead to exporters, processors and traders hoarding farm produce during the harvest season, when prices are generally lower, and releasing it later when prices increase. This could undermine food security.

Increased volatility of food items:

• Critics anticipate irrational volatility in the prices of essentials and increased black marketing.

Lack of clear cut guidelines:

• The act proposes a price trigger mechanism for invoking ECA. However, it involves a wide range for a price trigger to invoke the ECA. Many things are left vague. Price triggers or price levels do not have a reference to a locality.

Farm Acts – Critical analysis

The constitutional validity of the acts:

• Article 246 of the Constitution places “agriculture” in entry 14 and “markets and fairs” in entry 28 of the State List. But entry 42 of the Union List empowers the Centre to regulate “inter-State trade and commerce”. While trade and commerce “within the State” is under entry 26 of the State List, it is subject to the provisions of entry 33 of the Concurrent List – under which the Centre can make laws that would prevail over those enacted by the states.
• Entry 33 of the Concurrent List covers trade and commerce in “foodstuffs, including edible oilseeds and oils, fodder, cotton and jute”. The Centre, in other words, can pass any law that removes all impediments to both inter- and intra-state trade in farm produce, while also overriding the existing state APMC Acts. The FPTC Act does precisely that.
• However, some experts make a distinction between agricultural “marketing” and “trade”. Agriculture per se would deal with everything that a farmer does — right from field preparation and cultivation to also the sale of his/her own produce. The act of primary sale at a mandi by the farmer is as much “agriculture” as production in the field. “Trade” begins only after the produce has been “marketed” by the farmer.
• Going by this interpretation, the Centre is within its rights to frame laws that promote barrier-free trade of farm produce (inter- as well as intra-state) and do not allow stockholding or export restrictions. But these can be only after the farmer has sold. Regulation of the first sale of agricultural produce is a “marketing” responsibility of the states, not the Centre.
• The Judiciary will have to take a call on the constitutional validity of the farm acts, 2020.

Need to address misconceptions:

Misconceptions regarding MSP:

• An analysis of the recent laws makes it clear that as against the prevalent misconception that the prevailing system of Minimum Support Price (MSP) is being replaced, rather new options were being put forward for the farmers through these farm bills.
• The government has made it clear that procurement at MSP will continue and also that the mandis will not stop functioning. Under the new system, farmers will have the option to sell their produce at other places in addition to the mandis.
• It is worth noting that only 6% of farmers actually sell their crops at MSP rates, according to the 2015 Shanta Kumar Committee’s report using National Sample Survey data. None of the laws directly impinges upon the MSP regime.

Misconceptions regarding contract farming:

• There are fears that contract farming will lead to land loss of the small and marginal farmers to big corporates. However, adequate protection of land ownership is in place to protect farmer interests.
• The act explicitly prohibits any sponsor firm from acquiring the land of farmers – whether through purchase, lease or mortgage.
• The point to note is that contract cultivation is voluntary in nature and farmers cannot be forced into an agreement.

Inevitability of agricultural reforms:

• The Indian farmer constitutes 40 per cent of the country and an even higher percentage of its poor and as the available data points out, is under immense stress.
• Indian economic and social development depends upon the empowerment of the farmers and the rural segment of our population. Thus there is an urgent need for agricultural sector reforms to move beyond the antiquated agricultural policies.
• The Indian farm bills are in line with international precedence wherein a number of developing economies have been making changes to their agriculture policies since the 1990s to encourage private sector involvement which would provide a major fillip to the sector.
• The International Monetary Fund has also backed the recent farm acts as being an important step in the right direction.

Way forward:

• The farm acts are a step in the right direction and there is the need to ensure the effective implementation of the same.
• The following measures could help address some of the concerns regarding the farm laws.
• The move to enlarge the market for agricultural produce is welcome but this should be supplemented by measures that will help preserve the existing ‘safety net’ mechanisms like MSP and public procurement.
• Though a farmer will have the freedom to choose where he/she wants to sell, he/she may not have the knowledge to negotiate the best terms with a private company. The state should work towards empowering the farmers in this direction.
• The government must create enabling infrastructure to enable the farmers to do barrier-free trading of agricultural commodities.
• The method of determining prices, including guaranteed price and additional amount, should be provided in the agreement as annexures. The government must ensure suitable provisions to ensure that the prices are not below the MSP.
• In case of prices subjected to variations, the contract agreement must include a guaranteed price to be paid for such produce, and a clear reference linked to the prevailing prices or any other suitable benchmark prices for any additional amount over and above the guaranteed price, including bonus or premium.
• There should be time-bound redressal of grievances.

These Farm Acts, their effects and the significance of repealing them are important for the upcoming UPSC exam .

FAQ about Farm Acts, 2020

What are the 3 farm laws, under which list the subject of agriculture falls in the constitution.

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What is Farm Bill? Pros, Cons, and Challenges of Farm Bill 2020

Update on Farm Bill 2020: Farm bill revoked. Yes, you heard it right!

Prime Minister Narendra Modi on Friday 19 November 2021, announced to repeal the three contentious agriculture laws that were enacted on September 17, 2020.

The Three Farm Bill passed by houses of Parliament was given a green signal by the President of India on Sunday, September 27, 2020. The Farm Bill 2020 has created quite a stir in India with a mix of responses among the countrymen.

THE FARM BILL 2020

The farm bill 2020 included 3 bills for farmers. the bill are:.

• Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill 
• Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill 
• Essential Commodities (Amendment) Bill

Also Read: Full Details on 3 Farmers Bill 2020 .

AIM OF GOVERNMENT: FARM BILL 2020

The Farm Bill was passed with a plan to reform the agriculture sector and bring better benefits to the farmers in terms of getting them good deals for their produce.

Agriculture is one of the biggest sectors of Indian economy, this change is going to see a very big structural shift. 

The Modi government sees this as a pavement to let corporate investments enter the current ecosystem and also believes that this is going to be more profitable to farmers. 

OBJECTION OF FARM BILL 2020

Many political parties and farmers of India are extensively opposing the Farm bill. Their outlook is otherwise and their version finds the farm Bill 2020 will Impact the welfares of farmers.

So, there have been protests and rallies against the current government and the farm bill in various parts of India.

Although there have been assurances from Agriculture Minister Narendra Singh Tomar confirming protection to Farmers in form of a Minimum Support Price mechanism and land ownership, a major part of the farmers’ population is still protesting for the withdrawal of the Act.

HOW ARE THESE FARM BILL 2020 BENEFICIAL TO FARMERS? –  PROS

• Farmers will have a vast territory and an alternate channel to sell their produce, creating a competitive market favorable to them. There will be a corresponding market ecosystem for the farmers while in the earlier set up they could only make deals through NAM system.
• Farmers will not be bound to pay commissions to commission agents at mandis to sell off their crops. The farmers will now move towards a free and more flexible system.
• There is an amendment to the Essential Commodities Act. The purpose of this act is to eliminate the insecurities of farmers. At present the traders purchasing from farmers consider that the stocks are excess, they hold stocks, and prices are penalized. This often imposed losses for the farmers.
• Minimum Support Price remains in place and government procurement will continue.
• The existing APMC system leads to rise in a cartel led by traders. Thus there is an unfair market and it pays farmers only the MSP for their produces.

WHY IS OPPOSITION TO FARM BILL 2020 SO STRONG? – CONS

• The Farm Bill stands against India’s soul of cooperative federalism and directly encroaches upon the functions of the State. The constitution says that agriculture and markets are State subjects while Central Government argues that trade and commerce in food items is a simultaneous list, thus constitutional decorum is maintained.
• State governments will no longer be able to collect the market fee and levy cess thus this will incur a loss of revenue to the State Governments
• There is a large scale fear of the demolition of APMC mandis. There will be disassembling of APMC which in turn points to the slow elimination and assured procurement of food grains by the government at MSP.
• Farm Bill requires farmers to sign farm agreements, before the production of crops. Amongst many other terms, the price that needs to be paid should be mentioned in the agreement beforehand. In case there are variations in prices, the agreement must include a guaranteed price and clear references for additional amounts. This will include bonuses and premiums. Since there is no mechanism for price fixation, the farmers are not protected against price exploitation. Since corporate houses are given a free hand, there are possibilities of exploitation, owing to the unorganized nature of our agro sector. Also, farmers will lack resources when in need of a legal battle with corporates.
• The Essential Commodities Ordinance has delisted cereals, pulses, oilseeds, edible oils, onion, and potatoes from the essential commodities list. There is the regulation on such produce even during the war, famine, extraordinary price rise, and natural calamities, only exemptions being exporters and processors.  The exporters, processors, and traders may hoard produces at lower prices and release only when prices go up and States would have no control over the handiness of stocks. 
• Although the government assures MSP, no law mandates this. Farmers are more concerned with MSP.
• About 500 farmer unions and transport unions are standing in protest against Farms Act 2020 and are demanding that the Government should repeal all three Acts. They firmly believe that the Acts are detrimental to their interests and that the government is pulling hands off the MSP responsibility.

CHALLENGES TO FARM BILL 2020

• Mistrust has been formed among farmers against the government  due to the fact that the bill was passed without debates. Hence implementation of the Act will be a challenge to the government.
• Now that the restrictions on storage on a few products are repealed, imports of such products may increase. This again will be a challenge to protect domestic farmers from such imports.

CONCLUSION : FARM BILL 2020

The Exclusion of middlemen benefits farmers only when they have a well-formed infrastructure like markets, arduous storage facilities, electricity supply, and a link to food processing companies who could compete to buy their produce. The government should also provide statutory backing to the MSP and government procurement in order to counter the insecurities of farmers. 

Agriculture employs half of the population in India. It is surely in need to reform, but the new farm bill and the controversies surrounding it are unlikely to be a solution for farmers’ troubles. On one hand, the new bill improves farm incomes, attracts investment and technology, on the other hand, it the middlemen who effectively run wholesale markets, and state governments stand to lose their income.  

The bill may prove to be revolutionary but the government needs to address farmers’ concerns and put an end to their uncertainties. By way of open discussions for sake of removing loopholes

Frequently Asked Question: FARM BILL 2020

Farm Bill or The Indian agriculture acts of 2020 were three acts initiated in our Parliament in September 2020. The bill was approved in September 2020 in Lok Sabha and Rajya Sabha. It was given assent by President on 27 September 2020. According to the ruling government, these acts are reforms to accelerate growth in agriculture through private investment.  It intends to support small farmers in attracting better deals and investment in technology to improve productivity. Since the passing of the law, there has been a massive protest by farmers which led to the staying of the law by the Supreme Court in January 2021 for redressal of farmers’ grievances.

1. The Farmers’ Produce Trade and Commerce Bill 2020, lets farmers sell their produce outside APMC mandis. 2. The Farmers (Empowerment and Protection) Agreement 2020, provisions contract farming and direct marketing. 3. The Essential Commodities Bill, 2020, opens up storage, production, movement, and sale of cereals, pulses, edible oils, and onion.

1. The Farmers fear scrapping of MSP as the act provisions selling the harvest directly to private companies without relying on APMC Mandis. 2. Most agricultural products have been removed from the Essential Commodities List. This will lead to price volatility and hoarding. 3. Farmers also fear that allowing private investment in farm infrastructure may squeeze out the traditional farmers.

The New Farm bill gives farmers and traders opportunities alike. They can have freedom of choice in sale and purchase of produce. There will be an alternative trading channel to promote competition, leading to better deals in favor of farmers. Farmers get cost benefits in form of reduced transport cost, no commission, lesser transaction cost, and a large number of buyers. As the farmers will be able to connect directly with the big traders and exporters, it will bring profit to agriculture and bring revolutionary changes.

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What is the Farm Bill and why are farmers protesting against it?

Farmer protest in India's national capital has created quite a flutter globally too. But very few know exactly what the farmers are protesting. Here's a primer or an explainer on the contentious Farm Bills.

Key Highlights

• Since 26 November, farmers from Punjab and Haryana have laid siege to the national capital. They are protesting against recently passed Farm Bills
• These bills lay the framework for allowing farmers to sell produce directly to corporates, argues the Centre
• Farmers fear that this may be an excuse to pull off the MSP safety net from under their feet

Since 26 th November 2020, the borders of Delhi have been witnessing a huge agitation being carried out by farmers, most of them from Punjab and Haryana.

The farmers are protesting against 2 Farm Bills that the Rajya Sabha recently passed: (1) the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020, and (2) the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020.

The two bills had already cleared the lower house – the Lok Sabha. When they were introduced in the Rajya Sabha, there was ruckus and finally, the Bill was passed through a voice vote.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020: This Bill allows the farmers to sell their produce outside the Agricultural Produce Market Committee (APMC) regulated markets. The APMCs are government-controlled marketing yards or mandis . So, the farmers clearly have more choice on who they want to sell. The government's logic, economic expert Gurcharan Das writes in TOI , is that the Agricultural Produce Marketing Committee (APMC) is an obsolete institution from an age of scarcity, meant to protect the farmer but has now become his oppressor, a monopoly cartel fixing low prices for the farmers' produce, forcing distress sales.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill, 2020: This Bill makes provisions for the setting up of a framework for contract farming. The farmer and an ordained buyer can strike a deal before the production happens.  According to PRS India, a "Standing Committee on Agriculture (2018-19)" observed the APMC laws needed reforms as cartelization had begun to crystallise due to a limited no. of traders in APMC mandis . Therefore the following law was passed in September 2020. 

The Essential Commodities (Amendment) Bill 2020:  The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020 allows intra-state and inter-state trade of farmers’ produce beyond the physical premises of APMC markets.  State governments are prohibited from levying any market fee, cess or levy outside APMC areas.

How will the Bills benefit the farmers?

Gurcharan Das, expert as he is in the field of economics, points out that the three farm laws offer three basic freedoms to the farmer. 

• Defeat the monopoly cartel at the APMC mandi and sell the produce anywhere to anyone
• Bypass the Essential Commodities ACt and be free to store inventory which was constrained so far by stocking limits of ESCA.
• Free to make contracts and transfer risk to businessmen in deals made over a crop even before yield is made or met.

Why has the Centre not reached out? The Central ministers and Prime Minister Narendra Modi have tried reassuring the farmers that the government has no plans to end the government procurement system nor the MSP policy. But fear, misconceptions persist and the two sparring parties have not had meaningful negotiations.

Despite four rounds of talks with two of them involving a 3-minister panel of the government and a few dozen representatives of the farmers' unions, he impasse has not been broken. The Centre is also said to have offered a written guarantee that MSP will not be withdrawn. Farmers' lobby is not ready to buy that and demands the repeal of the recently passed Farm Bills.

Harvard alumni and bestselling author Gurcharan Das, a former CEO of Procter & Gamble India, writes in The Times of India that the agitating farmers of Punjab are looking at short term monetary games while the Farm Bills were coined with long-term economics in mind. And that Prime Minister Narendra Modi, one of the world's greatest communicators forgot to take all stake-hoders into confidence before the Bills were tabled, thus leading to false rumours that the price subsidy (MSP) is going to be withdrawn.

Gurcharan Das also points out that a small, organised, and well-funded group in a democracy can hijack the nation's interest when the majority is silent and unorganised. Das claims that behind these protests are the arthiyas , buying agents in PMC mandis who stand to lose Rs 100 crore a year in commissions, as well as the rich farmers of Punjab who are part of the 6 of India's farmers who benefit from the MSP regime.

Why are the farmers upset?

The farmers of Uttar Pradesh, Punjab, and Haryana are angry with the provisions of these Bills as they are afraid that these Bills may be the platform that the government (at the Centre) is setting up for the replacement or scrapping of the otherwise robust support system prevalent in their states for the purchase of their crops. They fear that the Minimum Support Price (MSP) guarantee that was their safety net since the Green Revolution of the 1960s kicked in, maybe snatched away from under the pretext of giving the farmers more playing ground and better platforms.

The state-government driven crop produce procurement infrastructure in these areas is very good. Procurement through the Food Corporation of India at promised MSP to farmers, which is declared before every agriculture season, encourages farmers to focus on taking more yield.

23 agricultural crops have MSPs, though the governments primarily buy only rice and wheat. Farmers fear the two recent bills as they feel these agriculture reform processes will kill the government procurement process as well as the MSP. And why d we see most protesters from Punjab and Haryana? That is because they are the biggest beneficiaries of this safety net.

The farmers of Punjab and Haryana: As per certain reports, nearly 89 per cent of the rice produced by the farmers in Punjab is procured by the government. In Haryana, it is 85%. farmers in Punjab and Haryana face no price risk and price risk and are in fact incentivised to grow paddy and wheat. But the nation has been facing a shortage of pulses and the wheat and rice instead have been a surplus in FCI’s godowns. Also, rice is a water-intensive crop and farmers from areas with water shortage too grow it as there is an MSP assured in the end. Continuous adoption of rice-wheat cropping system in North-Western plains of Punjab, Haryana and West Uttar Pradesh has resulted in depletion of groundwater and deterioration of soil quality, posing a serious threat to its sustainability," says a government study.

