Model Contract Farming Act, 2018

The final Model Act “The State/UT Agricultural Produce and Livestock Contract Farming and Services (Promotion & Facilitation) Act 2018” has been approved by the Competent Authority.

Salient features of Model Contract Farming Act, 2018 are:

  • Farmer Protection: The Act lays special emphasis on protecting the interests of the farmers, considering them as weaker of the two parties entering into a contract.
  • Contract Farming: Contract framing to be outside the ambit of APMC Act.
  • In addition to contract farming, services contracts all along the value chain including pre-production, production and post-production have been included.
  • FPOs: Promotion of Farmer Producer Organization (FPOs) / Farmer Producer Companies (FPCs) to mobilize small and marginal farmers has been provided
  • Protecting Farm Land:
    • No rights, title ownership or possession to be transferred or alienated or vested in the contract farming sponsor etc.
    • No permanent structure can be developed on farmers’ land/premises
  • Contract Farming Facilitation Group (CFFG) for promoting contract farming and services at village/panchayat.
  • Accessible and simple dispute settlement mechanism at the lowest level possible provided for quick disposal of disputes.

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