grain storage business plan pdf

• CHIEF AGRI USA

Your complete guide to planning a farm grain storage facility

by katie simmons | Mar 14, 2023 | Blog

Farming involves making big decisions that impact the nation’s food supply — one of which is grain storage. Wisely deciding when to store harvested grains can be a smart economic move, as prices typically increase over time.

Commercial grain elevators often pile their grain outside for temporary storage. Though this is initially an inexpensive investment, it leaves grain exposed to the elements and increases the possibility of spoilage. An alternative solution is renting permanent on-site storage at a commercial facility or another farm; although it’s an extra expense now, farmers are likely to see returns in saved bushels down the line.

For farmers wanting to retain control of their grain and ensure maximum protection from the elements, constructing a long-term storage facility on your farm is essential. Before you connect with your dealer to make a purchase, it’s critical to think through all the essential planning steps to ensure long-term success storing grain on your farm. Here’s some good advice as to why and how a farmer should store grain on their property.

Two key reasons for on-site storage

Jose Meza, Iowa district manager for Chief Agri, gives two primary reasons farmers decide to invest in an on-site  grain storage facility . “The convenience of having a facility on the land they farm improves truck turnaround,” says Meza. “There’s nothing more frustrating for a farmer during harvest than having a combine sitting in the field waiting to be unloaded because the trucks can’t get back to the field fast enough,” he says.

The other reason is basic economics — supply and demand. A grain storage facility allows farmers to choose when and where to sell their grain based on their best market conditions.

Remember to plan for expansion

Meza emphasizes the necessity of long-term planning for grain storage. He often sees commercial elevators adding storage to current facilities as they transition from piling grain on the ground to a more secure storage system. “If they’ve traditionally been piling a million bushels of grain, they know storage for 1 million bushels will fill quickly, and they’re more likely to take that step towards building a larger storage facility,” says Meza, who acknowledges that kind of storage is something most farmers evolve into over the years.

 Farmers typically know how much grain they might produce every year, but typically facilities are expanded over time.  “Every year, new species and hybrids hit the market for better yields,” says Brent Whitefoot, Chief Agri’s district sales manager for Nebraska. “Whatever they think their capacity needs are today, they’re probably going to need more storage space in future years.” Whitefoot counsels farmers to consider the benefits of planning for a facility with a larger capacity than they think they need right away.

Both Meza and Whitefoot can recall examples of folks who’ve spent more money modifying poorly planned facilities than they would have if they had planned for a larger facility in the first place. And since Chief products are built to last, you can trust your Chief facility will serve you many years as you grow in your business and increase your yields.

Before you get started, consider these three tips:

1.  Invest in quality equipment for the long term. While it can be tempting to cut corners and reduce your costs, remember that getting it right the first time is more cost-effective than being forced into changing it later.

2.  Make sure you have a master plan. Just like your business plan for your farm allows for growth and change over the years, you should have a master plan in place for your buildings, including grain storage facilities. Knowing where you want to be 10 or 20 years from now will guide your decisions today, such as where you will build any new structures and additional handling equipment. The specialists at Chief Agri and Chief Agri’s dealers can help you develop a master plan to include grain storage facilities that incorporate space for a future truck load out system or bucket elevator.

3.  Keep up on maintenance. A grain storage facility isn’t just a long-term investment for you; if you take care of it, it will last decades. “When the bin is empty, do your inspections and cleaning, and you will be able to pass it on to another generation,” says Meza.

Storage site considerations

With your master plan in hand, here are some considerations to ensure your facility will enhance your operations for years to come.

Water and weather.  Examine your property to determine where water will flow and where it will run. Do you have drainage systems in place? How will they affect your grain storage facilities? Of course, keeping your driveways dry is critical. Another consideration is the weather. When it snows, where does the snow drift on your property?

“You don’t want to build too close to a shelterbelt to avoid snow drifts that could close access to your driveway and prohibit your semi from getting through in the wintertime,” says Whitefoot.

Overhead and underground utilities.  Overhead power lines are a big concern when building your grain storage facility. Make sure your current building site and future expansion plans allow for proper clearance from power lines. Remember to check underground, too, and know before you dig. Consult a company that will mark utilities on your property to avoid expensive and potentially dangerous situations like building on top of a natural gas pipeline, for instance.