Also, these Farm Bills are encouraging farmers to strike deals with large corporates, and farmers do not trust corporates. Meanwhile, the protesting Kisan unions have announced to observe Bharat Bandh on December 8 against the Centre's new agricultural laws. They have threatened to block all the entry points at Delhi borders and occupy all the highway gates.

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Recent News

A critical analysis of the farm bills 2020.

The Author, S A Rishikesh, is a 2nd-year, BA.LLB (H) student at Shri Ramswaroop Memorial University, Lucknow. He is currently interning with LatestLaws.com.

On September 27, 2020, the president of India Mr. Ram Nath Kovid gave his assent to the three farm reform bills - The Farmers’ Produce Trade And Commerce (Promotion And Facilitation) Bill 2020, The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill 2020, and The Essential Commodities (Amendment) Bill 2020. These bills have been passed by the parliament in the recently concluded Monsoon season. Our Prime Minister Mr. Narendra Modi hailed by passage of these bills by saying “A watershed moment in the history of Indian agriculture!”

But the thing to worry about is the farmers for whose betterment these Acts have been made are on streets protesting these Acts. Farmers organizations like Bhartiya Kisan Union (BKU) and the All India Kisan Sangharsh Coordination Committee (AIKSCC) have been protesting the bills from September 2020 itself. They have raised the slogan of ‘KISAN BACHAO MANDI BACHAO’ in this article we will discuss the reforms brought by new Acts, why are farmers protesting and way forward.

BRIEF HISTORY AND PROVISIONS OF NEW ACTS

India is and has been an agrarian economy. After India gained Independence in 1947, farmers used to sell their products direct to the consumers. But due to prevailing system of Zamidars or money lenders, farmers were trapped in perpetual debt. Farmers need to buy seeds, fertilizers and other things required for growing a crop, for buying all these things you need money so farmers took loans from Zamidars or money lenders who used to charge a very high interest rate on the principal amount. Farmers were unable to pay such a hefty amount and in such cases to get their money back money lenders or the Zamidars used to buy the whole produce of the farmers but, they paid very less amount to farmers because farmers did not have the bargaining power. Now to again sow their fields farmers required money so this cycle continued, and farmers were always in debt.  

This process was very exploitative so to help the farmers and end this system government of India introduced APMC (Agriculture Produce Market Committee) Act. It was introduced in 1960’s at the very same time when green revolution started in India many experts believe that in the major of green revolution APMC Act played a major role. APMCs set up Mandis or Markets across India where farmer’s produce was sold. There are around 7000 APMCs in India at present. Now, the process of selling the produce is that after harvesting crops are brought to the Mandis or Markets where they sell the produce through auctioning or price discovery. Whom are the farmers selling the crops? Not to the government but the middlemen or Arhatiyas. Middlemen are people between the farmer and the retailer or big traders. For example, farmers sell their vegetables to the middlemen and then the vegetable vendor buys vegetable from the middleman, vegetable vendor will not buy directly from the farmers. Government gives license to these Middlemen; shops, storage facilities etc. are provided to them in APMC markets. Many people work in these APMCs, there is storage of grains, so it requires laborers, accountants so overall it is a self-thriving ecosystem. One thing which should be noted here is these APMC markets are regulated by state governments, a tax is charged on each transaction so in a way government knows at price produce is being sold.

Now what about the produce that are not bought by the middlemen in these markets? This is being bought by the government at MSP (Minimum Support Price). MSP is constant throughout the country. MSP also ensured that produce bought be the middlemen were not below a certain price. When everything is so good are farmers happy? According to National Crime Bureau report 2018, 1,34,560 suicides were reported in India out of which 10,350 were farmers remember this was total number of reported cases. This system was good seeing 1960’s but with time we need to evolve similarly, not much was done to APMCs and some problems popped up. Middlemen started exploiting farmers they formed cartels or an understanding among themselves and started buying the produce at MSP only and sold to traders at a high rate. For example, MSP for onion is Rs.8.5 per kg (data as of February 06, 2019) but we buy onions at Rs 35 – 80 per kg depending on state. In a way we can say Minimum Support Prize became Maximum Selling Price. Voice arose from time to time to remove these defects and in response government brought the three Acts in 2020. These three farm Acts seek to replace ordinances issued in June 2020.

These Acts envisage to bring change in some of the key aspects of the farm economy — trade in agricultural commodities, price assurance, farm services including contracts, and stock limits for essential commodities. These Acts sought to bring much needed reforms in the agricultural marketing system such as removing restrictions of private stock holding of agricultural produce or creating trading areas free of middlemen and take the market to the farmer.

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill 2020 or The Market Place Law

We have already discussed the process currently in place well according to the new market place law, farmers can sell their produce anywhere not just in the APMC approved mandis or market places but literally anywhere i.e., they can sell inside the state, outside the state, or if they wish they can also sell it online. Which means according to union government this law is been brought in to give freedom of choice to farmers they will have a variety of marketplaces. The government says, this is actually going to do good to them because they can choose from several options.

The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Bill 2020 or The Contract Farming Law

Farmers can enter into ‘written agreements’ with anyone, including a company, and sell them their produce for a set period of time, as per the contract. In other words, companies can now have contracts with farmers for buying with farmers for buying their produce. They can set the price for the produce, the standards and qualities and other legalities can be mentioned beforehand. The Union government says this will protect and empower farmers to sell to anyone a whole seller, a retail giant or an exporter. They will have written contracts which will protect the farmer in case the buyer tries to cheat them. And they can also sell future produce today, according to the government. 

The Essential Commodities (Amendment) Bill 2020 or Essential Commodities Amendment

Essential Commodities Act was first brought in decades back in 1955. The Act basically controls the production, supply and the distribution of certain commodities that are known to be essential. So if an item comes under this Act for instance a food item or an important drug then companies and supermarkets cannot hoard these items when there is a shortage, they also cannot artificially increase the prices etc. the list of essential commodities as per the original act includes: Drugs (medicines); Fertilizers (inorganic, organic, mixed); Foodstuff (including edible oilseeds and oils); hank yarn made wholly from cotton; Petroleum and petroleum products; Raw jute and jute textiles; Seeds (food crops, fruits and vegetables, cattle fodder and jute seeds). The new amendment has removed food stuff such as Potato, Cereals, Pulses, edible oilseeds and oils, from the list of essential commodities which means unless there is a dire circumstances like a war or famine or an extraordinary price rise these commodities will not be considered under the essential commodities list.

Further, the government cannot impose a stock limit i.e. it cannot stop a supermarket chain or a retailer from hoarding unless there is a 100% (percent) increase in price of perishable goods or 50% (percent) increase in price of non-perishable goods. All items removed from essential commodities act are: Rice, Wheat, Potatoes, Onions, and Oil.

CONTROVERSIES

Everything looks great on paper, but then where does the problem lie? Well there is a difference between good legislation and good implementation of the Act, many critics have raised their concerns regarding this Act. The very first concern is that an Act which is going to be implemented in the whole country has neither been discussed with states which will be most affected by the Act nor with the experts in this field accusing the government of destroying cooperative federalism.

We are witnessing a country wide protest, which is more intense in Punjab, Haryana and Western Uttar Pradesh. The reason is obvious as this region has the most organized form of APMCs. Although there is no provision of removing of APMCs then why are farmers fearing and raising slogans of MANDI BACHAO? APMCs are under state government and are maintained by taxes collected in APMC market’s transaction. Government says in private markets, which can be set up now, no taxes will be charged in the transactions of private market so this would save taxes, all companies and traders will buy farm produce from private markets which will slowly result in the end of APMC because the state government will have no funds to maintain APMC. If this happens states will have a lot of revenue loss and union government has not mentioned any way to compensate them, especially in Punjab and Haryana.

Middlemen will become jobless and there is a concern that there is a possibility of middleman in private sector also because our farmers are not in a position to bargain with corporate houses. In private sector there will be no control and exploitation by middlemen may multiply. (86% farmers of our country are marginalized farmers i.e. they have less than 2 acres of land.) With the end of APMCs, MSP will also practically end this is the most important concern.

We are talking about ‘One nation One market’, ‘freedom of choice of market’ any farmer can sell his farm produce anywhere, looks good on seeing but the ground reality is this already exists and a farmer can sell his produce any where he wishes in any part of country, it does not happen because our farmers do not have medium and money to transport goods from one place to another because government itself says 86% of farmers are marginalized.

Contract farming is looked upon as privatization of farming, two major concerns here are that farmers will never be able to negotiate with the corporate sector. Act does not prescribe or specify that contract price of the crop should be at least equivalent or above the MSP. It means the contractor/companies can pay whatever price they want to the farmer.

Being big private companies, exporters, wholesalers, and processors, they will always have an edge in disputes. Written contract is not mandatory which means farmer will never be able to prove violation of terms of contract. Farmers have a valid point because they have seen privatization in markets of seeds and fertilizers where government believed prices will go down because of competition but results are opposite, and farmers fear the same in this case also.

Limits of hoarding have been removed because the situation of ‘Extraordinary price rise’ is way to high to reach which simply means big private players can any time cause artificial price fluctuation. Not only farmers will be affected by it, consumers will also be affected because the main goal or focus of a private company will be to raise its profits.

WAY FORWARD

Yes, there were many flaws in the decades old APMC Act, but critics believe that the need was to plug the loopholes instead of introducing a new system altogether. A similar system has already been introduced in America and some European countries where it has failed miserably, we can only hope this does not happen in India and government will not repeat those mistakes.

From the attitude of government, the stand of government is very clear that it is not going to change anything because already it has been termed as Masterstroke. Right now, it is just an Act both are results are possible; farmers income becomes double as said by the government, or their conditions worsen as feared by farmers. History is the best judge. While the intent of Government is laudable, we will be able to see the results of these new Acts after few years only. Right now, everything is just a speculation.

References:

1. https://www.thehindu.com/news/national/president-ram-nath-kovind-gives-assent-to-three-farm-bills/article32708467.ece

2. https://www.hindustantimes.com/india-news/the-farm-bills-passed-in-parliament-will-not-only-bring-radical-changes-in-agriculture-sector-but-will-also-empower-farmers-tweets-pm-modi/story-Wsi1df81nxjXQFeAHXPVtI.html

3. https://www.jagran.com/haryana/kurukshetra-bku-shouted-for-kisan-bachao-mandi-bachao-rally-in-protest-against-the-three-ordinances-20658424.html

4.  https://youtu.be/t0bZ17Kcscc

5. https://timesofindia.indiatimes.com/india/what-is-farm-bill-2020-pros-cons-of-three-farm-bills-centre-introduced/articleshow/78180231.cms

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Agricultural Bill 2020 in India: Agricultural Policy and Transition to Sustainable Agriculture and Self-reliance

• First Online: 20 May 2023

Cite this chapter

• Asraful Alam   ORCID: orcid.org/0000-0001-7683-9206 3 ,
• Nilanjana Ghosal 4 ,
• Amir Khan 5 &
• Lakshminarayan Satpati 6  

291 Accesses

1 Citations

In the background of making India self-reliant (Atmanirbhar Bharat), the agricultural sector may play the most effective role than any other sector in India. The task of achieving self-sustainability and self-reliance in agricultural sector depends not only on infrastructural and governance reform, but also on decreasing agri-imports’ bill and more focus on increasing farmer’s income and their self-dependency. Since independence, the agricultural sector of India remained highly regulated by government agencies, but the new agricultural bills that have been passed recently in 2020 mainly aim to free the farmers of our country and to help to rise the income of the farmers making them self-reliant. All the three bills are collectively designed to reduce barriers that diverse agri-food supply chain actors face in connecting to farmers and creating a unified national market “ One Nation—One Market .” The present study has the following objectives: first, to understand and study the newly introduced agricultural bills by discussing their strength and weakness; second, after understating the new agricultural bills to find out the main reason behind the recent ongoing farmer’s protest toward the new farm bills; third, to link the present agricultural policy with the sustainable agriculture and self-reliance. It is observed that the newly introduced agricultural policy has created much confusion among the farmers of our country. Thus, it is suggested that the Government of India should clarify all the fears and confusions of the farmers and guide them well about the new agricultural bills to achieve self-sustainability and self-reliance in the agricultural sector.

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Acknowledgements

I am sincerely indebted to Indian Council of Social Science Research (Ministry of Human Resource Development, New Delhi, 110067, India), for sponsored me Post-Doctoral Fellowship.

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Alam, A., Ghosal, N., Khan, A., Satpati, L. (2023). Agricultural Bill 2020 in India: Agricultural Policy and Transition to Sustainable Agriculture and Self-reliance. In: Alam, A., Rukhsana (eds) Climate Change, Agriculture and Society. Springer, Cham. https://doi.org/10.1007/978-3-031-28251-5_16

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Essay On Farm Bill 2020

Table of Contents

Short Essay On Farm Bill 2020

The Farm Bill 2020 is a comprehensive piece of legislation aimed at providing support to the agriculture sector in India. This bill was passed by the Indian Parliament in September 2020 and replaces the earlier Agriculture Produce Market Committee (APMC) Act of 1963.

The Farm Bill 2020 seeks to provide farmers with greater access to markets, reduce the intermediation of middlemen, and increase the bargaining power of farmers. It aims to achieve this by providing farmers with direct access to consumers and processors, eliminating the need for them to sell their produce through regulated markets. This is expected to increase their income and reduce the cost of marketing their produce.

Another key aspect of the Farm Bill 2020 is the creation of a National Agricultural Market (NAM), an electronic trading platform that will provide a single-point interface for farmers to sell their produce to buyers across the country. This is expected to increase the competitiveness of Indian agriculture and improve the overall efficiency of the sector.

The Farm Bill 2020 also provides for the creation of contract farming arrangements, which will allow farmers to enter into agreements with processors and agribusinesses for the production and supply of agricultural products. This will provide farmers with greater stability and predictability in their income, while also providing processors with a secure source of supply.

In addition, the Farm Bill 2020 seeks to promote the development of the food processing sector, with a focus on value addition, food safety, and the reduction of post-harvest losses. This is expected to increase the competitiveness of Indian agriculture and provide new opportunities for farmers and agribusinesses.

In conclusion, the Farm Bill 2020 is a significant piece of legislation aimed at transforming the Indian agriculture sector. With a focus on increasing the bargaining power of farmers, improving market access, and promoting the development of the food processing sector, the Farm Bill 2020 seeks to create a more sustainable and profitable agriculture sector in India.

Long Essay On Farm Bill 2020

Agriculture has been a key part of our society since the very beginning. In 2020, Farm Bill 2020 was signed into law to provide new opportunities for farmers in the United States. This essay will discuss the impact Farm Bill 2020 had on agriculture, from its positive effects to some of its potential drawbacks. Read on to learn more about this important piece of legislation and how it’s changed the way farmers do business!

Introduction to the Farm Bill 2020

The Farm Bill 2020 is a United States federal law that governs agricultural and food policy. It was signed into law by President Donald Trump on December 20, 2018. The bill replaces the 2014 Farm Bill and includes provisions regarding farm subsidies, food assistance, rural development, and agricultural research.

The Farm Bill is renewed every five years or so and the last one was in 2014 before this new one in 2020. The bill authorizes programs like SNAP (Supplemental Nutrition Assistance Program) as well as farm subsidies. It also funds other initiatives like support for beginning farmers, veteran farmers, and racial minority farmers. The bill covers topics such as conservation, trade, nutrition, credit, animal health, crop insurance, and more .

The 2020 Farm Bill includes some major changes from the 2014 version. Most notably, it legalizes industrial hemp production in all fifty states, allowing farmers to cultivate and sell hemp products for the first time. It also expands access to broadband internet in rural areas, strengthens crop insurance and conservation programs, and provides additional money to support organic agriculture. The bill also sets up a pilot program to allow states to regulate their own labeling of genetically modified foods.

Overall, the new Farm Bill is an important piece of legislation that will have a significant impact on American agriculture and food policy for many years to come.

Overview of the Farm Bill 2020

The Farm Bill 2020 is the most recent comprehensive agricultural and food policy legislation passed by the United States Congress. The bill covers a wide range of programs and issues, including farm subsidies, food assistance, rural development, agriculture research, and more.

The Farm Bill is renewed every five to seven years, and the 2020 version is the second one since the 2014 Farm Bill. The new bill was signed into law by President Donald Trump on December 20, 2019.

Here’s an overview of some of the key provisions in the Farm Bill 2020:

-Farm subsidies: The bill continues to provide subsidies to farmers, though with some changes from previous versions. For example, there is now a greater emphasis on subsidizing farmers who grow crops for biofuel production. -Food assistance: The bill includes several programs that provide food assistance to low-income Americans, such as the Supplemental Nutrition Assistance Program (SNAP). The bill also expands a program that provides free meals to children during the summer months when school is not in session. -Rural development: The bill includes funding for initiatives that aim to improve economic conditions in rural areas, such as providing grants for broadband internet access in rural areas. -Agriculture research: The bill provides funding for agricultural research through both public and private entities. -Environmental conservation: The bill includes several measures aimed at promoting environmental conservation, such as increasing funding for conservation programs that help farmers reduce soil erosion and protect water quality.

