Connecting the Dots
 

Farm Sector: Problem Statement, Intervention, and Targeted Outcome

Problem Statement

A. Technology and Solutions
  1. Very low yields
  2. High cost of farming
  3. Low or no technology adoption
  4. No yield predictability
  5. Large post-harvest losses
  6. No post-harvest storage solutions
  7. Inadequate farm waste disposal solutions
  8. No automation

Intervention

Precision Farming Technology and Solutions enablement:
  • Technology enablement in every aspect of farming from Soil testing to Post-harvesting
  • Research, identification, and introduction of suitable technologies and solutions
Automation and Systems for Farming as for a business entity
  • End to End Automation and Farm ERP development and deployment

Targeted Outcome

Year 1:
Increase in yield by 3x to 5x and reduction in cost by 20% to 30%:
  • Introduce core technologies and solutions (Drip irrigation, Poly-housing, mulching, etc.)
  • Introduce solution for post-harvesting loss containment
  • Farm ERP system (FERP Phase 1 of 2)
Year 2:
Increase in yield by 5x to 7x and reduction in cost by 30% to 50%:
  • Introduce crop mapping, monitoring and yield prediction technologies (Droning, IOT, AI tools)
  • Local post-harvest storage solution (Chillers, collective storage) for reducing losses and extending life of perishables
  • Farm ERP System (FERP Phase 2 of 2)
Year 3:
Increase in yield by 7x to 10x and reduction in cost by 50% to 70%:
  • Introduce precision crop planning, multi-cropping/inter-cropping
  • Mechanization of labour intensive sowing and harvesting practices

Problem Statement

B. Practices
  1. Flood irrigation leading to very low water availability for farming in the adopted cluster
  2. Low/no water harvesting
  3. No soil improvement intervention for many years
  4. No crop planning
  5. No planning, process control and quality control

Intervention

Periodic evaluation of existing practices and corrective action plan:
  • Continuous Assessment of existing practices
  • Continuous Improvement Plan
Facilitate adoption of Best-in-Class Farming Practices:
  • Enable linkages to Agri Research institutions, Universities, etc. for best-in-class practices
  • Enable linkages to Best-in-Class farmers as mentors
Introduce Farming Quality Management System
  • Develop comprehensive Quality Management System detailing all methods and processes.

Targeted Outcome

Year 1:
Engage Agri Research SMEs/Agronomists for periodic evaluation and corrective action on existing farming processes with specific emphasis on:
  • Water Budgeting
  • Water Harvesting
  • Soil conservation and rejuvenation
  • Crop assessment and planning
Initiate Farmer Mentoring Program
  • Training/Regular interaction with Agri Research/Education institutions
  • Establish engagement with Best-in-class Farmers as Mentors/Advisors
Year 2:
Develop and institute Farming Quality Management System
  • Facilitate collaborative development of QMS
  • Enable training for adoption of QMS
  • Develop and institute performance measurement mechanisms
Institute Best-in-Class Farming Practices Competition with significant rewards

Year 3:
Enable Accreditations/Certifications

Problem Statement

C. Developmental
  1. Fragmented Farms and farmers
    Average Farm Size % of Farmers
    <0.4 ha 34.5%
    >0.41 ha – 1 ha 34.9%
    >1.01 ha – 2 ha 17.1%
    >2.01 ha – 4 ha 9.4%
    >4.01 ha – 10 ha 3.7%
    >10.01 ha 0.4%
  2. Very low income
  3. Inability to garner funds for unsubsidized portion or cost of technology
  4. Fragmented farms and farming – inability to negotiate better cost of resources
  5. In-consistent labour
  6. Unorganized market access
  7. No concept of P&L
  8. Farmer migration

Intervention

Enable interim funding for unsubsidized portion of cost of new technologies to small and marginal farmers for adopting farming technologies
  • Funding Pool from internal resources for interest-free funding of unsubsidized cost of technologies
  • 30% to 50% unsubsidized cost funding to farmers for drip irrigation, poly-house, mulching, ponds, etc.
  • Returnable by farmers through increased income from increased yields
  • Returned money goes back to the Funding Pool for supporting more farmers
Facilitate establishment of Farmer Producer Company for organizing farmers:
  • Enabling pooling of resources (equipment, labour, etc.) for farming
  • Enabling development of Supply Chain for cost and delivery efficiencies (procurement, logistics, etc.)
  • Enabling post-harvesting processing and processing units
  • Enabling development of market intelligence, sales and distribution channels
  • Enabling funding to member farmers
Develop farmers as a Business Person:
  • Train farmers on maintaining and managing P&L
  • Enable “Profitable Business Plan” development with comprehensive and consolidated Revenue Plan and Cost targets that are constantly monitored and actioned

Targeted Outcome

Year 1:
Enable funding to 7 to 15 small and marginal farmers for unsubsidized cost of new technologies

Facilitate establishment of Farmer Producing Company
  • Facilitate development of Three Year Development Plan for FPC
  • Handhold it for start of operations
  • Target 250 farmer members in the first year
Train all FPC farmer members in P&L management and development of individual business plan

Year 2:
Enable collateral for institutional funding to small and marginal farmers for unsubsidized cost of new technologies
Facilitate and track development of the FPC as per outlined plan
  • Target 500 to 750 farmer members in the second year
Year 3:
Facilitate development of full scale operation of FPC as per the planned development
  • Target 1000 to 1250 farmer members in the third year

Non-Farm Sector: Problem Statement, Intervention, and Targeted Outcome

Problem Statement

Non-Farm Employment Generation
  1. Lack of awareness of viable rural business opportunities
  2. Lack of funding of enterprises
  3. Lack of infrastructure
  4. Lack of skilled resources
  5. Lack of operational and management expertise
  6. Lack of market access
  7. Lack of business expertise

Intervention

Facilitate development of ‘organized’ micro or small Village Business Enterprises (VBEs) that collectively enable significant rural job creation
  • Identify viable business opportunities for rural setting and facilitate development of business plan
  • Facilitate engagement of SMEs for knowledge transfer on VBE development
  • Enable funding for establishment of VBEs
  • Facilitate infrastructure development
  • Facilitate skilling of resources
  • Enable operational and management expertise
  • Facilitate development of collective sales and distribution channel for VBEs and FPCs
Enable development of Profitable and World-class (PWc) “Core VBEs” through Common Shared Resources, Systems and Practices
  • Facilitate development of Core VBEs – enabling economy of scale
  • Shared: Infrastructure, Multi-skilled Labour, Indirect Labor, Overheads, Platforms, and Systems
  • End to End Automation and ERP development and deployment for all VBEs
  • Common Supply Chain for cost efficiency
  • Common Quality Management System and Performance Management tools
  • Quality certifications and Accreditations

Targeted Outcome

Year 1:
Facilitate establishment of 3 to 5 VBEs generating employment for 30 to 50 people
  • Full handholding for establishment, development and operation of the VBE
  • Interim funding for start of VBEs from internal Funding Pool
  • Enable development of Core VBEs
  • Develop framework and initiate execution for common shared resources, systems, practices (PWc Phase 1 of 2)
Year 2:
Enabling scaling of Core VBEs, and facilitate establishment of new Core VBEs, generating employment for 200 to 300 people
  • Develop incubation center for facilitating Core VBEs
  • Enable collateral for institutional funding to VBEs
  • PWc (Phase 2 of 2)
Year 3:
Sustain and Scale Core VBEs to generate employment for 500 to 1000+ people
  • Bolster Market Access significantly
  • Monitor sustainable Profitability with scale