Room for augers, trucks and expansion.  It’s worth repeating: Planning can save you giant headaches and expenses down the road. For example, your grain storage facility needs space beyond the concrete footprint on which it will sit. Think through truck traffic on your property — will loaded trucks have room to turn? Does your plan allow adequate space for augers? And if you expand in the future, ensure these elements still have the required space.

Airflow.  One of the most critical planning elements to consider is airflow. Keeping grain at the right moisture content for long-term storage can be difficult — especially in large commercial facilities due to the sheer volume of grain — but proper airflow helps. “Regardless of what they build, you have to make sure it has adequate airflow,” says Whitefoot.

“I always tell people that if you design a system around 1/10 of cubic feet per minute per bushel, and if you put good quality grain in the bin at the proper moisture level, you can keep it there at 1/10  CFM,” says Whitefoot. “Poor quality grain or grain with higher moisture content needs more airflow to establish equilibrium to allow storage for several months.”

“But remember that more horsepower doesn’t always equate to more air,” says Meza.

Elevate your operations with Chief Agri

If you’re ready to elevate your operations with long-term grain storage facilities or if you’re unsure  what type of grain storage facility is right  for you,  contact  the folks at Chief Agri today. After all, they’ve been in the grain storage business for 60 plus years and know exactly what you need to consider.

Adding grain storage to your property is one of those big decisions that will significantly impact your operations. And if you do it right, it will benefit you and the next generation of farmers for years to come.

Sponsored content by Amy Carpenter-Driscoll, Brand Ave. Studios contributing writer

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GrowNotes - Grain storage

Published: 7 Mar 2024

On-farm grain storage is a significant component of many Australian cropping operations. Growers who manage their storage facilities and operations create the opportunity to develop preferred-supplier partnerships with key grain traders and to become ‘price makers’ rather than ‘price takers’.

With on-farm grain storage systems a significant investment to set up and manage, growers need to take a strategic approach to planning and managing  it. A strategic development plan for investment in grain storage provides greater opportunity to manage variable production years and crops while ensuring grain quality.

Another key component to storing grain on farm successfully is having the knowledge of best-practice management to avoid costly quality issues and disasters.

'GrowNotes™ - Grain storage' provides information, links to other resources and contacts to enable a base understanding of how to manage on-farm storage successfully.

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सहकारिता मंत्रालय Ministry of Cooperation

भारत सरकार Government of India

• Strengthening of PACS

World's largest Grain Storage Plan in Cooperative sector

India holds 11% (16 Crore Hectare) of World’s total Cultivable Area (138 Crore Hectare) and 18% (140 Crore) of Total World Population (790 Crore). This means that to meet the food requirement of the 18% of World Population, India only has 11% of Cultivable Land. Based on the FAO Statistical Data 2021, total Food Grain Production in India is 311 MMT and total Storage Capacity in India is only 145 MMT, i.e, there is a shortage of 166 MMT od Storage. There is surplus Storage capacity in other countries 131%, while in India there is a shortfall of 47%. 

Recognizing the significance of cooperatives as a potent force for economic growth, the Prime Minister of India Shri Narendra Modi has emphasized the need to harness their potential and foster their evolution into thriving business ventures, embodying the vision of "Sahakar-se-Samriddhi" (Prosperity through Cooperation). To drive this vision, the Ministry of Cooperation has introduced an unprecedented initiative—the 'World's Largest Grain Storage Plan in Cooperative Sector.

This visionary plan entails establishing diverse agricultural infrastructure at the level of Primary Agricultural Credit Societies (PACS), encompassing warehouses, custom hiring centres, processing units, and more. By elevating PACS into multifunctional entities, this strategy aims to reduce food grain wastage through enhanced storage capacity, fortify the nation's food security, and empower farmers to command better prices for their produce.

India houses over 100,000 PACS, boasting a substantial membership exceeding 130 million farmers. Recognizing their pivotal role in shaping the agrarian and rural landscape of the Indian economy, and capitalizing on their extensive outreach to the grassroots, this initiative seeks to establish decentralized storage facilities at the PACS level, alongside other agricultural infrastructure. This endeavour not only bolsters the nation's food security but also empowers PACS to metamorphose into dynamic economic entities.