Overall, the Farm Bill 2020 is a comprehensive piece of legislation that seeks to address a wide range of issues related to agriculture and food policy.

Benefits of the Farm Bill 2020

The Farm Bill 2020 was a much-needed relief package for farmers across the United States. The bill provided financial assistance to farmers who were struggling to make ends meet, as well as to those who were facing foreclosure on their farms. The bill also included provisions for infrastructure improvements and for the development of new agricultural technologies.

Challenges Faced by Farmers Due to the Farm Bill 2020

The Farm Bill 2020 was a highly anticipated piece of legislation that would provide farmers with much-needed relief from the Trump administration’s tariffs. However, the bill has been met with criticism from some farmers who say it does not do enough to help them. Here are some of the challenges faced by farmers due to the Farm Bill 2020:

1. The bill does not address the issue of tariffs.

Farmers have been hit hard by the Trump administration’s tariffs on imported goods, and many were hoping that the Farm Bill would provide some relief. However, the bill does not address this issue directly. This means that farmers will continue to face higher costs for inputs like machinery and equipment, as well as export markets for their products.

2. The bill includes cuts to crop insurance programs.

The Farm Bill includes cuts to crop insurance programs that help farmers manage risk. These cuts could leave farmers vulnerable to losses in the event of a bad year or natural disaster.

3. The bill fails to address consolidation in the agriculture industry.

The Farm Bill does nothing to address consolidation in the agriculture industry, which has left many small and medium-sized farms struggling to compete against large corporate agribusinesses. This consolidation has put pressure on prices and incomes for farmers across the country.

How States are Responding to the Farm Bill 2020

The Farm Bill 2020 was passed by the US House of Representatives on January 1st, 2020 and is awaiting approval from the Senate. The bill includes several provisions that would provide financial assistance to farmers, including direct payments, crop insurance, and disaster relief. It also includes a number of reforms that would address issues such as food security, environmental sustainability, and rural development.

States are responding to the Farm Bill 2020 in a variety of ways. Some states, such as California and Illinois, have already begun to implement some of the provisions in the bill. Others, such as Texas and Nebraska, are still in the process of considering how to best take advantage of the opportunities afforded by the bill. And still others, such as Wyoming and Montana, have yet to take any action on the bill.

Regardless of where each state stands on implementation, there is broad agreement that the Farm Bill 2020 will have a positive impact on agriculture and rural communities across the United States.

Economic Impact of the Farm Bill 2020

The Farm Bill 2020 was a $867 billion package of legislation that was signed into law by President Trump in December of 2020. The bill includes many different provisions, but one of its main goals is to provide financial assistance to farmers and ranchers. The bill does this by providing direct payments, subsidies, and loan programs to those in the agricultural industry.

The Farm Bill 2020 has been criticized by some for its high cost and for its lack of reform. However, the bill does provide much needed assistance to an industry that has been struggling in recent years. In addition, the bill includes several provisions that will help to create jobs and spur economic growth. Overall, the Farm Bill 2020 is a positive piece of legislation that will have a positive impact on the economy.

The Farm Bill 2020 is a groundbreaking piece of legislation and will be sure to provide relief, support, and opportunity for farmers across the United States. This bill has provided numerous benefits that are sure to improve the lives of many Americans by making it easier for them to access food at an affordable price, providing financial assistance during difficult times, and helping farmers stay in business. The positive impact that this bill is certain to have on our nation’s economy cannot be understated as it provides a much-needed boost for rural communities. With its passing, we can only hope that the Farm Bill 2020 continues to prove itself beneficial and help bring some stability to farming operations throughout America.

Manisha Dubey Jha is a skilled educational content writer with 5 years of experience. Specializing in essays and paragraphs, she’s dedicated to crafting engaging and informative content that enriches learning experiences.

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Benefits of Farm Bill 2020, Essay on farm bill benefits, Agriculture bill 2020 benefits, Farmer bill 2020 benefits

Farm bill 2020 benefits, need for pro-farmer reforms:.

• Fragmented Markets
• Insufficient Markets
• Market Fees and Charges
• Inadequate Infrastructure
• Post-Harvest Losses
• Restriction in Licensing
• High Intermediation Costs
• Information Asymmetry
• Inadequate Credit Facilities

Benefits of farm bill 2020

• Now farmers have freedom of choice to sell their produce in APMC mandi or choose any other seller. Now they have multiple options to sell their products.
• Now famers can fix/bargain price for their price produces at their door-step. Earlier once produce brought to mandi farmer has to accept whatever price is offered.
• Earlier there were long chain of intermediaries but now there will be minimum or no intermediary.
• Now rural farm youth will get opportunity trade and run supply chain earlier there were no opportunity for farm youth to trade agri commodities.
• Earlier freedom to sell fruits and vegetables outside of APMC mandi existed in some states but now this freedom is extended to all agri produce and all over the country.
• Earlier small land holders did not have scale and bargaining power in input and output markets but now they are empowered to access modern input, services and protection against price risk. Farmer Producer Organizations help small farmers' organize for better bargaining power.
• Contract farming is now nationally enabled and on terms favourable to farmers earlier contract farming was restricted only to some pockets.
• Now farmers will be partners in value chain earlier farmers were not part of value chain.
• Now export competitiveness will increase and farmers will be benefited. Earlier exports were getting uncompetitive due to long chain of intermediataries.

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• Farm Bill 2020
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Farm Laws 2020 : a critical analysis

This article is written by Tanya Malhotra, from Fairfield Institute of Management and Technology.

Table of Contents

Introduction

Agriculture with its combined sector is the largest source of income in India as 70% of its rural household still depends primarily on agriculture, we all know our farmers are protesting against three Acts passed by the parliament of India and Acts got assent from the president of India Mr. Ram Nath Kovind on 27 September 2020 and these Acts are “The farmers (empowerment and protection) agreement on price assurance and farm services Act, 2020”, The farmers’ produce trade and commerce (promotion and facilitation) Act, 2020” and “The essential commodities Act, 2020”. These Acts are facing some criticism which led to protest against them and agitated farmers wanted them to be repealed as they think it will not double the income of farmers but fill the pockets of corporations instead. Not only these three Acts are facing criticism but there is one more bill which has bought the attention of farmers and that bill is electricity (amendment) bill, 2020, farmers are demanding these bill and Acts to be taken back as it is nothing but a bait set by the government so that big corporation will have more profit.

Farmers (Empowerment and Protection) Agreement on Price and Assurance and Farm Services Act, 2020

It allows farmers to trade inter-state and intra-state beyond the premises of the APMC (agricultural produce market committee) market and the state government cannot put a tax on it which we call mandi tax. 

Price of farming produce 

Price should be mentioned in the agreement and if the price is subjected to vary then a guaranteed price must be mentioned or a clear reference for any additional amount above it should be mentioned. 

Farming agreement and it’s tenure/validity 

The farming agreement is defined under section 3 in chapter 2 of the Act. A farmer may enter into a written agreement of any particular farming produce and such agreement must include the following: 

• Terms and conditions for the supply of that produce; 
• Time of supply; 
• Quality, grade, standards, price, and such other matters; and 
• Terms related to the supply of farms services.

Responsibility will be on the sponsor or farm service provider for its compliance. 

VALIDITY :  minimum  one crop season to  maximum  5 years it may extend on the discretion of farmer and sponsor by mutual decision and should be explicitly mentioned in the agreement. 

Dispute Resolution Mechanism

Firstly the matter will be heard at  the conciliation   board  and if the dispute fails to be set aside by the board within 30 days under the conciliation process from the date of filling and giving reasonable opportunity of being heard then such party may approach  sub-divisional authority . Every order by the sub-divisional authority will have the same force as a decree of a civil court under the code of civil procedure, 1908 unless an appeal is preferred. 

If the conciliation board and the sub-divisional authority are unable to settle the dispute then parties may move to  the appellate authority  which shall be presided by the collector or additional collector (appointed by the collector) within 30 days from the date of such order. The authority shall dispose of the case within 30 days and they have the same effect and enforceability as that of a decree under code of civil procedure, 1908 with all the powers such as compelling the discovery and production of the document, attendance of witnesses, etc. 

PENALTY : magistrate or appellate authority may impose a fine on the party contravening the agreement. No action against the agricultural land of farmers for recovery of any dues.

Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020  

The act allows intra-state and inter-state trade of farmer’s produce outside physical premises run by market committees under the APMC Act and other markets under the APMC Act. 

Trade can be conducted in outside trade areas such as farm gates\factory premises\warehouse\silos and cold storage or any place of production\collection and aggregation of produce.

It also provides electronic trading of scheduled farmer’s produce in the specified trade area, it will be done by  online buying and selling  of products with electronic devices on the internet. 

Who can establish and operate

• Companies, partnership firms, or registered societies having permanent and mandatory account numbers under the Income Tax Act, 1961. 
• Agricultural cooperative society or farmer producer organization . 

Payment process  

Every trader shall make the payment for traded scheduled farmers’ produce on  the same day  or  maximum of three days ; if procedurally required to the subject of condition for the receipt of delivery mentioning payment also should be on the same day.

Who can establish and operate the electronic trading and transaction platform 

• Any person , having permanent account number given under the income tax Act, 1961, or other document notified by the central government; 
• Farmer producer organization; and 
• Agricultural co-operative society. 

Duties of establisher or operator 

• Shall prepare and implement guidelines for free trade practice 
• Guidelines for fees 
• Guidelines for technical parameters 
• Guidelines for logistic arrangements 
• Quality assessment 
• Timely payment 
• Dissemination guidelines in local language  

Market fee under state APMC Act 

No market fee or cess or levy shall be levied on any farmer\trader or electronic trading and transaction platform under any state APMC Act. 

Dispute Resolution Mechanism 

In case of dispute arise then both the parties may seek a mutually acceptable solution through  conciliation  by applying to the sub-divisional magistrate who will refer the case to the conciliation board and that to be appointed by him by facilitating the binding settlement. The board must have a chairperson and members not less than 2 and not more than 4 as sub-divisional magistrate may deem fit. 

If they fail to set the dispute then to  sub-divisional authority  and he shall decide the dispute within 30 days from the date of filing and after giving reasonable opportunity of being heard. 

• Pass an order of recovery of the amount; 
• Impose a fine\penalty, he will be liable to pay not more than 25000 but which may extend up to 5 lakhs; or
• Pass an order of restraining. 

The party aggrieved by sub-divisional authority’s order may prefer an appeal before  appellate authority  means collector or additional collector appointed by the collector and within 30 days matter should be disposed of from the date of filing.   

Essential Commodities (Amendment) Act, 2020 

Regulation of food items .

Before this amendment central government had the power to regulate prohibit the production, supply, distribution, trade, and commerce of essential commodities such as oilseeds, onion, potatoes, etc., but now through this amendment, the central government can  only  regulate them under  extraordinary circumstances  such as war\famine\extra ordinary price rise\natural calamity of grave nature.

Stock limit 

The stock limit must be based on the price rise. To implement a stock limit there are two conditions: 

• 100% increase  in the retail price of horticulture produce. 
• 50% increase  in the retail price of non-perishable agricultural food items. 

The increased calculation will be prevailing immediately preceding 12 months or average retail price from the last 5 years, whichever is lower. 

The essential commodities Act, 1955 was brought in India when we were not self-sufficient in food production but now we have a surplus in most commodities and the amendment plays an important step to: 

• Double the farmer’s income, and
• Ease of doing business. 

So far we have talked about the analysis of these Acts now, we will discuss their criticism and what are the loopholes that have been left behind in these 3 Acts. 

The Central government passed these three Acts through ordinance while having voice votes they did not pass them through its normal way so these Acts are facing many dissents. Here is some main criticism about these Acts that have been disclosed by many experts and farmers themselves so far which led to major protests. Also, many critics have said that it is not a union subject but a state subject and it is up to those to decide what will be best suited for their farmers’ income. Both state and union have the power to control the production, distribution, and products of the industry including agriculture under concurrent list entry 33 of the constitution. But agriculture is under state list entry-level 14. 

These are some main criticisms: 

No mentioning on MSP 

Minimum support price, the assurance of MSP in these Acts are almost blurred as in the Act there is no mention for MSP but the government keeps on saying that no one is going to deprive farmers of MSP. This lack of mentioning MSP is leading a big criticism as without this price assurance farmers can be exploited by the private companies because the price would not be set or we can say the minimum price will not be their due to which private company will bargain with farmers and farmers will end up selling produce at the lowest price even that low which they will get from the government under MSP.

Abolished mandi tax 

These Acts abolish the tax or levy and prevail free market, whereas APMC used to charge 4.5% to 8% as mandi tax but now due to this change government will face loss in revenue as now there would not have any mandi tax in these new reforms as there will be no mandi outside the premises of APMC, and it is a major drawback as due to covid-19 we are already facing a huge loss. 

“NO MANDI = NO TAX = NO REVENUE”

Indirectly destroying APMC market  

By adding private companies under the agrarian sector APMC will end up becoming a second option for farmers, what is required is the strengthening of the existing APMC market. Political leader Sharad Pawar has also stated that we need reforms in the APMC market and for that, we have discussed it many times with the government about it and even wrote the letter but destroying the APMC market was never their choice. Scrapping the APMC market will attract incapability under the agrarian market as small farmers will not be able to attract corporations and mandi will end becoming their last resort and if mandi will also not be there then they would be left with nothing.

No civil jurisdiction 

These Acts provide that no civil court has the jurisdiction to hear the matter related to these Acts as for that conciliation board, sub-divisional magistrate and appellate authority (sub-divisional authority) have empowered for that. So, in this regard the government has to think twice as our country still faces corruption (under the table) and big corporations will easily bribe sub-divisional magistrates and farmers will not get justice.

What positive outcome will these Acts bring

Prime Minister Narendra Modi while addressing the nation said that these three Acts will prevail competition under the agrarian market and these are the revolutionary reforms which will bring a major change in the agricultural market by changing its reform and changing its old behavior, now every farmer will have a right to move outside the APMC premises to sell their produce, they are not just stuck to the only market they can move freely and decide on their own that whom they want to sell and where they are getting the best price and they do not even have to pay tax i.e., mandi tax. 

Under APMC there was limited trader’s operation which led to cartelization and reduction in competition and due to this we were not able to grow the agricultural market the way we should have. These three Acts will help with two factors: 

• Due to private investment economy will grow rapidly and attract foreign investment which will lead to building the trust of investors under the agrarian market; 
• And most importantly helps to double the farmers’ income.

Traders, commission agents, and other functionaries used to organize into the association by themselves, lead to restricting the entry of a new person into the market so that it also has been curbed under these Acts by lowering the state intervention and moving it to broader view by going outside the premises of market transaction. 

These Acts need some reformation which I have already explained under the criticism part  (see here)  but otherwise it Act can bring a revolution under the agricultural market. And, on top of it if we regulate the Swaminathan report with this act it will come as a great move by the government. 

Swaminathan report 

The national commission on farmers which was chaired by Professor M.S Swaminathan gave five reports through the period of 2004-2006 in which there were some recommendations which can lead to a better agricultural environment and these can help the Acts to become more solid. So these recommendations are: 

• Distribute ceiling-surplus and wastelands.
• Prevent digression of prime agricultural land and forest to corporate for non-agricultural purposes.
• Ensure grazing rights and seasonal access to forests to tribal and pastoralists, and access to common property resources.
• Establish a National Land Use consulting service, which might have the capacity to link land-use decisions with ecological meteorological and marketing factors on a location and season-specific basis.
• Set up a mechanism to manage the sale of agricultural land, supported quantum of land, nature of proposed use, and category of buyer.

For further reading of this committee  (see here ).

Conclusion 

So we can conclude by saying that agriculture plays an important role in our country to become “atma nirbhar” and for that to happen it is important to strengthen the agrarian sector and for which three acts passed by the parliament of India but they are facing some criticism due to their loopholes as those loopholes can bring nothing but corporate nirbhar India but if we can reform them in a way that those loopholes will repeal then these Acts can bring a good change in the society. 

References 

• https://www.prsindia.org/billtrack/farmers-empowerment-and-protection-agreement-price-assurance-and-farm-services-bill-2020
• https://www.prsindia.org/billtrack/farmers-produce-trade-and-commerce-promotion-and-facilitation-bill-2020
• https://www.prsindia.org/billtrack/essential-commodities-amendment-bill-2020
• https://www.prsindia.org/report-summaries/swaminathan-report-national-commission-farmers#:~:text=The%20National%20Commission%20on%20Farmers%20(NCF)%20was%20constituted%20on%20November,in%20the%20Common%20Minimum%20Programme
• http://www.fao.org/india/fao-in-india/india-at-a-glance/en/
• https://www.timesnownews.com/india/article/sharad-pawar-admits-to-seeking-changes-as-agriculture-minister-in-apmc-act-and-allowing-entry-of-private-sector/691934
• https://www.latestlaws.com/articles/a-critical-analysis-of-the-farm-bills-2020/

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Essay Curve

Essay on Farm Bill 2020 – Short Essay & Long Essay upto 1500 Words

Essay on Farm Bill 2020: The Farm Bill 2020 is a significant piece of legislation that impacts the agricultural sector in the United States. This comprehensive bill addresses a wide range of issues, including crop insurance, conservation programs, nutrition assistance, and support for rural development. In this essay, we will explore the key provisions of the Farm Bill 2020, its implications for farmers and consumers, and the debates surrounding its passage. By understanding the complexities of this legislation, we can better appreciate its importance in shaping the future of American agriculture.

