(Group 2) Corporate Farming

7/31/2019 (Group 2) Corporate Farming

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Introduction

THE ISLAMIA UNIVERSITY OF BAHAWALPUR

FARHAN SARWARROLL NO. 10


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Topic Introduction


CORPORATE FARMING


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Group - B

Farhan Sarwar 10

Asma Khan 06

Aysha Muzeemel 08

Fahad Ali 09



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Introduction to Corporate Farming

Brief History of Corporate Farming

Introduction of Corporate Farming in

Pakistan

Issue in Corporate Farming Pakistan



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Govt. Plan for Corporate Farming

Corporate Farming Incentives in

Pakistan

Potential of Corporate Farming in

Pakistan



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Is Corporate Farming Max. Agriculture

Out put in Pakistan

Corporate Farming in the eyes of

Different Agriculturists

Advantages and Disadvantages

Analysis of Corporate Farming in Pak.And Summing-up the whole

Presentation


8/80THE ISLAMIA UNIVERSITY OF BAHAWALPUR

Introduction to Farming


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Particular Method of Agriculture and Specific

Type of Ownership of Land.

Modes of Farming:Peasant Farming System (Family or Individual)

State Farming

Collective Farming

Co-operative Farming

Corporate Farming




Introduction to Corporate Farming


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Working Like a Corporation for the Purpose of

Cultivation.

Structure of C. Farming:

Modern Way of Farming with Limited

Liability

Capital Requirements

Just Like a Joint Stock Company

Large Organizational Units




Brief History of Corporate Farming


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Legally It Started from 1973

Reasons of C. Farming Establishment:

Three Reasons:

Transformation of FarmsTax Deductions for C. Farms

Separate Management and Ownership



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Reasons of Discouraging C. Farming :Two Reasons:

Not Concentrate of Limited Resources

Moderate Individual farms are muchefficient as C. Farms.




Historical Law of Corporate Farming


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What is Minnesotas C. Farm Law?

What is the History of the Law?

What is the Purpose of Law?

What constitutes Farming Under the

Law


Historical Law of C. Farming


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Some Allowable Farm Business Structures

Sole Proprietorship

General and Limited Liability partnership

Authorized Farm Corporation

Nonprofits

Utility Corporations and Transmission

Co-ops.




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Additional Exceptions to the Law

Land purchased and converted for non farm

development

Grandfather Land owned or leased before

certain dates

Land use for growing seed, nursery Plants

Certain small parcels of landGifted land if disposed of within a specific

period of time




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Other States Have Similar Law

Are These Laws Constitutional?




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Introduction


ASMA KHANRoll # 06


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COPRPORATE FARMING IN PAKISTAN


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Fear in landless farmers

No major investment by corporate farmlords

Proposed story in Sindh

Forest and land assigned to corporate farming

Unsure Banks

Landless Framers need of financial facility

Own Worlds


COPRPORATE FARMING ISSUESIN PAKISTAN:


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SUCCESSFUL EXAMPLE OF CORPORATE FARMING


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MINFAL OBJECTIVE

INFORMATION

24.6 per cent to national GDP 46.8 per cent of labour force

49.0 % of total value of industrial

production

Two-thirds of total population lives in

rural areas

About 67 per cent of total export

earnings


GOVERNMENT PLAN:


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Zero rated import tariff

No upper ceiling on land holding

Processing by BOI

Long period lease

Limitation of transfer

Activities available:land development, reclamation of water, crop, fruit,

flower farming, forestry etc


AGRICULTURE SECTOR:INVESTMENT POLICY


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PROSPECTS

(MILLION HECTARES)Total geographical area: 79.6

CULTURABLE WASTE AREA

Pakistan 9. 14

Punjab 1.74Sindh 1.45NWFP 1.08Balochistan 4.87


HARNESSING THECULTURABLE WASTE LAND


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Conductive environment

Major crops

Major Fruits

Availability of technology and man power


Production Aspects:


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Deficit food production causes 1.9 billion dollar

imports.

