Corporate Farm

A corporate farm is a business producing food or fiber products that is organized as a corporate entity for tax purposes. It is owned by stockholders and run by a board of directors. A family corporate farm is one where the principle stockholders are related by blood or marriage. A nonfamily corporate farm is one where the principle stockholders have no family relationships. A nonfarm corporate farm is one whose principle stockholders have primary business activities outside of food and fiber production. Corporate farming leads to closed markets where prices are fixed not by open, competitive bidding, but by negotiated contracts, and where producers who don't produce in large volumes are discriminated against in price or other terms of trade

Merits of Corporate Farming Reduced Agricultural Wastage Timely harvesting of crops helps avoid wastage of food. This increases the yield produced from the same input. Did you know? About 2% of the total farmlands in the US, under this type of farming, produce as much as 14% of the overall crop production. Increase in output leads to decrease in food prices. Better Quality Yield Corporates are in a better position to protect crops through extensive use of pesticides. This helps ensure minimal damage to crops and a better quality yield. This farming also encourages the employment of food cultivation techniques that increase the storage life of crops for exports. Reduced Minimum Support Price This farming is definitely synonymous with large outputs that lead to economies of scale. Hence, it helps reduce the minimum support price. This means you pay lesser for the same food than you did 5 years back. This will help keep a check on food inflation and bring down the prices of crops and, thus, makes cheap food available to all and in large quantities. New Technology A concept that is predicted to soon popularize in capital-intensive economies is the precision technology. Tractors will be run through the control of satellites to harvest crops in a much lesser time. This will inadvertently avoid wastage due to deterioration. Boosting the Agricultural Sector Industrialization of agriculture has helped in rapid production of crops to meet the needs of the economy and revived the importance of agriculture in the GDP. It will also contribute to the development of exports. Increase in agricultural production through the use of advanced technology has obviously boosted the agri-scenario in developed and developing economies. Demerits of Corporate Farming Lower Profits for Farming Households

As agribusinesses are widening their horizons in agriculture, this has severely affected the livelihood of many farmers. In economies thriving on this type of farming, farmers face problems of reduced profits or increased costs. This has largely affected the sustainability of their occupations. They are then forced to enter into contracts with companies for growing contracted crops on their farmlands that these corporates buy at their quoted prices. They are left with no decision-making controls. Reduced Nutrition It also compromises on the nutritional value of food by using high amounts of insecticides and pesticides to prevent damage to crops. They blindly use food additives, coloring agents, chemicals and hormone injection to speed up the process of crop maturity. Such genetically modified crops lack nutritional content in comparison to organically grown nutritious crops. This has become a great topic of political and economic debate in recent times. Higher Environmental Costs Mechanization of agriculture through the use of technology has although increased the pace of all production processes, it has made it difficult for the environment to cope up with this speed. It interferes with the natural and biological processes of the environment. Moreover, corporate farming may soon be a threat to the water bodies that will quickly dry up from excess irrigation, polluting of fisheries by disposal of chemical wastes, depletion of oxygen in the atmosphere and increasing threat to all those engaged in agriculture. It also pollutes the soil and is negligent towards animal health welfare. Risk of Monopolistic Economies It tends to encourage food production by only a handful of large companies. This will promote monopoly or oligopoly in the markets by concentration of production capacity and power and create flaws in the existing system of market forces. Corporate farming is not as rosy as it seems. Although its benefits cannot be denied, its negative consequences have far-reaching effects in the long term. Short-sightedness of the government to reap benefits in the present can lead to economic disparity in the future. It also willingly invites intrusion from strong foreign corporates to interfere with the economic and agricultural situation of a country. In translation, there will be insensitivity to the demands of the people as they focus on profit maximization in agriculture. This may mark the onset of severe global food crisis. Contract farming is another way forward to deal with the usefulness of agribusinesses when corporate farming is not used to abuse the commercialization of agriculture. Read more at Buzzle: http://www.buzzle.com/articles/pros-and-cons-of-corporatefarming.html

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How corporate farming impacts the environment

Perry McCarney

Corporate farming is first and foremost about making a profit. Corporations almost always use what is termed the conventional agricultural methods, that have mostly developed since World War II, on large tracts of consecutive farmlands.

The Modern Face Of Farming In The UK

John Hutchinson FEW nations have seen such enormous changes in their farming industry as the United Kingdom. Recent decades have not only brought farmers more than their fair share of drought and flood but also powerful new pressures on their livelihoods that their grandfathers, 50 years ago, could never have imagined.