Farm Bill 2020 Essay Writing Tips

1. Introduction: Start your essay by providing an overview of the Farm Bill 2020. Mention its significance and impact on the agricultural sector in the United States.

2. Background: Provide a brief history of farm bills in the United States and explain why they are important for farmers and the agricultural industry.

3. Key provisions of the Farm Bill 2020: Discuss the main provisions of the Farm Bill 2020, such as crop insurance, commodity programs, conservation programs, and nutrition assistance programs.

4. Impact on farmers: Explain how the Farm Bill 2020 will impact farmers across the country. Discuss how it will help them manage risks, improve productivity, and access new markets.

5. Impact on the environment: Highlight the conservation programs included in the Farm Bill 2020 and discuss how they will help protect natural resources and promote sustainable farming practices.

6. Impact on nutrition assistance programs: Discuss the changes to nutrition assistance programs, such as SNAP, included in the Farm Bill 2020. Explain how these programs will help address food insecurity and improve access to healthy food for low-income families.

7. Criticisms and controversies: Address any criticisms or controversies surrounding the Farm Bill 2020. Discuss concerns raised by stakeholders and potential areas for improvement.

8. Conclusion: Summarize the key points of your essay and reiterate the importance of the Farm Bill 2020 for the agricultural sector in the United States. Discuss the potential long-term impact of the bill on farmers, the environment, and food security.

9. Writing tips: – Use clear and concise language to convey your ideas effectively. – Provide evidence and examples to support your arguments. – Structure your essay with a clear introduction, body paragraphs, and conclusion. – Use transitions to connect your ideas and make your essay flow smoothly. – Proofread your essay to check for any errors in grammar, punctuation, or spelling.

Essay on Farm Bill 2020 in 10 Lines – Examples

1. The Farm Bill 2020 is a comprehensive piece of legislation that sets the policies and funding for various agricultural programs in the United States. 2. It is updated every five years and covers a wide range of issues including crop insurance, conservation, nutrition assistance, and rural development. 3. The Farm Bill 2020 allocates billions of dollars in funding to support farmers, ranchers, and rural communities. 4. It includes provisions to help farmers manage risk, improve conservation practices, and access new markets. 5. The bill also addresses food assistance programs such as SNAP (Supplemental Nutrition Assistance Program) and school meal programs. 6. It aims to promote sustainable agriculture practices, protect natural resources, and support the next generation of farmers. 7. The Farm Bill 2020 has a significant impact on the economy, environment, and food security of the country. 8. It is the result of a lengthy legislative process involving input from various stakeholders, including farmers, industry groups, and environmental organizations. 9. The Farm Bill 2020 was signed into law by President Donald Trump in December 2018 and will remain in effect until 2023. 10. Overall, the Farm Bill 2020 plays a crucial role in shaping the future of agriculture in the United States.

Sample Essay on Farm Bill 2020 in 100-180 Words

The Farm Bill 2020 is a comprehensive piece of legislation that addresses various aspects of agriculture and rural development in the United States. It provides funding for various programs such as crop insurance, conservation, nutrition assistance, and research. The bill also includes provisions to support farmers, ranchers, and rural communities, as well as promote sustainable agriculture practices.

One of the key components of the Farm Bill 2020 is the reauthorization of the Supplemental Nutrition Assistance Program (SNAP), which provides food assistance to low-income individuals and families. The bill also includes funding for programs that support farmers markets, local food systems, and organic agriculture.

Overall, the Farm Bill 2020 aims to support the agricultural industry, promote food security, and protect natural resources. It plays a crucial role in shaping the future of agriculture in the United States and ensuring the well-being of farmers and rural communities.

Short Essay on Farm Bill 2020 in 200-500 Words

The Farm Bill 2020 is a comprehensive piece of legislation that governs various aspects of agriculture and food policy in the United States. It is a crucial piece of legislation that impacts farmers, ranchers, consumers, and the environment. The Farm Bill is typically renewed every five years, and the most recent version was signed into law in December 2018.

One of the key components of the Farm Bill 2020 is the reauthorization of various agricultural programs and subsidies. These programs provide financial assistance to farmers and ranchers, helping them to manage risk, improve productivity, and protect the environment. The Farm Bill also includes provisions for nutrition assistance programs, such as the Supplemental Nutrition Assistance Program (SNAP), which helps low-income individuals and families access healthy food.

Another important aspect of the Farm Bill 2020 is its support for conservation programs. These programs help farmers and ranchers implement practices that protect soil, water, and wildlife habitat. The Farm Bill provides funding for programs such as the Conservation Reserve Program (CRP) and the Environmental Quality Incentives Program (EQIP), which help farmers implement conservation practices on their land.

The Farm Bill 2020 also includes provisions for rural development programs, which help support economic development in rural communities. These programs provide funding for infrastructure projects, business development, and job training programs in rural areas. By investing in rural development, the Farm Bill helps to create economic opportunities and improve the quality of life for rural residents.

In addition to these key components, the Farm Bill 2020 also includes provisions for crop insurance, research and extension programs, and international trade. These provisions help to support the agricultural industry, promote innovation, and expand market opportunities for farmers and ranchers.

Overall, the Farm Bill 2020 is a critical piece of legislation that impacts every aspect of the agricultural industry. By providing support for farmers, ranchers, and rural communities, the Farm Bill helps to ensure a stable and sustainable food supply for all Americans. It is essential that policymakers continue to prioritize the needs of farmers and ranchers in future Farm Bill negotiations, in order to support a thriving agricultural industry and a healthy food system for years to come.

Essay on Farm Bill 2020 in 1000-1500 Words

The Farm Bill of 2020 is a comprehensive piece of legislation that addresses various aspects of agriculture and food policy in the United States. It is a critical piece of legislation that impacts farmers, consumers, and the environment. The Farm Bill is typically passed every five years and is one of the most important pieces of legislation for the agricultural sector in the United States.

The Farm Bill of 2020 includes several key provisions that impact farmers and consumers. One of the most significant provisions of the Farm Bill is the reauthorization of various programs that provide financial assistance to farmers. These programs include crop insurance, commodity programs, and conservation programs. These programs help farmers manage risk, stabilize farm income, and protect the environment.

Another important provision of the Farm Bill is the nutrition assistance program, which provides food assistance to low-income individuals and families. This program, known as the Supplemental Nutrition Assistance Program (SNAP), helps millions of Americans access healthy and affordable food. The Farm Bill of 2020 includes provisions that strengthen and improve the SNAP program, ensuring that vulnerable populations have access to the food they need.

The Farm Bill of 2020 also includes provisions that support rural development and agricultural research. These provisions help rural communities thrive, support agricultural innovation, and promote sustainable farming practices. The Farm Bill includes funding for programs that support rural infrastructure, such as broadband access and rural water systems. It also includes funding for agricultural research and extension programs that help farmers adopt new technologies and practices.

One of the key provisions of the Farm Bill of 2020 is the conservation title, which includes programs that help farmers protect and conserve natural resources. These programs help farmers implement conservation practices on their land, such as cover cropping, crop rotation, and wetland restoration. The Farm Bill also includes funding for programs that help farmers reduce greenhouse gas emissions and adapt to climate change.

Overall, the Farm Bill of 2020 is a critical piece of legislation that impacts farmers, consumers, and the environment. It provides financial assistance to farmers, ensures that vulnerable populations have access to healthy food, supports rural development, and promotes sustainable farming practices. The Farm Bill is a key tool for ensuring a strong and resilient agricultural sector in the United States.

In conclusion, the Farm Bill of 2020 is a comprehensive piece of legislation that addresses various aspects of agriculture and food policy in the United States. It includes provisions that support farmers, consumers, and the environment, and plays a critical role in ensuring a strong and resilient agricultural sector. The Farm Bill of 2020 is an important piece of legislation that impacts the lives of millions of Americans and plays a key role in shaping the future of agriculture in the United States.

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Essay on New Farm Bill 2020 | Pros & Cons | Impact on Farmers | 100, 150, 200, 300 & 400+ words

The agricultural sector is the backbone of our economy, and farmers are an essential part of it. The New Farm Bill 2020 has been a hot topic in recent times, raising questions about its impact on the farming community . As school students, it’s important to understand how this bill affects the lives of those who grow our food and nourish us. Here are short and long essays on New Farm Bill 2020 In this essay, we explore whether or not the New Farm Bill 2020 is truly in favour of farmers and what changes it brings for them. We will further explore everything you need to know about the new Farm Bill 2020 including its three farm laws, reasons for enacting them, as well as pros and cons at the end of this page.

Essay on New Farm Bill 2020- 100 words

The New Farm Bill 2020 has caused a lot of talking and arguing. There have been different opinions among policymakers, economists, and farmers. Actually, this law wants to make big changes in the farming industry. Some people don’t like it, but it also has good things for farmers. It brings in new rules that help farmers reach more markets. It will allow farmers to work with companies through contracts and talk directly to agribusiness companies. The law also promises to make farmers earn more money and make the farming world fairer and more competitive. In the end, the New Farm Bill 2020 can help farmers have better lives and succeed more.

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Farm Bill 2020 Essay- 150 words

The New Farm Bill 2020 has led to discussions about how important it is for farmers. Some people don’t agree with this law but some say that it has good things for farmers. It wants to make big changes in farming. The changes can help farmers earn more money and make farming fairer and more competitive. The bill’s supporters say that it will solve the problems like middlemen taking advantage of farmers and limited choices in markets. The New Farm Bill 2020 introduces ways to make sure that farmers get fair prices for their products. They can sell their crops in places other than the usual markets. The bill also encourages the development of important things like storage facilities and places to process crops, which can reduce how much is wasted after harvest. However, some critics worry that big companies might take advantage of small-scale farmers. But those in favour of the bill think that it will bring better farming practices. It will help to introduce more use of technology, and more investment in farming. The goal is to create an environment where farmers can do well, produce more, and have a better life overall. In conclusion, the New Farm Bill 2020 has the potential to help farmers in a positive way. It can give them better chances in the market, fair prices for their crops, and improved infrastructure for their work.

Essay on is New Farm Bill 2020 in Favor of Farmers for School Students- 250 words

The debate over whether the new Farm Bill 2020 is in favour of farmers has been ongoing since its introduction. While some argue that it provides much-needed reforms to the agriculture sector, others believe that it fails to address many crucial issues The bill aims to provide more autonomy to farmers by allowing them to sell their produce outside the Agricultural Produce Market Committee (APMC) mandis. However, critics believe that this move will lead to the exploitation of small-scale farmers by big corporations. Moreover, the removal of the Minimum Support Price (MSP) might also harm the interests of small farmers who rely on government support prices for their produce. On the other hand, proponents argue that the bill provides much-needed reforms in agricultural marketing and procurement practices. Farmers can now directly sell their products without any intermediaries and get better prices for their crops. While both sides have valid arguments, only time will tell whether the new Farm Bill 2020 proves beneficial or detrimental to small-scale farmers. One key aspect of the bill is the provision for contract farming, which allows farmers to enter into agreements with buyers before sowing their crops. Supporters argue that this will provide greater market access and certainty for farmers, while critics claim that it may lead to exploitation by powerful corporations. Another controversial issue is the removal of government-mandated minimum prices for certain crops. While proponents argue that this will allow market forces to determine fair prices and reduce government interference, opponents fear that small-scale farmers may be left vulnerable without a safety net. Overall, there are valid arguments on both sides regarding whether or not the new Farm Bill 2020 truly benefits farmers. It remains to be seen how these changes will impact agricultural practices and livelihoods across India in years to come.

Essay on is New Farm Bill 2020 in Favor of Farmers for School Students- 300 Words

The New Farm Bill 2020 has been a subject of intense debate regarding its impact on farmers. This bill introduces significant changes in the agricultural sector and holds the potential to benefit farmers in several ways. The bill aims to empower farmers by providing them with improved market access. It will provide contract farming opportunities and direct engagement with agribusiness companies. One of the key advantages of the New Farm Bill 2020 is the enhanced market access it offers to farmers. The bill allows farmers to sell their products beyond traditional mandis. It enables farmers to explore new market opportunities. This opens up avenues for better price realization and reduces their dependency on intermediaries, potentially increasing their income. Another notable aspect of the bill is the provision for contract farming. It encourages farmers to enter into contractual agreements with agribusiness companies, providing them with assured buyers for their produce. This can help reduce market risks and provide stability to farmers, ensuring a steady income stream. Furthermore, the New Farm Bill 2020 emphasizes the creation of essential infrastructure for agricultural storage and processing. This infrastructure can help reduce post-harvest losses, which have been a major concern for farmers. By improving storage and processing facilities, the bill aims to enhance the value of farmers’ produce and minimize wastage, thereby increasing their profitability. While there have been concerns raised by critics about the potential exploitation of small-scale farmers by large corporations, the bill also includes provisions to safeguard farmers’ interests. It establishes mechanisms for dispute resolution and contract enforcement, ensuring that farmers are protected in their engagements with agribusiness companies. In conclusion, the New Farm Bill 2020 presents several advantages for farmers. It offers improved market access, contract farming opportunities, and the creation of essential infrastructure. While there are differing opinions on its overall impact, the bill aims to empower farmers, enhance their income, and create a more competitive and transparent agricultural ecosystem. It holds the potential to positively transform the lives of farmers and contribute to the growth and prosperity of the agricultural sector.

Long Essay on New Farm Bill 2020 – 500+ words

Introduction

The new Farm Bill 2020 has been a topic of intense debate in India since it was passed by the central government. The bill aims to bring about major agricultural reforms and improve the livelihoods of farmers across the country. However, it has also sparked protests and controversy among farmers who fear that their rights may be compromised.

What is the New Farm Bill 2020?

The New Farm Bill 2020 is a set of three agricultural laws that were passed by the Indian government in September 2020. The laws aim to bring about significant reforms in the agricultural sector and improve farmer livelihoods. The first law allows farmers to sell their produce outside of state-regulated Agricultural Produce Market Committees (APMCs) which previously held monopolies over such sales. This opens up new markets for farmers, allowing them greater flexibility in selling their crops. The second law permits contract farming agreements between farmers and private entities, ensuring greater price stability and predictable demand for farm products. It also protects small-scale farmers from exploitation by larger corporations through safeguards against default or unfair contracts. The third law seeks to remove restrictions on stockpiling food commodities such as rice, wheat, pulses etc., enabling private traders to purchase them at competitive prices directly from farmers without any regulation. These three laws represent an ambitious attempt to transform India’s agriculture industry into a more modernized system that benefits both the government and its citizens alike.

Three Farm Laws

The three farm laws that have stirred up a storm in India are the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Act, 2020, the Essential Commodities (Amendment) Act, 2020, and The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Act, 2020. The first law aims to facilitate barrier-free trade of farmers’ produce outside the physical premises of the Agricultural Produce Market Committee mandis. It allows farmers to sell their crops anywhere in the country without any license or registration with APMC traders. The second law amends the Essential Commodities Act, which empowers the central government to regulate essential commodities like food items during extraordinary situations such as war or famine. With this amendment, stock holding limits will be imposed only under exceptional circumstances such as natural calamities or steep price rises. The third law promotes contract farming by allowing farmers to enter into agreements with agribusiness firms for the sale of future agricultural produce at a pre-agreed price. This act gives farmers an option to negotiate prices directly with processors rather than selling through intermediaries at APMC mandis. These laws aim to give freedom and flexibility to Indian farmers while promoting investment in rural areas. However, some stakeholders fear that it may lead to exploitation by big corporates leading ultimately towards farmer distress.

Reason for Enacting the Laws

The main reason behind enacting these laws was to bring about significant reforms in the agricultural sector of India. Creating a Free Market for Farmers- One of the primary objectives of these laws is to provide a free market for farmers to sell their produce outside traditional mandis or markets run by state governments. This enables farmers to sell their crops at higher prices, avoiding intermediaries who may exploit them. Promoting Contract Farming- Additionally, the new laws aim to promote contract farming, where farmers can enter into agreements with private companies before sowing crops. This gives them access to better technology and resources while also providing guaranteed prices for their produce.

Facilitating Electronic Trading Platforms

Furthermore, another objective is promoting electronic trading platforms that allow farmers across India easy access without being physically present in mandis. It helps eliminate middlemen and enables more transparent price discovery mechanisms. Boosting Farmer’s Income and Sector Development The rationale behind passing such pivotal legislation is aimed towards boosting farmers’ income through greater efficiency and transparency within agriculture production marketing with an eye on long-term growth and development of this crucial sector.

Reasons Behind Farmers’ Protest Concerns Over Minimum Support Price (MSP)

The farmers’ protest in India has gained momentum, and it’s essential to understand the reasons behind it. Firstly, the farmers fear that the new laws would lead to an end of the Minimum Support Price (MSP), which is a safety net for them. The MSP assures a fixed minimum price for their crops, irrespective of market fluctuations.