Implementation Plan:

An Inter-Ministerial Committee (IMC) has been formed under the leadership of the Minister of Cooperation. The committee include the Minister of Agriculture and Farmers Welfare, Minister of Consumer Affairs, Food and Public Distribution, Minister of Food Processing Industries, and relevant Secretaries as members. Their role is to adapt guidelines and implementation approaches of respective Ministries' schemes, as needed, within approved budgets and set objectives. This adaptation aims to facilitate the realization of the 'World's Largest Grain Storage Plan in Cooperative Sector.' This initiative involves creating infrastructure such as warehouses for agricultural and allied purposes, primarily at selected viable Primary Agricultural Credit Societies (PACS) in 24 States /Union Territories.

Expected Benefits of the Plan:

The plan has dual objectives. Firstly, it addresses the lack of agricultural storage infrastructure by establishing godowns at the PACS level. Additionally, it empowers PACS to engage in other roles:

• Acting as procurement centres for State Agencies/ Food Corporation of India (FCI).
• Functioning as Fair Price Shops (FPS).
• Establishing custom hiring centres.
• Creating common processing units for sorting, grading, and more.

This decentralized storage will reduce food grain wastage, enhancing national food security. Farmers will have options to avoid distress sales, leading to better prices. This approach minimizes transportation costs between procurement centres, warehouses, and FPS. Employing a 'whole-of-Government' strategy, the plan strengthens PACS by diversifying their activities and increasing farmers' incomes.

To learn more about the Storage Structure and concept of Grain Storage as a whole, please click on the video link below:

For more details click here:

https://www.cooperation.gov.in/worlds-largest-decentralized-grain-storage-program-cooperative-sector-ensure-food-security#maincontent

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Grain storage infrastructure

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• Sector & Subsector

Pipeline Opportunity

Business case, impact case, enabling environment, marketplace participants, target locations.

Provide storage facilities for grain value chains like maize, rice, cassava, yams through silos, grain conveyors, grain dryers, vacuum hermetic fumigation and gas hermetic storage. Also offer complementary logistic services to aggregate production.

Address post-harvest losses and contribute to food security of agricultural households.