Farm Technology Changing Agriculture

Lucas Shivers Hi-tech systems offer tractors that operate without drivers No one is denying that technology is changing the face of the world. Tomorrow's technology will bring sweeping changes to every industry, including agriculture, and may one day make it possible to conduct business and control production without a great deal of human labor.

The pros and cons of corporate farming

The half-cooked idea of corporate farming has received special attention of the present regime, but it has evoked more fears than hopes among farmers. Corporate farming still remains a theory for both the government as well as farmers. None of the two parties concerned are sure as to what would be the final shape of the plan.

Corporate farming question

Grave concern is being expressed over the haste with which the government is moving to introduce corporate farming in the country. Brushing aside all objections to what is a highly controversial proposal, the government seems determined to rush through amendments in the Constitution that would allow foreign individuals and corporations to own an unlimited amount of land for this purpose.

Political economy of corporate farming

World food industry's US$2 trillion annual turnover is bringing back transnational companies to the agriculturally rich and fertile lands. This old hunger and lust of the corporate companies for insatiable profit can prove lethal for the poor peasants of our country if appropriate and comprehensive measures are not taken timely by the concerned circles.

Sweeping changes in Land Reforms Act soon

The govt plans to introduce 17 sweeping amendments in the Land Reforms Act 1977 before October polls. The Land Reforms Act was approved during the late Zulfikar Ali Bhutto government.

Government Policy Package for CAF

Government Policy Package for Corporate Agriculture Farming (CAF) is a matter of great controversy within the government circles, civil society organizations and small farmer groups. Its advocates claim that the policy will bring foreign investors, latest machinery and new methods of cultivation in the country. This will not only enhance agricultural production but the improvement in quality as well.

The Natural Way of Farming

When we create a garden and are mindful of the plants growing in it, we ourselves grow from being in closer contact with the same natural cycles affecting the plants. The budding flower unfurls its spring banner before us, the heavy fruit heralds the end of a growing season and the withered stalk whispers of seasons past and yet to come.

Maximising agri output through corporate farming

Agriculturally developed countries have gained much by resorting to corporate farming. Pakistan,

although an agricultural country basically, has not so far taken any concrete step in this direction despite realisation of its benefits.

Little words, very little actions

WSSD was hijacked by free trade talks, a backward-looking, insular and ignorant US administration and its friends in Japan, Canada, Australia and OPEC, a confused EU, and the global corporations.

Corporate farming plan opposed

The Punjab Communist Mazdoor Kissan Party (PCMKF) has strongly condemned the proposal to introduce agriculture corporate farming (CAF), arguing that it will strengthen the US multi-national corporation.

Government Plan
The federal Ministry of Food Agriculture & Livestock (MINFAL) has identified specific fields of agriculture sector of the country with a view to attracting foreign as well as local investors.

Incentive package for corporate farming

Corporate agri-farming has been granted status of an industry by the government under a new package of incentives. The package opens a window for foreign investment in agriculture sector of the country.

The Potential of Corporate Agriculture Farming

Board of investment gives statistics and data to lure investment in to Corporate Farming.

Corporate farming; An Analysis

THE Federal Minister for Food and Agriculture, Khair Muhammad Junejo, has recounted the advantages that would accrue, if an agricultural country like Pakistan were to adopt corporate farming, and has disclosed that the government has decided to go ahead with the scheme.

The Quaid on corporate farming

The Quaid-i-Azam had, even before the establishment of Pakistan, declared to eliminate this evil from the society. But it is strange that Pakistani rulers, in spite of their claims of following the ideas of the Quaid, not only supported it but also provided legal cover to it in one form or the other.

Corporate farming vs land reforms

The frequently talked of, but much-feared by, landless farmers is the corporate farming which is to become a reality in Sindh. That is not to be the outcome of a federal agricultural policy , although the centre has been subscribing to it. But it is the outcome of the initiative taken by reformers whose leaders are ministers in the federal and the Sindh government.

Corporate farming; Spelling disaster for Farming community ?

It is difficult to agree with the federal government's plan to introduce corporate agriculture farming as its negative aspects far outweigh its finer points.

Corporate farming or corporate greed?

The remedy our government is proposing--under the trade liberalisation regime--is to hand over our food production to TNCs. In other words, if our farmers cannot afford to eat bread, why don't they eat cakes?