Vulnerability of Small-Scale Farmers

Secondly, small-scale farmers are concerned about losing their lands as they lack bargaining power against large corporations. The new laws allow contract farming and direct sale agreements between agribusinesses and farmers without any regulation, making small-scale farmers vulnerable to exploitation by large corporations.

Favouritism towards Big Corporations

Thirdly, many believe that these laws favour big corporations over small-scale farmers. As per the new acts, private players can stockpile agricultural produce leading to hoarding and black-marketing activities affecting food security.

Lack of Consultation and Mistrust

There are concerns regarding the federal government’s intent in enacting these three farm bills hastily without consulting with stakeholders like farmer unions or state governments. This has led to mistrust among farmers who feel left out of decision-making processes concerning their livelihoods.

Importance of Understanding the Farmers’ Protest

Understanding why Indian farmers have been protesting is crucial since agriculture employs almost half of India’s population, contributing 17% of its gross domestic product (GDP). It’s important now more than ever for all parties involved in this matter—government officials, agribusiness representatives, and leaders within society at large, including those involved with agriculture themselves—to work together towards finding common ground while respecting everyone’s interests from both sides, so we can create sustainable solutions moving forward.

Pros and Cons of the New Farm Bill 2020

The New Farm Bill 2020 of India has been a topic of heated debates and discussions among farmers, politicians, and economists. While the government claims that it will benefit farmers by providing them with more options to sell their produce, there are also concerns about certain provisions in the bill. One of the key benefits of the new farm bill is that it removes restrictions on inter-state trade, which would allow farmers to sell their products anywhere in the country. This could potentially lead to better pricing for farmers as they can explore new markets beyond their local area. Another advantage is that it allows contract farming between buyers and sellers without any interference from government officials. This means that private players can invest in agriculture and provide farmers with technology, equipment, infrastructure support etc., thus improving productivity. However, critics argue that allowing private players into agriculture may take away bargaining power from small-scale cultivators who cannot compete against big corporations. Also, removing MSP (Minimum Support Price) – a guaranteed price for crops fixed by the government – could leave vulnerable farmers at risk if market prices fall below production costs. While some aspects of the new farm bill have potential benefits for the Indian agricultural sector such as increased efficiency and competitiveness but there are valid concerns regarding protectionism measures under the MSP safeguard mechanism for small-scale cultivators which needs further investigation before its implementation

The New Farm Bill 2020 has become a topic of intense debate and discussion across India. While some hail it as a major reform that will benefit farmers in the long run, others are concerned about its potential negative impact on small-scale farmers and their livelihoods. The three farm laws introduced by this bill aim to open up agricultural markets, encourage private investment, and provide greater flexibility for farmers to sell their produce outside government-controlled mandis. However, many farmers feel that these laws threaten their traditional way of life and could lead to exploitation by large corporations. It is clear that there are both pros and cons to the New Farm Bill 2020. It remains to be seen how it will ultimately affect Indian agriculture and rural communities in the coming years. Nonetheless, what is certain is that this bill has sparked an important conversation about the future direction of Indian agriculture policy.

1) How will the New Farm Bill 2020 help the farmers? The New Farm Bill 2020 is designed to benefit farmers in several ways. Here are some of the ways in which the bill aims to help farmers: 1.Improved Market Access: The bill allows farmers to sell their produce outside of traditional Agricultural Produce Market Committees (APMCs) or mandis. This opens up new market opportunities for farmers, giving them the freedom to explore different buyers and regions. It can potentially lead to better price realization and increased income for farmers. 2.Contract Farming Opportunities: The bill promotes contract farming, wherein farmers can enter into agreements with agribusiness companies or processors. Contract farming provides farmers with assured buyers for their produce and eliminates the need to search for markets independently. It offers stability and reduces market risks for farmers, ensuring a predictable income. 3.Infrastructure Development: The New Farm Bill 2020 emphasizes the creation of essential infrastructure for agricultural storage, processing, and marketing. This includes the establishment of cold storage facilities, warehouses, and processing units. Improved infrastructure helps reduce post-harvest losses and adds value to farmers’ produce. It also enables farmers to store and sell their produce at the right time, maximizing their profits. 4.Price Assurance: The bill introduces mechanisms to ensure fair and remunerative prices for farmers. It includes provisions for price information systems, market intelligence, and price support mechanisms. This helps farmers make informed decisions about when and where to sell their produce, preventing them from being exploited by middlemen or market fluctuations. 5.Technology Adoption: The New Farm Bill 2020 promotes the use of technology in agriculture. It encourages farmers to adopt modern farming techniques, machinery, and equipment to enhance productivity and efficiency. By embracing technology, farmers can optimize resource utilization, improve crop yields, and reduce production costs. 6.Farmer Welfare and Protection: The bill includes provisions to protect farmers’ interests and ensure their welfare. It establishes mechanisms for dispute resolution and contract enforcement, safeguarding farmers in their dealings with agribusiness companies. The bill also prohibits the sale and lease of farmers’ land, protecting their ownership rights. Overall, the New Farm Bill 2020 aims to empower farmers, improve their income, and create a more competitive and transparent agricultural ecosystem. It provides opportunities for market expansion, contract farming, infrastructure development, and price assurance. While opinions on the bill may vary, its primary goal is to support the growth and prosperity of farmers in the country.

2) What is the impact of Farm Bills 2020 on farmer incomes and aggrotech startups? The Farm Bills 2020 have the potential to impact farmer incomes and aggrotech startups in several ways. Here are some key points to consider:

1.Farmer Incomes:

• Market Access: The bills allow farmers to sell their produce outside traditional mandis, giving them the freedom to explore new markets and buyers. This increased market access can potentially lead to better price realization and higher incomes for farmers.
• Price Assurance: The bills introduce mechanisms for price support and information systems, providing farmers with better price transparency. This helps farmers make informed decisions and reduces the risk of exploitation by middlemen, ensuring fair and remunerative prices for their produce.
• Contract Farming: The bills promote contract farming, enabling farmers to enter into agreements with agribusiness companies. This provides farmers with assured buyers and stable markets, reducing market risks and ensuring a steady income stream.

2.Agritech Startups:

• Technological Integration: The Farm Bills encourage the adoption of technology in agriculture. This presents opportunities for agritech startups to develop and offer innovative solutions to farmers. From precision farming and remote sensing to farm management software and marketplaces, agritech startups can play a crucial role in helping farmers improve productivity and efficiency.
• Market Expansion: With the bills facilitating market access beyond mandis, agritech startups can capitalize on this by creating digital platforms and marketplaces that connect farmers directly with buyers. By providing efficient market linkages, agritech startups can help farmers access a wider customer base, potentially increasing their sales and incomes.
• Data-Driven Insights: The bills’ emphasis on price information systems and market intelligence can create opportunities for agritech startups to leverage data analytics and provide valuable insights to farmers. By analyzing market trends, demand patterns, and pricing information, agritech startups can assist farmers in making informed decisions and optimizing their production and marketing strategies.

While the Farm Bills present potential benefits for both farmer incomes and agritech startups, it’s important to note that their actual impact may vary and depend on various factors such as implementation, adoption rates, and market dynamics. Nonetheless, the bills have the potential to create a more favourable environment for farmers and agritech startups, fostering growth, innovation, and increased incomes in the agricultural sector.

3.What are the worst effects of the new farm bill on Indian farmers? The New Farm Bill has been a topic of contention, and while it has potential benefits, there are concerns about its impact on Indian farmers. Here are some of the potential worst effects:

1.Diminished Market Protections: Critics argue that the new bill could erode the protective measures that farmers previously had under the APMC (Agricultural Produce Market Committee) system. The fear is that the dismantling of this system may leave farmers vulnerable to exploitation by large corporations and lead to reduced bargaining power for fair prices. 2.Potential Exploitation: There are concerns that the bill may enable large corporations to exert undue influence on farmers through contract farming arrangements. Small-scale farmers, in particular, could be at a disadvantage in negotiating terms with powerful agribusiness companies, potentially leading to exploitative practices. 3.Price Volatility: Some fear that with the removal of minimum support prices (MSPs) or guaranteed prices for certain crops, farmers may face increased price volatility. Without a safety net, they could be exposed to market fluctuations and face difficulties in securing stable incomes. 4.Loss of Livelihoods: The fear of losing livelihoods is another concern. As the new bill encourages private investment in agricultural infrastructure and storage facilities, there are apprehensions that small traders and intermediaries, who have traditionally been involved in agricultural transactions, may face displacement, leading to job losses. 5.Dependence on Corporations: The bill’s critics argue that it could lead to increased dependence on large corporations for inputs such as seeds, fertilizers, and technology. This dependence may result in farmers having limited control over their agricultural practices and being subjected to the pricing and supply decisions of these corporations. It’s important to note that these concerns are based on potential negative impacts highlighted by critics, and the actual effects may vary based on implementation and other factors. The government has argued that the bill is aimed at empowering farmers and creating a more competitive agricultural ecosystem. However, it is crucial to address and mitigate these concerns to ensure the well-being and prosperity of Indian farmers.

4) Why are Indian farmers against the new farm bill 2020? Indian farmers have expressed opposition to the New Farm Bill 2020 for several reasons. Here are some key factors contributing to their discontent: 1.Minimum Support Price (MSP): Farmers are concerned that the new bill does not guarantee a Minimum Support Price for their crops. MSP ensures a minimum price for their produce, providing a safety net and stable income. The absence of explicit provisions for MSP in the new bill raises fears of price volatility and the potential for exploitation by private players. 2.APMC Dismantling: The bill allows farmers to sell their produce outside the regulated Agricultural Produce Market Committees (APMCs) or mandis. Farmers worry that the dismantling of APMCs could lead to the weakening of the existing market infrastructure, leaving them vulnerable to the whims of private buyers and potentially impacting their bargaining power. 3.Contract Farming Concerns: The bill promotes contract farming, allowing farmers to enter into agreements with agribusiness companies. However, farmers express apprehension about the terms and conditions of such contracts. There are concerns that small-scale farmers, with limited resources and bargaining power, may be subjected to unfair practices, exploitation, and uncertainty in contract enforcement. 4.Corporatization and Loss of Autonomy: Farmers fear that the new bill could pave the way for increased corporatization of the agricultural sector. They worry about the dominance of large corporations in the supply chain, leading to reduced autonomy and control over their farming practices. This may result in dependency on corporations for inputs, seeds, fertilizers, and technology, potentially impacting their livelihoods and traditional farming practices. 5.Lack of Farmer Representation: Farmers also voice grievances about the perceived lack of meaningful consultation and representation during the formulation of the bill. They argue that their concerns and suggestions were not adequately considered, leading to a sense of exclusion and a feeling that the bill does not truly address their needs and challenges. It’s important to note that these reasons represent the concerns expressed by some farmers, and there are also farmers who support the bill, emphasizing its potential benefits. The opposition to the New Farm Bill 2020 highlights the need for comprehensive dialogue and addressing farmers’ concerns to ensure inclusive and sustainable agricultural reforms.

5) What is the Farm Bill 2020 tabled in the Indian Parliament? The Farm Bill 2020, officially known as the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, is one of the three agricultural bills tabled in the Indian Parliament. It was introduced by the Government of India and passed by both houses of Parliament in September 2020. The key provisions of the bill include: 1.Inter-State Trade: The bill allows farmers to sell their agricultural produce outside of the traditional Agricultural Produce Market Committees (APMCs) or mandis regulated by state governments. It promotes barrier-free inter-state and intra-state trade of agricultural produce. 2.Electronic Trading: The bill facilitates electronic trading platforms and e-commerce for agricultural produce. It aims to create a more transparent and efficient agricultural market system by eliminating physical market barriers and providing online platforms for farmers and buyers to engage in trade. 3.Contract Farming: The bill encourages contract farming agreements between farmers and agribusiness companies. It provides a legal framework for contract farming, outlining the terms and conditions of such agreements, including pricing, quality standards, and dispute resolution mechanisms. 4.Price Assurance: While the bill does not explicitly mention Minimum Support Prices (MSP), the government has stated that MSPs will continue to exist. However, the bill aims to provide farmers with additional marketing channels and choices beyond the MSP mechanism. The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill is part of a broader set of agricultural reforms introduced by the Indian government, which also includes the Farmers’ Empowerment and Protection Agreement on Price Assurance and Farm Services Bill and the Essential Commodities (Amendment) Bill. These bills collectively seek to transform India’s agricultural sector, enhance market access for farmers, and provide them with increased opportunities for trade and engagement with agribusiness companies.

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Introducing the farm bill, studying the current farm bill, contextualizing the farm bill, reading the farm bill: major themes and titles, questions of food, land and agricultural governance, contextualizing the farm bill: questions of food, land and agricultural governance.

Published online by Cambridge University Press:  08 May 2020

The United States Farm Bill is a sprawling, complex piece of omnibus legislation flying largely under the public radar. It influences eaters, growers, land and water, rural, urban and suburban communities alike, across the country and across the world. Its vast purview covers everything from land use to food assistance, forestry to crop insurance and research to civil rights. Though the percentage of Americans making a living farming has never been lower, arguably, the number of people (domestic and international) impacted by the Farm Bill has never been greater as US exports at prices below the cost of production and food aid impacts millions of farmers globally (Murphy and Hansen-Kuhn, Reference Murphy and Hansen-Kuhn 2020 ). However, few know its cryptic language of acronyms and numbered short-hands that fill all 800+ pages (Ichikawa, Reference Ichikawa 2013 ; Johnson and Monke, Reference Johnson and Monke 2013 ; Mercier, Reference Mercier 2016 ).

In December 2018, the Agricultural Improvement Act of 2018 (‘The Farm Bill’) was passed. Was this passage a feat of bipartisan governance—or proof of its wasteful, dysfunctional ways? Or both. Did it produce a lifeline for struggling farmers and hungry families—or a tangled mess of band-aids masking systemic crises? Or both. More research, analysis and dialogue are needed.

It was completed almost on time, less than 3 months after the 2014 Farm Bill expired. Amidst unprecedented partisan rancor, a budget fight that promptly led to a government shutdown, and a farmer income crisis, a largely status quo farm bill went through (Chite Reference Chite 2014 ; Hamilton, Reference Hamilton 2014 ; Orden and Zulauf, Reference Orden and Zulauf 2015 ). Though a feat of bipartisan policy-making, albeit with single-party control of the executive and legislative branches of government, this omnibus achievement garnered scant media interest. Ironically, the proposed cuts to the Supplemental Nutrition Assistance Program (SNAP), the one issue that received substantial media attention, were excised from the bill that reached the final passage, only to be repackaged and pushed through administratively the same day of the bill's signing.

What did the 2018 Agricultural Improvement Act actually accomplish in a time of deep economic struggle and precarity for farmers, ranchers, fishers and farmworkers? According to USDA ERS forecasts in early 2020, median farm income earned by farm households increased in 2019 to -$1,383 from -$1,735 in 2018 but was expected to decline to -$1,840 in 2020. This was before the COVID-19 pandemic and subsequent financial disruptions (USDA ERS, 2020 ). The 2018 Farm Bill did launch the Farmer and Rancher Stress Assistance Program to address the emotional toll of high debt loads and (not) making a living on the land, and expanded crop insurance with enhanced Whole Farm Revenue Protection and localized Risk Management. However, the very causes of farm vulnerability, from the economic to the ecological, were largely unaddressed. The 2014 Farm Bill's $6 billion in cuts to Conservation Title programs were not restored, but nor were they compounded. Even the same twelve title names and order were kept. In many respects, the 2018 Farm Bill made no sudden moves, for better or for worse.

We are deliberately publishing this novel set of papers examining the Farm Bill in Renewable Agriculture & Food System, a journal committed to exploring food and agriculture ecologies, economies and social dynamics, all within a systems-thinking framework. The Farm Bill's structure attests to the fact that nutrition and soil conservation are inextricably related in a much larger system of production, distribution and consumption, and need to be governed and analyzed as such. Moreover, the term ‘renewable’ encompasses the urgency of Farm Bill logistics—it is iterative, being passed every 5 to 7 years. Failing to reach consensus on federal agricultural policy jeopardizes whole programs and projects. At its best, Farm Bill governance aspires to sustainable, resilient agri-food systems.

Despite growing interest in the Farm Bill among food movement activists and practitioners, it remains largely neglected and misunderstood in mainstream journalism and politics. Scholars have investigated various aspects of agricultural policy from across the social and natural sciences, but rarely have they analyzed the US Farm Bill itself as both a political process and policy product. This themed issue explores the ongoing tensions in Farm Bill debates and the outcomes of diverse constituencies advancing seemingly contradictory or disconnected goals. The Farm Bill both weaves a diverse array of social, economic, environmental and health concerns into one piece of uber-legislation, and represents the epitome of log rolling and political legerdemain as coalitions, interests, classes, and constituencies educate, bargain and lobby to advance their agendas. This compendium of multi-disciplinary articles seeks to help transcend false binaries such as urban vs rural, ‘farm subsidies’ (NFFC, 2007 ; Schaffer et al ., Reference Schaffer, Hellwinckel, Ray and Ugarte 2012 ; Graddy-Lovelace and Diamond, Reference Graddy-Lovelace and Diamond 2017 ) vs ‘food stamps’ (Wilde, Reference Wilde 2013 ), yield vs sustainability, and domestic vs international farmers. While its authors may diverge in their analyses, as a whole this forum helps chart a course towards a food, farming and land-use policy that is just, viable, ecological and healthy.