Available market

Potential of exports


Marketing Aspects:


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PROSPECTS:

Demand

Technical know-how

Trained manpower

Can be started on small piece of land

Export

Assured water supply


OFF-SEASON VEGETABLEPRODUCTION


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Availability of inputs

Cheap labour

TrainingAvailability of land

Marketing Aspects:

Immediate exports

Short-term transit storage


Production Aspects:


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PROSPECTS:

Deficit in edible oil causes 67% imports

1997-2000 resulted from 98000-162000 hectares

Advantage over pollinated seed


SUNFLOWER HYBRID SEEDPRODUCTION


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Production technology

Provision of seedProduction of seed

Raise in level of production

Infrastructure

Technical manpower


Production Aspects:


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Quantity: 300-360 kgCost : 150-170/kg

Price :250-300/kg

Profit :100-130/kg


Marketing Aspects:


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PROSPECTS

demand from Army

utility in certain pharmaceuticals

exports of dehydrated vegetables


DEHYDRATION OFVEGETABLES


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1997-98

onion was at 1.1 million tonnes

potato at 1.4 million tonnes

garlic at 0.08 million tonnes

cauliflower at 0.2 million tonnes

MARKETING ASPECTS

Demand


PRODUCTION ASPECTS


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Introduction


Ayesha MuzammelRoll # 08


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PROSPECTS

PRODUCTION AspectHyderabad, Quetta, Parachanar ,Faisalabad and Multan

Marketing Aspects


TOMATO PASTE PRODUCTION


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Prospects

6 mill tons is rice productionImporting tallow at Rs 1.4bill

Production Aspects

Punjab and sindh

Marketing Aspects


Solvent oil extraction from rice bran


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Prospects

Cattle are 21.1mill,buffaloes 21.4mill,sheep23.8mill and goat 44.2mill

Production AspectsBwp Bwn Rhim yap khan khair pur

Marketing Aspects


Production of Mutton through raisingof sheep and goats


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Prospects

Production Aspects

Marketing Aspects


Dairy Farming


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Prospects

coast line of about 1,100 km along the coast ofSindh andBalochistan provinces.total marine production is a 0.4million tones

Shrimp culture

Processing of fish


Fisheries sector


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Prospects

Production AspectsCitrus production 2.0mill tons(1997)

Mangoes production 0.9mill tons

Apples production 0.6mill tons

Marketing Aspects


Fruit juice making plant


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Prospects

Production Aspects1.New technology for Pakistan2. Import substitution with potential for

export3. A value added project

Marketing Aspects


Production of Furfural from

sugarcane bagasse


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The Potential of Pakistan Corporate

Agriculture Farming


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Pakistans Agriculture Base: Strengths

Abundant agricultural land

Total area 79.6 Mn Hectares (MH)

Cultivated area 22 MH

Irrigated 18 MHRainfed (Barani) 4 MH


The Potential of PakistanCorporate Agriculture Farming


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Contribution to economy

26% to GDP

Employs 44% of labour force (16.35 Mn)

70% of exports (Agri-produce & processed

products


The Potential of PakistanCorporate Agriculture Farming


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4 seasons, tropical weather

Crop production throughout the year

Largest canal irrigation network

Vast tracts of land along Indus Basin -

comprising 5 rivers

Centuries old farming culture


Natural Merits:


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Cost effective and hardworking agricultural

manpower

Low cost irrigation water

Reasonable price of land

Farm to market road network

Competitive cost of inputs


Amongst the lowest cost

producers


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Wheat 21 Mn tons

Cotton 11 Mn bales

Rice 5 Mn tons

Sugarcane 50Mntons

Fruits/Vegetables 10 Mn tons


Crops production


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Fisheries potential (annual catch) 7.5 Mn tons

Buffaloes (Number) 23 Mn

Cattle (Number) 22 Mn

Sheep & Goats (Number) 75 Mn

Poultry (Number) 530 Mn


Fisheries & Livestock production


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Located in food deficit region:

Central Asian Republic (North)

Middle East (South)Iran & Afghanistan (West)

Principal gateway to CARs

Strong historical & traditional links


Strategic location


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Comparative advantage in the region

Vast areas of cultivable waste landavailable

Strong potential for expansion of

agriculture base


Strong Potential


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Large local market

Internationally competitive unit cost of

production

High quality agricultural products

Low transportation cost

International Quality inputs

Market driven polices.