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• (I) World Bank database. https://data.worldbank.org/ (II) IHS Markit. Comparative Industry Forecast Tables, Agriculture, ISIC Classification Rev. 4. (III) Republic of Ghana (2017). Medium-Term National Development Policy Framework: An Agenda for Jobs: Creating Prosperity and Equal Opportunity for All (First Step) 2018-2021. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/08/23/Medium-term+Policy+Framework-Final+June+2018.pdf (IV) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. 2020. The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (V) Ministry of Food and Agriculture (2018). Investing For Food and Jobs (IFJ): An Agenda for Transforming Ghana’s Agriculture (2018-2021). https://mofa.gov.gh/site/images/pdf/National%20Agriculture%20Investment%20Plan_IFJ.pdf (VI) Send Ghana (2014). Women and Smallholder Agriculture in Ghana - Policy Brief 2014. https://www.sendwestafrica.org/phocadownload/Women%20and%20Smallholder%20Agriculture%20in%20Ghana%20Policy%20Brief%20-%20Copy.pdf
• (1) Ghana Investment Promotion Centre (2017). Doing business in Ghana - To Know and Invest in Ghana. (2), (4), (5), (6), (7) Manandhar, A. and Milindi, P. (2018). An Overview Of The Post-Harvest Grain Storage Practices Of Smallholder Farmers In Developing Countries. Agriculture. https://www.researchgate.net/publication/324539264_An_Overview_of_the_Post-Harvest_Grain_Storage_Practices_of_Smallholder_Farmers_in_Developing_Countries (3) Smith, P., House, J. and Sobocka, J. (2016). Global Change Pressures on Soils from Land Use and Management. Global Change Biology, Wiley. https://hal.archives-ouvertes.fr/hal-01444070/document (8) Jebuni, S. (2014). Evaluation Of Farmers Storage Structures And Their Effects On The Quality Of Sorghum Grain In WA West District In The Upper West Region Of Ghana. Kwame Nkrumah University of Science and Technology. http://ir.knust.edu.gh/bitstream/123456789/7727/1/STEPHEN%20NGMENGU%20JEBUNI.pdf (9) Rutten, M. and Verma, M. (2014). The Impacts Of Reducing Food Loss In Ghana. A Scenario Study Using The Global Economic Simulation Model MAGNET. LEI Wageningen UR. https://edepot.wur.nl/328240#:~:text=Each%20year%2C%20Ghana%20is%20estimated,topic%20for%20the%20Dutch%20government (10) Worldometers (2020). Ghana Population 2020. https://www.worldometers.info/world-population/ghana-population/ (11) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - All Years. https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&metric=prc (12) National Development Planning Commission, Ghana Statistical Service (2018). Ghana SDGs Indicator Baseline Report 2018. https://www.gh.undp.org/content/ghana/en/home/library/poverty/ghana-sdgs-indicator-baseline-report-2018-.html (13), (14) USAID (2018). Ghana: Nutrition Profile. https://www.usaid.gov/sites/default/files/documents/1864/Ghana-Nutrition-Profile-Mar2018-508.pdf (15) Dasori, W., Korbli, M. and Cumba, R. (2016). Emergency Food Security And Market Assessment: Ghana. United Nations World Food Programme (WFP). https://www.wfp.org/publications/ghana-emergency-food-security-and-market-assessment-june-2016 (16) Opoku, H. (2020). Food Security and Nutrition Monitoring System (FSNMS) Ghana. United Nations World Food Programme (WFP). https://reliefweb.int/sites/reliefweb.int/files/resources/WFP-0000119574.pdf (17) Statista (2020_. Ghana - Population Growth 2019 https://www.statista.com/statistics/447519/population-growth-in-ghana/#:~:text=In%202019%2C%20Ghana's%20population%20increased,compared%20to%20the%20previous%20year (18), (19), (20a) Ghana Statistical Service (2020). Production of Agriculture Statistics. https://statsghana.gov.gh/nationalaccount_macros.php?Stats=MjM3NTIyNzgzMy44ODU=/webstats/985rp49861 (20b) National Development Planning Commission (2014). Ghana Shared Growth Development Agenda II (GSGDA II) (2014–2017). Republic of Ghana. http://extwprlegs1.fao.org/docs/pdf/gha152510.pdf (21) Ministry of Food and Agriculture (2007). Food And Agriculture Sector Development Policy (FASDEP II). Republic of Ghana. https://www.grain.org/media/W1siZiIsIjIwMTMvMDIvMjgvMTRfMjhfMTZfNzUxX0ZBU0RFUF9JSV9GSU5BTC5wZGYiXV0 (22) Ministry of Food and Agriculture (2018). Investing For Food And Jobs (IFJ): An Agenda For Transforming Ghana’S Agriculture (2018-2021). http://mofa.gov.gh/site/images/pdf/National%20Agriculture%20Investment%20Plan_IFJ.pdf (23) Government of Ghana (2016). National Nutrition Policy. https://www.unicef.org/ghana/media/1311/file/UN712528.pdf (24) Ministry of Environment, Science, Technology and Innovation (2015). Ghana National Climate Change Master Plan Action Programmes For Implementation: 2015–2020. Republic of Ghana. https://www.weadapt.org/sites/weadapt.org/files/2017/ghana_national_climate_change_master_plan_2015_2020.pdf (25) Ministry of Health (2012). Public Health Act 2012 (Act 851). Republic of Ghana. https://www.moh.gov.gh/wp-content/uploads/2016/02/Public-Health-Act-851.pdf (26) Government of Ghana (2012). Standards Authority Act 1973 (N.R.C.D173). http://extwprlegs1.fao.org/docs/pdf/gha17277.pdf (27) Ghana Investment Promotion Centre (GIPC) (2013). Ghana Investment Promotion Centre Act (Act 865). https://www.gipcghana.com/press-and-media/downloads/promotional-materials/3-gipc-act-2013-act-865/file.html (28), (29), (30), (31) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - 2019. https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&metric=tns&year=20 (32) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - All Years. Financial Value Of Loss (USD). https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&valuechainstep=1&metric=fin&dataview=1&fct=2 (33) Regassa, S. (2014). Does it Pay to Invest in Postharvest Management? An Ex-Ante Cost Benefit Analysis of Reducing Maize Storage Losses in Darimu Woreda, Ethiopia, 2014. https://www.shareweb.ch/site/Agriculture-and-Food-Security/focusareas/Documents/phm_regassa_cba_ethiopia.pdf (34) PwC analysis based on Prof. A. Damodaran data, 2020. (35) International Silo Organisation (2021). Nothing works like a tower silo. https://silo.org/storage-methods/ (36) Štaba, D., Blanda, M. and Dolaček-Alduk, Z. Organization and technology during construction of cement silo. https://www.irbnet.de/daten/iconda/CIB15859.pdf (37) Silos Cordoba (2019). Silos Córdoba has signed a contract for the construction of a grain terminal in Nigeria. https://siloscordoba.com/blog/new-projects/silos-cordoba-has-signed-a-contract-for-the-construction-of-a-grain-terminal-in-nigeria/ (38) Agro Met (2015). Agro Met silos provider. https://www.silos.com.pl/faq,64.html (39) Rutten, M. and Verma, M. (2014). The Impacts of Reducing Food Loss in Ghana. LEI Wageningen UR (University & Research centre). https://edepot.wur.nl/328240 (40) Ghana Grains Council (n.d.). GGC Warehouse Certification. http://www.ghanagrainscouncil.org/en/warehouse-receipt-system/ggc-warehouse-certification/ (41), (42), (43) KPMG (2020). Doing Business In Ghana. https://assets.kpmg/content/dam/kpmg/gh/pdf/gh-Doing-Business-in-Ghana-2020.pdf (44) National Development Planning Commission (2014). Ghana Shared Growth Development Agenda II (GSGDA II) (2014–2017). Republic of Ghana. http://extwprlegs1.fao.org/docs/pdf/gha152510.pdf (45) Ghana Standards Authority. Food, Chemistry and Material Standards (FMS). https://www.gsa.gov.gh/food-chemistry-and-material-standards/ (46) Environmental Protection Agency. Objectives and functions. http://www.epa.gov.gh/epa/about/objectives-functions (47) Ministry of Food and Agriculture. About Ministry of Food and Agriculture. http://mofa.gov.gh/site/about-us/about-the-ministry (48) Food and Drugs Authority. Corporate Profile. http://www.fdaghana.gov.gh/about-us.php