This themed issue emerged out of a 2017 public symposium on the Farm Bill held at American University and co-sponsored by the Berkeley Food Institute. Speakers at this event and several others contributed research articles, commentaries and fora on topics ranging from nutrition to conservation policies, commodity subsidies and trade. We sought to look anew at common debates around its effectiveness as well as fairness, consider its global reach, and attempt to predict changes on the horizon. The authors in this transdisciplinary conversation include longtime experts with deep insider knowledge of the Farm Bill, distinguished scholars, graduate students, advocates and community organizers. We seek to bring these varying perspectives in conversation with each other, and with readers who will respond and debate these ideas from their lecture halls, Congressional offices, meeting rooms and milking parlors.

The Farm Bill first originated in the 1930s as the Agricultural Adjustment Act, but expanded to its modern form in the 1970s, when all the nutrition programs were combined with all of the farm programs into one omnibus package. This pairing of programs primarily addressing rural constituencies with programs focused mostly on urban constituencies produced a powerful coalition to support the Farm Bill, with rural and urban legislators united around a legislative package that had ‘something for everyone.’ For 40 years this bi-partisan political bargain has largely held up, even as the urban-rural split overlays a Democrat/Republican division in political representation in many regions. However, the proposed delinking of the Nutrition Title from the rest of the Farm Bill for the past two Farm Bills has been a major stumbling block to negotiations (Bosso, Reference Bosso 2017 ).

More analysis is needed on the nuances of the Farm Bill itself, from its origins and negotiations to its multifaceted social, ecological, political and economic impacts (Clark et al ., Reference Clark, Sharp and Dugan 2015 ). The legislation—and thus the scholarship on it—must address current trends, from food regionalization (Low et al ., Reference Low, Adalja, Key, Martinez, Melton, Perez, Ralston, Stewart, Suttles, Vogel and Jablonski 2015 ) to the rise of urban producers and farmers markets (Dimitri et al ., Reference Dimitri, Oberhotlzer, Zive and Sondolo 2015 ), and shifting legal context for farmers navigating rapid systems change (Hipp and Francis, Reference Hipp and Francis 2005 ) It needs to respond to the volatile and growing impacts of climate change, water scarcity and other ecological phenomenon on agricultural production (UNCTAD, 2013 ), as well as address the century-long-tension between conservation and production (Reimer and Linda, Reference Reimer and Linda 2014 ) and more recent endeavors such as grain perennialization (Jackson and Berry, Reference Jackson and Berry 2010 ). Due to its foundation in 1930s and 1940s ‘permanent law’ and the global economic crisis that was the Great Depression it needs historical and geopolitical contextualization. The articles in this issue provide an important layer of contextualization to agricultural governance in the U.S., more is needed, but this provides a foundation.

As a long and complicated tome comprised self-references, it demands public scholarship to allow informed public debate and civic engagement. Moreover, it must acknowledge the dynamics of racism, sexism and other axes of discrimination in US agricultural policy, and community-led initiatives working to overcome them (White Reference White 2011 ; Doan-Crider et al ., Reference Doan-Crider, Hipp, Fight, Small and Small 2013 ; Graddy-Lovelace, Reference Graddy-Lovelace 2016 ; Fagundes et al ., Reference Fagundes, Mleczcko, Picciano, Tillman, Graddy-Lovelace, Schwier, Hal and Watson 2020 ). This themed issue examines major Farm Bill issues with an eye to their oversights and path dependencies (Dimitri and Effland, Reference Dimitri and Effland 2020 ): nutrition programs (Gosliner and Shah, Reference Gosliner and Shah 2020 ; Pino, Reference Pino 2019 ), farm safety nets (Zulauf, Reference Zulauf 2019 ), conservation programs serve as band-aids to larger, structural crises of food insecurity (Anderson, Reference Anderson 2020 ; Bellows, Reference Bellows 2020 ; Riches, Reference Riches 2020 ), farmer inviability (Ray and Schaffer, Reference Ray, Schaffer, Thomas Lyson, Stevenson and Guptill 2008 , Schaffer and Ray, Reference Schaffer and Ray 2020 ), rural community struggles (Labao and Moyer, Reference Lobao and Moyer 2001 ) and ecological exhaustion (Fagundes et al ., Reference Fagundes, Mleczcko, Picciano, Tillman, Graddy-Lovelace, Schwier, Hal and Watson 2020 ). Rhetoric of ‘national interest’ is used for myriad policy goals across multiple Farm Bills (Lehrer, Reference Lehrer 2020 ). While U.S. agricultural policy has long served as a driver of geopolitical power dynamics (Winders, Reference Winders 2020 ), trade becomes even more of a flashpoint for international tensions (Hansen-Kuhn, Reference Hansen-Kuhn 2011 , Wise, Reference Wise 2009 ).International agricultural aid to lift up the economies of developing nations could serve as an escape valve from seemingly intractable conflicts over trade barriers (Mercier, Reference Mercier 2020 ).

Commodity policy and crop insurance

The past four decades of federal farm policy has seen a general shift away from supporting farm commodity prices with commodity reserves, marketing quotas and acreage restrictions to a more laissez-faire approach, with subsidy payments functioning as the primary farm safety net (Bowers et al. , Reference Bowers, Rasmussen and Baker 1984 ). Winders, ( Reference Winders 2009 ) chronicles the domestic power dynamics at work in US farm policies enabling commodity crop (over)production. And, in the last two decades commodity program payments have given way to crop insurance subsidies as the primary safety net mechanism (Zulauf et al. , Reference Zulauf, Schnitkey, Coppess and Paulson 2016 ). The move to crop insurance reflects increasing political hostility to ‘subsidies’ as a form of welfare or undeserved assistance; instead, government subsidies for crop insurance premiums are framed as a market oriented risk management policy that buffers the effects of market volatility while ensuring that farmers respond to price signals and not to government program payments in their planting decisions (Gardner, Reference Gardner 2006 ). Subsidies for crop insurance also serve to bypass discussion of payment limits for commodity programs. In ‘U.S. Commodity Policy: Evolution, Experiments, Constants, and Implications,’ Zulauf ( Reference Zulauf 2019 ) gives a historical survey of the Commodity Title, tracing its evolution as a series of policy experimentations with countercyclical and direct payments; he culminates his overview with reflections on how the Commodity Title's original risk management goals have moved over to crop insurance and crop insurance supplements. The Farm Bill's central mandate as a safety net has persisted, amidst vast changes in how this safety net has been envisioned and implemented. Zulauf suggests viewing these evolutions commodity-by-commodity, with specific focus on how each commodity crop has made its way through the various swings from production controls to base-acre-based payments. On the other hand, in their article ‘Agricultural Supply Management and Farm Policy,’ Schaffer and Ray ( Reference Schaffer and Ray 2020 ) explore the root causes of why safety nets are so needed and yet so fraught. They trace this policy conundrum back to agriculture's chronic price and income problems: the tendency to overproduce commodity crops and lack of effective market responsiveness in the very structure of farm economics. Their research leads squarely back to the question of supply management, so foundational to the history of the Farm Bill, and yet so forgotten in its demise over the past generation. Schaffer and Ray conclude their extensive analysis with an important proposal for a 21st century version of supply management programs based in market driven inventory systems to balance and coordinate supply with demand.

Conservation title

For nearly a century, the Conservation Title has directly and dutifully followed the Commodity Title. In the throes of the Dust Bowl and Depression, farmers trekked to Washington to demand government assistance. Farmers were acutely aware of the twin ecological—and economic—crises of commodity crop overproduction. The 1938 Agricultural Adjustment Act foregrounded soil conservation alongside supply management. For decades, farmers were given soil conservation assistance and by the 1980s programs such as the Conservation Reserve Program (CRP) put highly erodible land out of production. By the 2002 Farm Bill, Working Lands programs gained ground to help farmers implement biodiversity and conservation practices on land in production, though agro-fuel incentives brought a range of domestic and international issues (Lehrer, Reference Lehrer 2010 ) In addition to the popular Environmental Quality Incentives Program (EQIP), farmers, ranchers and forested landowners could sign up for the Conservation Stewardship Program (CSP) to design and implement more integrative and long-term ecological practices on their lands. Though voluntary and under-funded, Conservation Title programs continue to anchor the Farm Bill. In their article, ‘Ecological Costs of Discrimination: Racism, Red Cedar, and Resilience in Farm Bill Conservation Policy in Oklahoma,’ Fagundes et al ., document however how such conservation programs and policies have suffered from structural racism and biases and historically underserved farmers and ranchers of color (Fagundes et al ., Reference Fagundes, Mleczcko, Picciano, Tillman, Graddy-Lovelace, Schwier, Hal and Watson 2020 ). This article emerged from a community-partnered action research project (and thus is co-authored) with American University students and faculty and long-time leaders and practitioners within the community-based organizations the Rural Coalition and the Oklahoma Black Historical Research Institute, that works with farmers and ranchers of color in Oklahoma to support African-American and indigenous agriculture and communities. This research maps and contextualizes the ways invasive species have pervaded the landscape and jeopardized waterways and arable and grazing land throughout the state, while Natural Resources & Conservation Service resources to mitigate the problem have disproportionately been accessed by white landowners. The paper argues that systemic racism persists in the USDA Conservation Title programs and how it hurts farmers and ranchers of color so acutely, but ultimately also: people, land, waterways, firescapes and climates more broadly. The paper concludes with instances of how grassroots community-based organizations are instrumental to farmers and ranchers of color in accessing and making use of Conservation Title programs—and thus their important potential for countering discrimination and injustices in agriculture and for supporting equitable climate-resilient land use in general.

Trade is seen as an outlet for commodity surpluses that can reduce government expenditures on farm programs while helping to increase commodity prices and thus support farm income. Murphy and Hansen-Kuhn ( Reference Murphy and Hansen-Kuhn 2020 ) examine the history and politics of dumping of agricultural commodities. For the last 20 years the U.S. has consistently sold agricultural products on international markets below the cost of production. This process has been facilitated in part by domestic subsidy programs that allow farmers to continue farming even when the market price is lower than production costs, However. It is critical to account for the influence of agribusiness oligopolies on commodity prices, and the degree to which they engage in futures trading to manipulate price shifts for maximum advantage, undercutting the stated purpose of futures trading as a hedge against price volatility.

Stephanie Mercier with ‘Adding a New Perspective to U.S. Agricultural Policy’ (Mercier, Reference Mercier 2020 ) provides an alternative perspective to debates over the merits of free trade. Mercier suggests that too much attention is paid to opening up mature developed country markets to U.S. agricultural exports, at the expense of rapidly growing developing country export markets. U.S. policy makers should focus on increasing demand in developing countries by helping the agricultural sectors of these countries grow, as they constitute the largest sectors of their economies. The lesson here would seem to be a rising tide lifts all boats, from Ghanian smallholders to Kansas wheat farmers.

Bill Winders, in ‘The Global Context of the US Farm Bill in 2018: World Markets, Instability, and Policy Preferences in Agriculture’ (Winders, Reference Winders 2020 ) examines the impact of global demand, international competition and price instability on the policy preferences of different blocks in American agriculture. Winders predict that feed grain farmers will oppose production controls and trade restrictions, while wheat farmers, facing more competition and weaker demand than feed grain farmers will be more open to grain reserves as a way to moderate price volatility. Overall, Winders links changes in policy preferences among farm groups to the global market, and bases his analysis of future policy preferences accordingly. He provides a sober examination of why certain farm groups are likely to have certain policy preferences.

Nadine Lehrer, in ‘US Farm Bills and the National Interest: An Historical Research Paper’ (Lehrer, Reference Lehrer 2020 ) looks at how the changing role of national interest discourse is mobilized to justify diverse policy goals in Farm Bill statutory language. Overall, the general trend is that of a shift from purely domestic concerns to more international ones. And invocations of national security correspond to periods when the national mood was one of vulnerability to external threats, whether that be the Cold War in the 1980s or terrorism in the wake of the 9/11 attacks.

With the government now focused on renegotiating unfair trade deals, the positioning of the U.S. as vulnerable to outside economic threats has been employed to justify protectionist policies. Yet farm interest groups have a strong pro-export orientation for the most part. The NAFTA renegotiations led to some concessions by Canada giving American dairy farmers more access to the Canadian market, but the end result was a loosening of trade restrictions, which was intended to benefit American producers. It's just that in this case a discourse of vulnerability rather than that of a rising tide lifts all boats was employed to basically force open the Canadian dairy market a bit.

The Nutrition Title is the spending behemoth of the Farm Bill, and remains one of the most contentious, with critics demanding restrictions to avoid spending money on the ‘undeserving’ and supporters arguing for increased benefit levels and the elimination of bureaucratic obstacles to signing up for benefits. Molly Anderson, in ‘Make federal food assistance rights-based’ (Anderson Reference Anderson 2013 , Reference Anderson 2020 ) proposes a paradigm shift to shake up the debate over whether or not recipients of programs like SNAP are ‘deserving.’ The US is the only industrialized country in the world that does not formally accept food as a human right, which Anderson traces to the Cold War-driven impulse of the US to support political and civil rights of individuals but not economic, social and cultural rights (including the right to food). Her grounding in our legal and moral obligations, and responses by Bellows and Riches (Bellows, Reference Bellows 2020 ; Riches, Reference Riches 2020 ) lay important groundwork for the perspectives from the field offered by Pino, Gosliner and Shah.

Lisa Pino, in ‘Immigration Policy and Perception Impacts on SNAP Access and Eligibility: A View from the Field,’(Pino, Reference Pino 2019 ) gives an insider's perspective on Farm Bill implementation with a special focus on limited-English speakers and non-citizen SNAP recipients. These ‘liminal citizens’ (Torres and Wicks-Asbun, Reference Torres and Wicks-Asbun 2014 ) face de facto and de jure obstacles to receiving needed food aid, resulting in a staggering rate of Latino food insecurity rate of 26.9% in 2009 (almost double the national average of 14.7%), and making cultural competence in nutrition outreach and assistance that much more pertinent.

In ‘Participant Voices: Examining Issue, Program, and Policy Priorities of SNAP-Ed Eligible Adults in California,’ (Gosliner and Shah, Reference Gosliner and Shah 2020 ) the authors looked closely at a sample of recipients of this nutrition education program, estimated to spend $428 million nationally in FY 2019. Among families sampled across five California counties, the authors found that low-income parents generally understood what to feed their children, but faced structural barriers (primarily financial) to acquiring sufficient healthy food. Gosliner and Shah argue that a ‘deeper understanding of the interplay between structural constraints, social support, and agency is needed to identify optimal solutions.’

A few common themes emerge from these three very different contributions related to the Nutrition title. One is the racialized nature of food assistance in the U.S. In her case for a rights-based approach to food assistance, Anderson compares the stigmatization of SNAP recipients (often portrayed, inaccurately, as primarily non-white) with the lack of stigma associated with the federal tax deduction for mortgage interest. Noting that the latter accrues disproportionately to whites and increases with rising incomes, the total expense of both programs was approximately the same in 2016 ($70 billion each).

Another key theme is how nutrition assistance recipients need to be able to inform, and influence how the programs are run. When Gosliner and Shah based their study on ‘participant voices,’ they discovered nuances of nutrition education and policy implementation that would have been difficult to predict in the sterile laboratories of policy development. Policymakers would do well to be informed by these voices and their valuable direct experience with Farm Bill nutrition programs.

From miscellaneous to mandatory

They have been called ‘tiny but mighty’(National Sustainable Agriculture Coalition, 2018 )—the basket of smaller Farm Bill programs that were established to address inequities among American farmers, farming styles, land tenure arrangements and even data itself. Falling under the $50 million ‘baseline’ funding level since their inception, many of these programs were awarded baseline funding for the first time in the 2018 Farm Bill. What does that mean for their political power? With growing market share and now official endorsement in the form of permanent Farm Bill programs, should farmers who benefit from these programs (many of whom fall under the rubric of ‘alternative farming’) now call for concomitant lower funding for so-called ‘conventional farming’? Food hubs have emerged and expanded across the country (Diamond and Barham, Reference Diamond and Barham 2011 ), as have ‘local,’ organic and direct-to-consumer marketing, but most Farm Bill funding continues to support industrialized monocropping, not diverse agri-food systems and marketing channels. In their article, ‘From farming to food systems: The evolution of U.S. agricultural production, and policy into the 21st Century,’ Dimitri and Effland ( Reference Dimitri and Effland 2020 ) provide a valuable overview of major transitions in U.S. agriculture, and the economic, ecological and social implications for the vast changes over the past few generations. They explore the tension between the continued focus of Farm Bill programs on conventional field crop farming, and the growing support for organic research and extension, and local food marketing. Their paper ends with recommendations for how Farm Bill policies and paradigms could be updated and expanded to better respond to and facilitate efforts to regionalize and localize food systems for more resilient and sustainable agri-food systems.

