ABSTRACT

Topic – Economic and Legal Aspects of Co-operative Farming

Co-operative farming is a type of farming where conducted by individuals on their own holdings
jointly with certain common agencies formed on their behalf for the collection and purchase of
agricultural imnputs like seeds, fertilizers, equipments etc and also for the of their agricultural
produce.

“Co-operative holding of land with cultivation on individual holding. The individual hold their
plots of land on payment of rent to their own co-operative society.”- Indian co-operative society
scenario.

About 76.4% of total holding in India are below size of 2 hectares and 28.8% of total operated
area is engaged into these maginal and small holdings. Average area operated in the case of
marginal form is only 0.4 haectares and in case of small farm, it is about 1.4 hectares only.

Advantages of Co-operative farming include:- economies of scale, marketable surplus, release of

workers, administrative convenience, credit worthiness, social arguments. Irrespective of all
these advantages, there are certain criticisms. These are :- inequality, improper workstyle, poor
support, lack of professional skills, unemployment, better alternative, loss on independence.

Legal Aspects of Co-operative farming :-

Co-operative Societies Act :-

First enactment marking the beginning of Co-operative movement was done in 1904. In 1912, it
was amended allowing other types, that formed by rural thibt and credit banks. Act VII of 1925
again broadened the scope of this act.