How to Start a Profitable Grain Storage Business in Nigeria/Africa: 5 Key Steps to Success

Muhammed Alhassan

Starting a grain storage business in nigeria or any african country can be a lucrative venture due to the increasing demand for grains and cereals., introduction:.

Starting a grain storage business in Nigeria or any African country can be a lucrative venture due to the increasing demand for grains and cereals. With a growing population and the need to ensure food security, grain storage plays a crucial role in preserving these valuable commodities. This guide will walk you through the essential steps to kickstart your grain storage business, including the required capital, profitability factors, and valuable reference links.

Capital Required for Starting a Grain Storage Business:

• Storage Facilities: To begin, you’ll need a suitable storage facility. The capital required can vary widely based on your chosen scale and location. Smaller warehouses can cost between ₦500,000 to ₦2 million, while larger facilities might demand an investment of ₦10 million or more. It’s essential to assess your specific needs and budget accordingly.
• Grain Handling Equipment: You’ll need equipment for loading, unloading, and processing grains. This can include conveyors, grain elevators, weighing scales, and moisture testers. Budget for these items based on your business size, but it’s wise to allocate at least ₦1 million for essential equipment.
• Safety and Security Measures: Ensure the safety and security of your stored grains with investments in fire suppression systems, pest control measures, and surveillance equipment. Allocate around ₦500,000 to ₦1 million for these purposes.
• Licensing and Permits: Obtain the necessary licenses and permits, which can vary by location. Budget an estimated ₦200,000 to ₦500,000 for legal compliance.
• Working Capital: You’ll need working capital to purchase the initial stock of grains and cover operational expenses (staff salaries, utilities, maintenance, etc.) until revenue starts flowing. Allocate at least ₦2 million for this.

Profitability Factors:

• Market Demand: Assess the demand for grain storage services in your area. Nigeria and many African countries experience seasonal fluctuations in grain prices, making storage services invaluable to farmers and traders looking to preserve their crops for better market prices.
• Location: Your storage facility’s proximity to grain-producing regions and transportation hubs can significantly impact profitability. A strategic location can attract more clients and reduce transportation costs.
• Quality Management: Ensure proper grain handling and storage practices to maintain the quality of stored grains. High-quality grains can command premium prices in the market, increasing your profitability.
• Diversification: Consider offering related services such as grain cleaning, drying, and packaging to diversify your income streams.
• Marketing: Develop effective marketing strategies to reach potential clients, including farmers, cooperatives, and agribusinesses. Utilize digital marketing and partnerships with local agricultural associations.

Reference Links:

• Nigeria Investment Promotion Commission (NIPC) : Check for investment guidelines and resources in Nigeria.
• Food and Agriculture Organization (FAO) : Access valuable information on grain storage best practices and global agricultural trends.
• Central Bank of Nigeria (CBN) : Explore financing options and agricultural development programs in Nigeria.
• Nigeria Agribusiness Group : Connect with industry associations and networks for support and market insights.