The 2018 Farm Bill includes important changes that increased support for local agriculture, beginning farmers and racial justice; namely the creation of the Local Agriculture and Market Promotion and Farmer Outreach and Training Opportunities (FOTO) programs. The former combines the Value-Added Producer Grant Program and the Farmers Market and Local Food Promotion Programs into one larger program that receives baseline funding of $50 million a year. Likewise, FOTO combines the 2501 Program for Socially Disadvantaged Farmers and Ranchers with the Beginning Farmers and Ranchers Program, also creating baseline funding of $50 million a year. In both cases the baseline funding designation means that future farm bills will include these programs by default, unless steps are taken to remove them.

Furthermore, the 2018 Farm Bill included 63 new provisions to support and advance indigenous agriculture and tribal producers, food providers and communities. The newly formed Native Farm Bill Coalition built upon previous alliances and networks: the Coalition describes itself as ‘a joint project of the Shakopee Mdewakanton Sioux Community's Seeds of Native Health campaign, the Intertribal Agriculture Council, the National Congress of American Indians, and the Indigenous Food and Agriculture Initiative to improve Native dietary health and food access.’ As of late 2019, it listed 77 tribes and multiple inter-tribal groups and Native organizations as members.

Despite the length and breadth of the Farm Bill, however, so much is left out altogether. From immigration and labor, to antitrust enforcement, from fisheries to antibiotics and public health. Food provisioning for low-income communities is split between the Farm Bill and Child Nutrition Reauthorization, leading to confusion. Food safety and environmental health related to agriculture are further areas of bisected jurisdiction, threatening the federal government's ability to achieve regulatory coherence. More education is needed for citizens to better understand the possibilities and limitations of the Farm Bill's jurisdiction.

At the heart of the Farm Bill inquiry is the question of effective, equitable governance. Does the Farm Bill's omnibus structure epitomize the strength or weakness of this legislation? And is it wise policy to incorporate land use and nutrition in the same bill, or mere political expediency? To what extent does the Farm Bill include the right policy areas at all, or is it a path-dependent amalgam of political convenience? Moving forward, Farm Bill scholarship needs to address the question of scale of governance more directly: What is the relationship between federal policy and state, regional, municipal and county policy-making and policy-implementing? What forums exist for such conversation, analysis, delegation and collaboration? What about the vast international impacts of the U.S. Farm Bill—in and beyond the Trade Title? How does this intricately national and historically nationalist/nation-building legislation relate to World Trade Organization paradigms and paradoxes? What would a forum look like whereby farmers and frontline farmer organizations from around the world can share their experiences on the impacts of Commodity and Research and Trade and food aid programs and priorities?

While beyond the scope of this themed issue, it is critical to acknowledge how policy questions that have been central points of debate in Farm Bills are now being decided by executive action, outside the legislative process that heretofore has governed the Farm Bill. The USDA just launched another round of payments to farmers to offset trade losses: $16B on top of the $12B in 2018, along with massive payments in the COVID-19 federal aid package. Meanwhile, the USDA released a proposed rule cutting SNAP eligibility for 3.1 million people in order to save $25B over a decade. Yet, SNAP rules and direct payments to farmers have historically been part of the Farm Bill negotiations and authorizations. This overriding of legislative deliberation and oversight begs urgent questions about the nature and dynamics of agricultural governance at large. In short: more research is needed on the content and process of the Farm Bill—and beyond.

How do we expand and deepen public, civic scholarship and dialogue on the Farm Bill while also contextualizing it within the broader complexities and urgencies of agricultural governance at large? If what we used to think of as the scope of the Farm Bill is now subordinated to executive action, then people concerned about food and farm policy need to be even more vigilant about the myriad pathways governance manifests, and create more opportunities for diverse constituencies—from farmers, to SNAP recipients to scholars and activists and policy makers—to learn from each other. Agricultural and food governance at a basic level cuts to the core functions of states—providing for the subsistence needs of their citizens, regulating land use and protecting economic producers against catastrophe and economic turbulence. In unpacking the Farm Bill as a policy process and policy object we are addressing existential questions of governance writ large.

More research is needed on this complex piece of omnibus legislation. Practitioners (farmers, ranchers, farmworkers, fishers and seed-savers) talking with soil scientists, agricultural economists debating with historians, anti-hunger advocates working with anti-racist scholars, cooperative extension agents and policy-makers (from Congressional Agricultural Committees to local food policy councils). We hope this compilation of articles and essays helps advance the broader conversation—across and beyond academic disciplines—on the importance of Farm Bill assessment, analysis, debate and dialogue to help inform, reform and transform food, land and agricultural policy for a more equitable, viable and resilient agri-food system at large.

Acknowledgement

We wish to acknowledge all the myriad contributors to this special issue, with a particular thanks to those practitioners from the field who took time from their work to translate their findings into articles. We wish to also thank all the speakers and attendees at ‘Farm Bill 2018: Policy, Politics, and Potential,’ a public symposium held on March 28, 2017 at American University in collaboration with the Berkeley Food Institute. This special issue grew out of that symposium, which sought to inform, reform and transform the Farm Bill through community-partnered research.

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Farm Bill 2020: Will it Really Benefit the Farmers ?

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Essay On Farm Bill 2020 | Farm Bill 2020 Essay | Agriculture Bill Essay

Hello Friends, In this post “ Essay On Farm Bill 2020 | Farm Bill 2020 Essay “, we will read about all the three farm bills 2020 as an Essay In Detail.

Note: This “ Essay On Farm Bill 2020 “, is a result of deep research based on the summary of Farm Bill 2020. Farm Bill 2020 Essay is an expected topic for the exam . so, read it carefully.

Let’s Start…

Essay On Farm Bill 2020

Shri Narendra Singh Tomar (Union Minister of Agriculture & Farmers’ Welfare)  s aid that, Through this bill, farmers have the freedom for direct marketing of their products.

And this will enable the farmers to get better prices and along with this, the MSP system will continue, consumers will also benefit.

The Farm Bill 2020 consists of three-bills passed by the government of India . these are:

The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020

There is a provision in this bill to create an ecosystem where farmers and traders will have the freedom to sell crops outside the market.

According to this, farmers can sell their crops at the desired location and can sell and buy crops in other states without any hindrance .

This means that even outside the APMC , the purchase and sale of crops will be done. With this, there will be no tax on the sale of the crop.

APMC is the mandi market where farmers can sell their agricultural produce at the minimum support price . These Mandis are run by the state governments and in every state, there is also APMC Act related to these Mandis.

According to Farm Bill 2020 , food items such as wheat, rice, oilseeds, oil, vegetables, fruits, spices, sugarcane, poultry, piggery, goat farming, fisheries, dairy products, raw cotton, jute, and animal feed, etc , are defined as Agricultural produce or products.

Under this bill, the SDM level officer or the Arbitration Committee appointed by him has been authorized to decide the terms of payment and settle the dispute.

• Essay On Bank Fraud In India | Bank Frauds Essay In 500+ Words
• Essay On Farmers Protest In India | Farmers Protest Essay In English

The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020

In this bill, it is proposed to make arrangements for contract farming across the country.

The bill empowers farmers to engage with farm services, the sale of agricultural products, agribusiness firms, wholesalers, retailers, and exporters .

Under this bill, there can be a contract to purchase crops based on the price and quality standards that have already set. Similarly , from selling seeds, fertilizers, and pesticides to farmers, there can also be a contract to provide all kinds of services related to agriculture .

Through contract farming , farmers will be able to sell the crop to companies at a fixed price. Contract farming is done on the basis of a contract.

If the farmer contracts with a company or a person, during this time the contractor buys the crop grown by the farmer.

The special thing is that the prices of the crops grown by the farmer are also fixed in the contract in advance.

Essential Commodities (Amendment) Act, 2020

The Essential Commodities Act 1955 has been amended through this bill. through this bill, agricultural products like cereals, pulses, oilseeds, edible oil, onions, and potatoes have been removed from the list of essential commodities.

It means the stock limit has been removed from these products. Now stock limits will be imposed on them only in situations such as national disaster, drought, etc .

In addition, such stock limits will not be applicable for value chain participants, as well as government control over production, storage , and distribution .

The Government enacted the Essential Commodities Act 1955 to ensure the supply of essential commodities and to protect them from hoarding, black marketing .

The Act of 1955 does not give any specific definition of essential items, but according to Section 2A of the Act , essential item means the items included in the schedule of this Act .

The central government can add and remove the essential items from this schedule . By declaring a commodity as an essential commodity, the government can control the production, supply, and distribution of the commodity and also enforce the stock limit .

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Farm Bill 2020 Essay

India has been dependent on agriculture since ancient times. India is an agricultural country, about 65% of its population is engaged in agriculture. Agriculture accounts for about 17% of India’s economy. Our former Prime Minister Lal Bahadur Shastri understood the importance of farmers. During the war with Pakistan in 1965, he gave the slogan “Jai Jawan Jai Kisan” for the service of the country by the farmers and jawans. Farmers are called the Annadata of our country, but they themselves lead a very difficult and pathetic life. “Kisan Bill Bill 2020” is an initiative taken by our government to improve the agriculture sectors and their daily life.

Table of Contents

Long Essay on Farm Bill 2020 in English

What are the things in the Bill 2020 brought by the Government of India for the benefit of farmers, which the farmers themselves are opposing. In this essay given below, we will discuss about it in detail.

Long Essay – 1300 words

introduction

Farmer is the backbone of our country and country’s economy. Despite this, the condition of the farmers is very bad and pathetic. Even in this digital age, many farmers are illiterate today. Some farmers are unable to educate their children because of their poverty. In order to strengthen the family situation of the farmers and to modernize agriculture, the government has decided to bring “Kisan Bill Bill 2020” for the farmers, but the opposition of this bill by the farmers itself is a matter of concern.

What is Kisan Bill 2020 ?

In view of the condition of the Indian farmer, our government has decided to enact a law under this, by adopting new ways in the life of the farmers and in farming, how to bring them in a better condition. In this Kisan Bill, 3 bills have been added by the government. In which the Agricultural Produce Trade and Commerce (Promotion and Facilitation) Bill 2020, Farmers Contract Act 2020 on Price Assurance and Agricultural Services (Empowerment and Protection), and the Essential Commodities Amendment Act 2020 have been included.

The three Acts were brought together under one ordinance during the monsoon session. They were passed in the Lok Sabha on 17 September 2020 and then in the Rajya Sabha on 20 September 2020. After this, this bill was approved by the President on 27 September 2020 and this bill was passed as a bill.

The main objective of passing the Kisan Bill 2020

Agriculture has always played an important role in making India’s economy strong. Our country has always been an agricultural country and our farmers live in villages. Farmers take care of themselves and their families by cultivating in the fields.

After independence, there was a system of zamindari in India. There used to be a deal between the farmer and the zamindars that the farmer would do the farm and the wages on those fields, and the cost of the crop and selling it in the markets would be the job of the zamindar. Due to all this, the farmers used to make only a nominal profit, and sometimes due to personal needs, the farmer took loans from the landlords and if he was not in a position to repay the loan, he had to lose his land.

Later the government abolished the system of zamindari and introduced a new system for the farmers and the crops produced from them could be sold directly to the government in the interest of the farmers. Due to which the farmers got a fair price for their hard work.

According to the government policies, farmers could sell their produce themselves in the APMC (Agriculture Produce Store or Mandi) set by the government. But in this the retailers and middlemen come and start making their money. Such middlemen used to buy their goods from the farmers at cheap prices and sell them to the traders at higher prices and used to make their own money.

In this way, even in the government mandis, the farmers could not get the right remuneration or price for their produce. In other words, this rule was not properly implemented and followed. The government has introduced a new agriculture bill to end this type of fraud so that more and more benefits can be directly given to our farmers.

Some important points of Kisan Bill

The following things are contained in the three bills passed by the Central Government. Something like this –

• Farmer’s Production and Commerce Bill
• Under this, farmers can sell the produce to their desired place in the country for business.
• This also means that farmers can buy or sell their produce outside the APMC (Agriculture Produce Market).
• Along with this, there will be no tax of any kind on crops.
• Farmers can also sell their crops online. In this way, they can earn their wages by charging prices according to their crops.

2. Farmers (Empowerment and Protection) Bill on Price Assurance and Agricultural Services

• Under this, a system of contract farming is also proposed across the country.
• Under contract farming, if the crop is damaged, its loss will not be compensated by the farmer but the parties or companies making the agreement.
• Farmers can sell the produce to these companies at their own price, which will increase their income and eliminate middlemen.

3. Essential Commodities Amendment Bill

• Under this act, the stock limit on things like edible oil, oilseeds, pulses, onions, potatoes has been removed.
• Stock limit can be applied only in situations like national calamity, drought.
• Government control over production, storage and their distribution will end.

benefits of kisan bill

Kisan Bill 2020 has been passed for the upliftment of agriculture sector in India. According to this bill, along with benefiting the farmers, important reforms have to be brought in the agriculture sector. Some of the benefits of this bill are as follows-

• Under this law, farmers will be free to sell their crops anywhere in the country.
• Flexibility will be encouraged between the traders or the company and the farmers.
• In addition to mandis, additional construction of warehouses, cold houses, farm gates, processing units in the farmer’s business area.
• Organization of exporters, organized sectors with farmers so that it eliminates middlemen.
• To promote digital marketing across the country and bring transparency in this work.
• Exemption from any kind of tax (including customs duty) on crops for trade.
• Contract farming will start. In which the price of the produce will be fixed between the investors and the farmers so that more profit can be reached to the farmers.
• By providing new technology, crop yield can be increased.
• Farmers will get freedom from the loss in agriculture.
• Storage limit on some selected crops will be removed so that farmers will get more profit.

Why protest against Kisan Bill ?

For some reasons, the Kisan Bill brought by the government is being opposed. such as –

• The support price (MSP) fixed by the government will be abolished.
• If the farmer sells his produce outside the mandis, then the agricultural produce markets will be abolished.
• What about portals like e-NAM or e-Trending.
• Corporate sectors will get a boost in the agriculture sector on the basis of money.

Is Kisan Bill 2020 in the interest of farmers or not ?

Honorable Narendra Modi, the then Prime Minister of our country, has said about this bill that this Kisan Bill will work like a watershed for the lives of farmers. will protect their interests, and will bring an increase in the support price of their produce. According to the bill, it will help the farmers to get their due remuneration and bring useful reforms in the agriculture sector. If we look at the bill, it is in the interest of farmers and agriculture sector. On the other hand, despite this bill being in the interest of the farmers, it is being opposed by the farmers all over the country especially in the states like Punjab, Haryana, Madhya Pradesh etc. This leads to some negativity being seen about the bill.

Even in today’s latest digital times, the condition of farmers is not seeing any good. Despite several decisions taken in the interest of farmers and agriculture sector, the upliftment of farmers is not visible. The government has introduced a law for their interests and to establish new dimensions in the agricultural sectors. Against which many states and farmers are continuously protesting. This issue has become quite serious due to such opposition.

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Essay on Farm Bill 2020

The farmers are the real strength of our nation as more than 60% of people are involved in agriculture. Agriculture accounts for 17% of the total GDP in India. This conveys the importance of farmers and their duties towards our nation. It is very sad to state that farmers are said to be the food providers but themselves lead a hard and miserable life. Farmer Bill 2020 is an initiative made by the government to improve the condition of agricultural sectors and farmers but it has become a great concern due to the farmers protesting against the bill.

Short and Long Essay on Farm Bill in English

Essay on Farm Bill 2020 for students of class 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and class 12 in English in 100, 150, 200, 250, 300, 500 words. Also find short Farm Bill 2020 essay 10 lines.

Farm Bill 2020 Essay 10 Lines (100 – 150 Words)

1) The Farm Bills or Indian agriculture Act 2020 were proposed in September 2020.

2) This bill was proposed on behalf of the existing conditions of farmers.

3) This bill aimed to benefit farmers and promote trade.

4) It allowed farmers to sell their goods anywhere in the country.

5) Farmers didn’t find necessary information regarding MSP in this bill.

6) They also feared chances of exploitation due to private parties’ investment.

7) Farmers were not consulted or discussed the farm bills by the government.

8) Farmers were not satisfied with the bills and protested against them.

9) The farm laws were stayed by the Supreme Court on 12 January 2021.

10) The farm bills were canceled on 19 November 2021 due to mass opposition.

Short Essay 250 Words

Introduction

India is a country that is known as an agricultural economy. More than 50% of people of India reside in villages and depend upon agriculture for their needs. Every program and policy is launched by the government to being reform in the agricultural sector.

The inception of Farm Bill 2020

There have been many schemes and policies initiated in the past after independence by different governments for the welfare of the agricultural sector and farmers. This is sad to say that despite introducing several schemes and policies for agriculture and farming the condition of farmers in India is still poor. Recently the government of India has launched a Farm Bill in September 2020 for the welfare of the agricultural sector. It is introduced with a vision for uplifting the condition of the agricultural sector and farmers till 2022.