Corporate Agriculture Farming

Objectives


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Most Liberal Investment Policy:

CAF declared as an industry

100% foreign equity allowed

No minimum foreign investment

Remittance of capital, profits, dividends allowed


Investment Policy, Incentives &

Opportunities:


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CAF will enjoy credit & other facilities

Local or foreign, private or public

limited companies to invest in corporate farming

No ceiling on land holding

State land can be purchased, or leased for 50

years.All banks and financial institutions will earmark

separate credit share.


Investment Policy, Incentives &

Opportunities:


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In Addition:

Provincial Agriculture Income Tax (AIT) laws

Dividends

Farm income

Existing definitions of farming activity


Attractive Fiscal Incentives:


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Salient Features


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Import duty @ 0%.

sold or leased to the investors for 50

years

Transfer of land

100% foreign equity

No Government sanction

dividends from tax


Salient Features:


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Companies Ordinance, 1984.

no upper ceiling limit on land holding

Agriculture Income Tax

Tax relief

appropriate labor lawsCustom duty and Sales Tax.


Salient Features:


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Implications of Corporate Agriculture farming


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1). Model for wealthy countries

2). Corporate farms are more interested in

cash crops instead of food crops.

3). CAF increase the production

4). CAF policy is capital oriented instead oflabor oriented


:


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Corporate Farming plan Opposed by PCMCP


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Introduction


Fahad AliRoll # 09


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Dr Ijaz Ahsan


Agriculturists comments


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Corporate farming is a misguided policy that

can only lead to more hunger, more rural poverty

and more pollution.It produces more cash crops for export rather

than food for local and regional consumption.

It is enterprise for profit that enriches the owner

at the expense of local farmers and workers.It cares only for short term profits.


Le muire Jones from Maryland, coordinator

of global hunger alliances says :


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The implementation of corporate farming in

Pakistan will worsen the position of rural poor

and degrade the natural resources The small farmers will displace and favor

unsustainable production of crops over healthy

foods for the people of Pakistan

US agriculture dominated by powerfulcorporations


Dr Ijaz Ahsan views


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Announcement of Federal Minister:

Small landlords will be fully protected


Issue Analysis:


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Local and foreign investors will not displace or

buy the land of small farmers

Small cultivators do not have the resource to go

in for mechanization and other expensive

methods.

Landlords have steadfastly ignored the recentscientific and technological break through in the

field of agriculture.


:


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Riaz-ul-haq director general

Policy and Planning, Board of Investment


Corporate farming policy for Pakistan


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Punjab 6.631millions acresSindh 29842acers

NWPF 3449acres

Balochistan 0.1 millions acres


Riaz-ul-haq director general says :


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Cattle Farming, Meat Processing, Dairy

Farming, Fisheries, off season vegetableproduction, processing packaging, Tomato Paste

Production, Animal feed mills, fruit juice plants


Some Important Projects


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Sindh has proposed 100000/ acre lease per year

with a 20% annual increase.Balochistan has the demanded 50000 per acre for

leasing.


Leasing


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Pros and Cons of corporate farming:



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To remove the confusion of small farmers

Govt has announced 8 point policy package

According to the package the relevant Federal

Minister & the Board of Investment & Ministry

of Food Agriculture and Life Stock will look after

the industrial part of the concept.


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Provincial Revenue Department will take care

of taxation part.

Labor laws are also available to deal with the

labor problems

CBR: will ensure that all imports of agriculture

machinery and strong facilities are exempted

from import duty & sales tax.Agriculture in Pakistan lacks capital. (Affaq

Tiwana)


:


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State & Barren would be offered for corporate

farming

How local farmers will be competing foreign

investors in Pakistan?


Views of Farmers:


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Corporate farming presents bothopportunities and challenges


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FAP supports corporate farming but with

caution

Agriculture sector needs money from the

private sector but certainly not at the cost of poor

farmers who constitute a majority of Pakistan


:


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Mr. Sulaman Hafeez Siddiqui


Special thanks !


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END OF PRESENTATION

(Group 2) Corporate Farming

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