Conclusion:

Starting a grain storage business in Nigeria or Africa can be a profitable venture, but it requires careful planning, investment, and dedication. Assess your capital needs, consider profitability factors, and ensure you maintain high-quality standards in grain storage. By following these steps and leveraging the provided reference links, you can embark on a successful journey in the grain storage industry.

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INDAME GRAINS MARKET BUSINESS PLAN

Business plan igaragaza uko wacunga warehouse business

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According to Corral, Díaz, Monagas andGarcía (2017),the objective of increasing agricultural incomes in developing countries ranks high on the political agenda. Especially, in Sub-Saharan Africa (SSA), the majority of the population lives in rural areas with higher levels of poverty than in urban areas, and almost all rural households depend directly or indirectly on agriculture. Rwanda " s agricultural policies are embedded in a frame work of conventions and protocols such as the Millennium Development Goals (MDGs), Sustainable Development Goals (SDGs), the New Partnership for African Development (NEPAD), Common Markets for Eastern andSouthern Africa (COMESA), the East African Community (EAC), Vision 2020, the Economic Development and Poverty Reduction strategy(EDPRS) and finally the Plan for Strategic Transformation of Agriculture (PSTA). The government has initiatedCrop Intensification Program (CIP) to increase productivity for six priority crops namely Maize, Wheat, Rice, Irish potato, Beans and Cassava. Taking Maize as a case study, the present research analyzed the role of agriculture policies in improving maize production in Rwanda during 1995 to 2018. The data were provided by the National Institute of Statistics of Rwanda (NISR) and Index Mundi and they were analyzed using Eviews 8 software. The research found that agriculture policies have led to important achievements: Maize production passed from 57 metric ton to 660 metric tons; The individual consumption of maize passed from an estimation of 9.87 kg per year to 43.24 kg; Maize importation passed from 4 metric tons to 107 metric tons; Rwanda started exporting maize since 2010 starting from 5 metric tons to 10 metric ton since 2012 up to 2017. However, despite such impressive achievements, the research noted that many efforts have to be engaged because the production remains lower that required to satisfy the food security for the population.

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Land‐scarce Rwanda is an unlikely place in which to find ‘land grabbing’. However, an ongoing legal, institutional and financial re‐configuration of the agricultural sector in Rwanda facilitates increased penetration of rural smallholder farming systems by Rwandan and international capital which may include some large‐scale ‘land grabbing’ by foreign corporations. More often, foreign agricultural investment in Rwanda is likely to take the form of involvement in contract farming arrangements with cooperatives. Such contracts are facilitated by the state, which when necessary uses coercive mechanisms as well as highly interventionist strategies (such as regional crop specialization policies and mandatory land use consolidation)to create an ‘enabling environment’ for agricultural investment. The Rwandan government has adapted neo‐liberal tools, such as ‘performance management contracts’, through which it makes local public administrators accountable for agricultural ‘development’ targets, which are often explicitly linked to corporate interests. Philanthropic activities by international development agencies are also often intertwined with the activities of the state and foreign capital, so that a variety of actors and objectives are collaboratively changing the relations between land and labour, and exposing smallholder farmers to regional and global markets. Such processes suggest that the global ‘land grab’ is only one aspect of broader patterns of reconfiguration of control over land and labour in the Global South, and that critical attention should be paid to various modes of ‘agricultural investment’, not just acquisition of large areas of land.

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Rwanda is implementing the self-sustaining extension system through Farmer Field Schools (FFS) and Farmer Promoters (FP) approaches. The objective of this paper was to find out the impact of self-sustaining extension system in order to help stakeholders to improve its current implementation. The methodology includes a desk review of reports, face to face interview with 60 participants and 5 focus group discussions between February and May 2016. It also includes the interview of 400 trained farmers and 400 non-trained farmers. It was found that 92% of the trained FFS facilitators and 62% of the farmer promoters were very active in extension services. It was also found that for beans, the highest average yield was 1.2 t/ha for non-trained farmers, 1.5 t/ha for FFS farmers, 1.3 t/ha for FP farmers and the average yield of all the farmers was worked out to be 1.4 t/ha. It was found that FFS trained farmers produce 37.5% more than non-trained farmers while farmers trained by Farmer Promoters produce 10.8% more than non-trained farmers. In general, 37.8% of farmers apply Good Agricultural Practices (GAP) among the non-trained farmers, 73% of FFS farmers use the GAP and 68.3% of the FP farmers adopt the GAPs. It was found that 20% of the FFS group activities are involved in various income generating activities compared to non-trained farmers (10%). It is concluded that the implementation of self-sustaining agricultural extension system in Rwanda has a strong impact in agricultural development through motivation and increased trainings of farmer promoters.