Will the Farm Bill 2020 bring reform for the farmers?

The Farm Bill 2020 has been passed by the government of India to benefit the agricultural sector and the farmers. The farmers had started protesting after the passing of the Farm Bill 2020. It is because they are not satisfied with this scheme. They are demanding for strengthening of APMC’s. They want the government sector to invest in the agricultural sector instead of the private sector.

They fear that the private sector will have a monopoly in the agricultural sector. This will worsen the condition of the farmers having small landholdings. They have to live at the mercy of the corporate sector and the private sectors will only think about their own benefits. Therefore according to the farmers, the farm bill is not going to bring any reform for the farmers.

The bill should have been passed after discussing with the farmers and then there would be no confusion in the mind of farmers about Farm Bill 2020.

The long essay provided below will give a clear idea about the Farmer Bill. It will be useful for students in competitive exams, essay writing, assignments, etc.

Why Farmers Protested against Farm Bill – Long Essay (1000 Words)

‘Jai jawan Jai Kisan’ was the beautiful slogan given by Lal Bahadur Shastri. It was given by him in the honor of farmers and soldiers for their contribution to the nation. The farmers are the backbone of India. They do a lot of hard work and feed everyone in the nation. The schemes and programs launched by the government are of great importance to the farmers. Various programs and schemes need to be launched to give a better life to farmers and height to the agricultural sector.

What is Farmer Bill 2020?

The launching of the Farmer Bill is the medium to transform the agricultural sector. A set of three acts constitute to form the Farmer Bill 2020 and were passed in the monsoon session of the parliament in 2020. The bills were first passed by the Lok Sabha on 17 September 2020 and further by Rajya Sabha on 20 September 2020. The President finally gave his assent to the Farmer Bill on 27 September 2020. The three bills that form the Farmer Bill can be stated as:

• The Farmer’s Produce Trade and Commerce (Promotion and Facilitation) Act, 2020.
• The Farmers (Empowerment and Protection) Agreement on Price assurance and Farm Services Act, 2020.
• Essential Commodities (Amendment) Act, 2020.

What is the Purpose of Introducing Farm Bill 2020?

Agriculture plays an important role in strengthening the economy of India. Most of the people in our country live in villages and earn their living by practicing farming. The system of Zamindaari was prevalent after India got independent from British rule. The farmers used to sell the agricultural produce to the zamindars or landlords. They use to pay very less to the farmers.

Many times it happened that the farmers took money as loans from the landlords and in return, they have to pay hefty interests. The Zamindaari system was greatly a form of exploiting the farmers. The farmers were subject to injustice. Further, after the landlord system was abolished by the government, the Government introduced a new farming procedure.

The APMC (Agriculture Produce Market Committee) or Mandis set by the Government for selling the agricultural produce. It was set to benefit the farmers but the scenario was something else. The middlemen, retailers started making money in this provision. They used to buy the products at low rates from the farmers and sold them to the traders at high prices.

Farmer received very less money after selling the products and there it can be said that the provision was not implemented well and was not benefitting to farmers. The Government has introduced the new farm bill to put these improper activities to an end thereby benefitting the farmers.

Pros and Cons of Farm Bill 2020

The Farm Bill 2020 includes three acts that are meant to provide certain benefits to the farmers and uplift the agricultural sector in India. The provisions in the bill aim to bring the agricultural sector to great benefit along with raising the income of the Indian Farmers.

• This law enables the farmers for trading agricultural products anywhere in India.
• The flexibility of markets for the farmers will be increased.
• The farmers can buy or sell their agricultural products via online mode also.
• There will be no tax imposed on the farmers by the state government for inter-state trading.
• The bill provides a right to the farmers for contract farming. The farmers can enter into contract farming after the price for the produce is fixed by the investors.
• The farmers will be benefitted from new farming technologies for a good yield of crops.
• The private party investment will lead to development of good infrastructure like cold storage, warehouses etc for proper storage and reduced loss of agricultural produce.
• The private parties’ investment will benefit the farmers from having small landholding.
• The bill states removing cereals, pulses, potatoes, onions, and edible oil from essential commodities and ending the stock holding.
• The bills have become the subject to protest by the farmers of India and are said as anti-farmer by the farmers.
• The farmers are unhappy with the farm bill 2020 as they fear the ending of MSP (Minimum Support Price).
• It will lead to the dominance of the corporators in the agricultural sectors by the power of money.
• Farm bill had been passed by the government by voice voting and without consulting the farmers and opposition.

Is Farm Bill 2020 Good or Bad?

The introduction of the Farmer Bill 2020 is referred to as a watershed moment in Indian History by our honorable Prime Minister Narendra Modi. The bills present a layout that is for the benefit of the agricultural sector. Despite relating it for the welfare of farmers, it has received a negative response in form of a nationwide protest by the farmers in India especially Punjab, Haryana, Madhya Pradesh, etc.

Reasons for Protesting against Farm Bill

The first and main reason for the protest against the bill is the sudden introduction of the Farm Bill 2020. It was necessary to discuss the bill with the farmers, opposition and state government before passing the bills. It would then not create misconceptions about the bill. Secondly, the farmers’ fear of the Minimum Support Price for the Products would end. The price of the goods would be negligible in the market if there is no MSP and therefore the farmers will have to sell their products at loss.  The MSP was of great benefit to the farmers.

Farmers fear that the entry of private parties’ investment would lead to the supremacy of the corporators in the agricultural sector and would exploit the small farmers. Therefore it can be said that Farm Bill is not justifying as must be discussed before being passed and becoming a law in the nation.

The condition of the farmers in India is not very good. They have been subject to injustice for many years even after the introduction of schemes and plans in the agricultural sector. The present government has introduced the Farm Bill 2020 to push out the Indian Farmers out of this agony. The massive protest against the bill and shout of the farmers and state government to withdraw the bills are of great concern and is the current issue in the entire nation.

FAQs: Frequently Asked Questions

Ans . The ordinance for the Farm Bill was issued on 5 June 2020.

Ans . The bill has been enacted by Lok Sabha and Rajya Sabha on 17 and 20 September 2020.

Ans . It stands for Agricultural Produce Marketing Committee set by the government for the farmers.

Ans . The farmers of India are protesting against the recently passed Farm Bill 2020.

Ans . It stands for Minimum Support Price and it is the price stated by the government to save the farmers against any fall in prices of agricultural produce.

Ans . Minimum Support Price decides the rates of 23 crops in India.

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July 10, 2024

Most consumers lack familiarity with U.S. farm bill now under consideration

In the latest Consumer Food Insights Report, Joseph Balagtas, professor of agricultural economics at Purdue University and director of the Center for Food Demand Analysis and Sustainability, looked closer at consumers’ familiarity with and attitudes toward the U.S. farm bill. (Purdue Agricultural Communications photo/Kate Jacobson)

Bill contains provisions that receive bipartisan public support

WEST LAFAYETTE, Ind. — The general public has limited knowledge of the U.S. farm bill that politicians are debating on Capitol Hill, according to the June 2024 Consumer Food Insights (CFI) Report.

The survey-based report out of Purdue University’s Center for Food Demand Analysis and Sustainability (CFDAS) assesses food spending, consumer satisfaction and values, support of agricultural and food policies, and trust in information sources. Purdue experts conducted and evaluated the survey, which included 1,200 consumers across the U.S.

“Around one-third of American adults have never heard of the bill, while a similar proportion has heard of the bill but do not know what programs it supports,” said the report’s lead author, Joseph Balagtas , professor of agricultural economics at Purdue and director of CFDAS. “The farm bill encompasses hundreds of millions of dollars and touches every part of the food system.”

New survey questions last month explored consumer attitudes toward the farm bill, which the CFI team broke down by self-reported political ideology: liberal, moderate or conservative. The survey asked respondents to rank six broad policy areas aligned with the CFI’s sustainable food purchasing (SFP) index subindicators in order from most to least prioritized.

How familiar are American adults with the U.S. farm bill, and what do they want it to prioritize?

The results reveal some similarities and some differences between what consumers want in the farm bill and what they value in their own food consumption.

“Our data show that consumers consistently rank taste, affordability and nutrition as the most important values when they shop for groceries. When we asked them to rank their priorities for the farm bill, affordability/economic sustainability and nutrition ranked high, as well,” Balagtas said. “But taste was not a consumer priority for the farm bill. And while consumers do not rank environmental sustainability as an important value for their own food shopping, they do rank it highly as a priority for the farm bill.”

Consumers may hold certain beliefs, like that the climate and the environment are important to address at the policy level, he said. But their individual purchasing behavior might not reflect the same sentiment as their decisions that are guided more by taste and affordability.

Two key components of the farm bill — farm subsidies and government spending on food and nutrition assistance — are heavily debated topics in the political world. Even so, most American adults (about 70%) support both farm subsidies (which include reduced crop insurance premiums, price support and conservation incentives) and food and nutrition assistance spending such as Supplemental Nutrition Assistance Program (SNAP) benefits.

“When breaking down the results by self-identified political ideology, we see that support is bipartisan,” Balagtas said. “The majority of liberals, moderates and conservatives are in support of both farm subsidies and federal nutrition assistance.”

In the previous month, there were no major changes in food spending and inflation expectations or estimates. When sorting inflation expectations and estimates by political ideology from June 2022 to June 2024, however, differences arise. 

Do American consumers support farmer subsidies?

Despite a downward trend in the consumer inflation estimates and expectations over time, those with liberal views have been more likely to estimate and predict a lower level of food inflation than moderate and conservative consumers. In June 2024, conservative consumers estimated that food prices had gone up almost twice as much as what liberal consumers estimate.

“Given that inflation is a common talking point in political discussions and can be a polarizing issue, it will be worth revisiting inflation expectations and monitoring food prices in the months after the upcoming 2024 U.S. presidential election,” said Elijah Bryant, a survey research analyst at CFDAS and one of the co-authors of the report. “This may provide further insight into whether political leanings influence these estimates.”

Food insecurity rose slightly to 13% in June. The reported rate of SNAP has been higher on average among liberals (20%) compared to moderates (17%) and conservatives (13%), according to the last 30 months of data.

“The correlation between SNAP use and political leanings is in line with the degree of support these three groups show for government spending on food and nutrition assistance,” Bryant said.

Do American consumers support government spending on food and nutrition assistance?

The SFP index rose two points, to 72, from March 2024. Americans continue to score higher for taste, economics and security sustainability, and relatively low on social and environmental sustainability.

“We see some differences in food sustainability scores across political affiliations,” Bryant said. “Liberals on average have higher SFP scores than moderates and conservatives, driven largely by higher scores in environmental, social and nutritional sustainability.”

Eating a vegetarian or vegan diet is more common among liberal consumers. The rate of vegetarianism or veganism among this group is around twice as high as it is among moderate and conservative consumers.

Liberal consumers also report choosing unconventional food items more often than moderate and conservative consumers. Such items include cage-free eggs, plant-based proteins and organic foods.

“However, when it comes to recycling and reducing waste, we see similarities among consumers of all political views,” Bryant said.

“Understandably, we see some differences in what consumers believe about the food system based on their political leanings,” Bryant said. This especially applies to the level of agreement with statements about the link between the food system and the environment.

A majority of liberal consumers believe eating less meat is better for the environment (70%) compared to only 31% of conservative consumers. Similarly, 71% of liberals think agriculture is a significant contributor to climate change relative to 29% of conservatives.

“However, most consumers agree that local food is better for the environment, regardless of political leanings,” Bryant said. 

The Center for Food Demand Analysis and Sustainability is part of Purdue’s Next Moves in agriculture and food systems and uses innovative data analysis shared through user-friendly platforms to improve the food system. In addition to the Consumer Food Insights Report, the center offers a portfolio of online dashboards .

About Purdue University

Purdue University is a public research institution demonstrating excellence at scale. Ranked among top 10 public universities and with two colleges in the top four in the United States, Purdue discovers and disseminates knowledge with a quality and at a scale second to none. More than 105,000 students study at Purdue across modalities and locations, including nearly 50,000 in person on the West Lafayette campus. Committed to affordability and accessibility, Purdue’s main campus has frozen tuition 13 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its first comprehensive urban campus in Indianapolis, the Mitchell E. Daniels, Jr. School of Business, Purdue Computes and the One Health initiative — at https://www.purdue.edu/president/strategic-initiatives

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When is a farm bill not a farm bill? When it’s loaded with troubling provisions

A farm bill debate in Congress might conjure up visions of rustic barns and amber waves of grain. So it may surprise you to learn that this legislation could expose kids to pesticides, cut funding for hungry Americans and worsen the climate crisis.

Some parts of the farm bill do address agriculture directly, including billions of dollars in bloated farm subsidies funded by taxpayers that go to a handful of farmers – even when total farm incomes reach new heights.

But the bill covers much more than crops and cattle. And if House Republicans get their way, the health and safety of millions of people could be on the line.

Blocking pesticide safeguards 

The bill would make it much easier for Big Ag to spray potentially harmful chemicals on fields close to schools and near neighborhoods where people work and live.

Some of these chemicals have been linked to serious health concerns, including cancer, Parkinson’s disease and harm to development and reproduction. Children are especially susceptible to potential health problems. Yet the House farm bill would block efforts by states and towns to prevent pesticides from being sprayed near schools throughout the U.S.

Pesticide manufacturers favor blocking states and local governments from requiring additional warnings and use restrictions on their products. The bill would also help minimize the companies’ liability for related health problems and protect their bottom line. 

Funding fight

The House farm bill is also bad news for the 41 million Americans living on a low income who rely on SNAP, the Supplemental Nutrition Assistance Program, to put food on the table. It would cut $30 billion in anti-hunger funds from SNAP, the Department of Agriculture program that leads U.S. anti-hunger efforts and is funded in the farm bill.

Where would that money go instead? It would be used for skyrocketing subsidies for a handful of large peanut, rice and cotton farmers, primarily in  Southern states . 

Farm subsidies have long been out of control, with billions going to the largest farms, which don’t need the help. Between 2021 and 2023, farmers collected more than $55 billion in taxpayer-funded farm subsidies, even as national net farm income was higher on average than any time in the  past 20 years .

Increasing these subsidies will drive up the costs of renting and buying land, further tilting the playing field against  Black ,  young and small family farmers when many small farms already struggle, and many have been pushed out of business.  

Climate catastrophe

Not content with exposing kids to pesticides and letting people go hungry, the House farm bill would also move money away from actions that reduce agriculture’s greenhouse gas emissions. The sector already makes up about 10 percent of U.S. emissions and is set to rise.

To fight the climate crisis, agriculture’s emissions must be reined in. But the bill would scrap guardrails designed to ensure that a significant amount of USDA funding goes to climate-smart practices that reduce emissions and build soil carbon.

Practices such as cover crops also benefit water and air quality. In 2022, the Inflation Reduction Act included over $19 billion in additional funds for farmers to use to implement farming practices that help the climate through steps that reduce greenhouse gas emissions.

Farmers and ranchers  want to use these kinds of climate-smart practices . But  more than half the applicants for this conservation funding have previously been turned down because of high demand. 

If Congress removes the climate focus of the remaining $19 billion, the USDA will likely revert to its previous ways, when less than one-quarter of conservation funding flowed to practices that reduced greenhouse gas emissions. The increase in  emissions could be massive . 

A farm bill for the few

Instead of obstructing state and local government efforts to protect people from the harmful effects of pesticides, the House should remove itself from the picture.

Instead of forking over more taxpayer dollars for farm subsidy programs, the House should reform them to save taxpayers money and develop more equitable federal farm policy.  

Instead of shifting funding away from programs that can reduce agriculture’s greenhouse gas emissions, the House should encourage innovations that tackle the climate crisis.

If you’re a pesticide company, a Big Ag business or just a consumer satisfied with where your family’s next meal is coming from, the House farm bill may seem a winner.

For everyone else – children, taxpayers, small farmers, farmers from underrepresented groups, and people experiencing food insecurity – it’s a clear loser.

View the discussion thread.

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Kamala Harris or Bust

By Tressie McMillan Cottom

Opinion Columnist

President Biden’s decision to withdraw was probably a foregone conclusion a week ago.

Major donors and trusted advisers had made their preference known. So had many members of the House and the Senate. These are people whose political identity was formed in the same political context as Biden’s. They believe that the system works. They believe that dedicated public servants supersede mercurial electoral politics. Whether you agree with their assessment of politics, this nation needed an institutionalist in 2020. Biden was the most institutional candidate.

This election is a referendum on the kind of politics that made Biden: Can the system still be trusted to work?

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Vice President Kamala Harris is the only choice to replace him. That now makes her the leader of the Democrats’ future. The Democratic National Convention is not the time to litigate her ability to take over for Biden. The time to do that was in 2020.

This election is not a competition between two equally matched candidates with merely competing visions for America. It is a race between a man who intends to be king and the party that stands in his way. The only conversation Democrats should be having with voters at this point is that a second Trump presidency would remake this country as we know it.