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Make Your Note

World's Largest Grain Storage Plan in Cooperative Sector

• 03 Jun 2023
• GS Paper - 2
• Government Policies & Interventions
• GS Paper - 3
• Growth & Development
• Industrial Growth

For Prelims: Cooperative sector , Food security , Primary Agricultural Credit Societies (PACS) , Inter-Ministerial Committee , Food Corporation of India , District Central Cooperative Banks , Union Budget 2023-24.

For Mains : Primary Agricultural Credit Societies (PACS)

Why in News?

The Union Cabinet has given its approval for the establishment of the "world's largest grain storage plan in the cooperative sector " with an outlay of around Rs 1 lakh crore.

• The initiative aims to curb crop damages, prevent distress sales by farmers, and bolster the country’s food security.

What are the Major Highlights Related to Grain Storage Plan?

• This ambitious project aims to converge eight ongoing schemes of three ministries to address the shortage of agricultural storage infrastructure in India.
• Ministry of Cooperation will implement a pilot project in at least 10 selected districts.
• An Inter-Ministerial Committee (IMC) will be constituted under the chairmanship of the Minister of Cooperation , with the participation of the Ministers of Agriculture and Farmers Welfare , Consumer Affairs, Food and Public Distribution, and Food Processing Industries, along with the concerned secretaries.
• The Ministry of Cooperation has developed the grain storage plan to leverage the strength of cooperatives and transform them into successful business enterprises, aligning with the vision of "Sahakar-se-Samriddhi" (Cooperation for Prosperity).
• India has over 1,00,000 PACS with a vast membership base of more than 13 crore farmers.
• Given their significant role in the agricultural and rural landscape, the plan seeks to empower PACS by creating decentralised storage capacity and other necessary infrastructure.
• This transformation will enhance the economic viability of PACS and contribute to the growth of the Indian agricultural sector.
• Addressing Infrastructure Shortage: The plan aims to establish godowns at the level of PACS to alleviate the shortage of agricultural storage infrastructure in the country.
• This diversification will enhance the incomes of farmer members.
• Reduction of Food Grain Wastage: By creating decentralised storage capacity at the local level, the plan aims to reduce grain wastage, contributing to improved food security.
• Preventing Distress Sale: The plan provides farmers with various options, preventing distress sale of crops and enabling them to realise better prices for their produce.
• Cost Reduction: The establishment of storage facilities at the PACS level will significantly reduce transportation costs of food grains to procurement centres and fair price shops.

What are Primary Agricultural Credit Societies?

• Credit from the SCBs is transferred to the District Central Cooperative Banks (DCCBs) , which operate at the district level. The DCCBs work with PACS, which deal directly with farmers.
• The first PACS was established in 1904. They are involved in short term lending. At the start of the cropping cycle, farmers avail credit to finance their requirement of seeds, fertilisers etc.
• The Union Budget 2023-24 has announced Rs 2,516 crore for computerisation of 63,000 PACS over the next five years, with the aim of bringing greater transparency and accountability in their operations and enabling them to diversify their business and undertaking more activities.

UPSC Civil Services Examination Previous Year Questions (PYQs)

Q1. Consider the following statements: (2020)

• In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
• One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.

Which of the statements given above is/are correct?

(a) 1 only (b) 2 only  (c) Both 1 and 2  (d) Neither 1 nor 2

Q2. With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: (2021)

• They are supervised and regulated by local boards set up by the State Governments.
• They can issue equity shares and preference shares.
• They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.

(a) 1 only  (b) 2 and 3 only  (c) 1 and 3 only (d) 1, 2 and 3

Q. In the villages itself no form of credit organisation will be suitable except the cooperative society.” – All India Rural Credit Survey. Discuss this statement in the background of agricultural finance in India. What constraints and challenges do financial institutions supplying agricultural finance face? How can technology be used to better reach and serve rural clients? (2014)