Fpo Establishment
Fpo Establishment
Historical perspective
New roles for extension
Farmer organizations
Steps in establishing farmer organizations
How to strengthen existing FOs
Policy issues in establishing and strengthening farmer organizations
References
Historical perspective
Historically, extension has mainly involved technology transfer, with the village extension worker
(VEW) transferring knowledge from research stations to farmers by using individual, group, and
mass media methods. More recently, extension has been asked to play a "technology
development role" by linking research with community group needs and helping to facilitate
appropriate technology development. It is in the historical context that many government
agencies developed national policies for rural development and designed a policy framework to
help rural people become organized so that the delivery of services could be channelled through
the various types of farmer organizations or groups. Well-meaning policies also provided
blueprint structures for farmer organizations (FO) in the form of cooperatives and commodity
organizations in order to provide various input, marketing, and educational services to the
farmers. Targets for forming groups and farmer organizations were given to VEWs without
training them properly in the theory and principles of community organization. VEWs did not
have many skills and not much experience in the process of establishing these organizations.
Some countries such as Thailand had VEWs for establishing cooperatives in rural areas, while
other countries like Malaysia and Indonesia developed "nucleus estates" for small rubber
producers where smallholders bring their rubber to process it. India has introduced dairy
cooperatives with some success.
However, because VEWs in many countries lack knowledge, skill and blueprint policies, and
high targets, they resorted to shortcut methods to establish farmer organizations and groups.
Many VEWs presented government policies in an oversimplified way to rural communities,
suggesting that unless they are organized into cooperatives or associations or groups, they will
not get government subsidies or access to credit and technical services. As a result, several
FOs were established overnight on paper. Many FOs remained active during the period that
government subsidies were distributed, but did not actively create cooperatives or partnerships
and mobilize local resources to help achieve agricultural development. Mostly the elite of rural
communities captured all of the services and resources, while the poor and women were left out
or received little benefit. Very few attempts were made to develop the management capacities
of FO leaders, their members, and VEWs. Community organization and facilitation skills were
not part of staff training programmes.
The traditional approaches to organizing farmers and forming cooperatives need to be revised
to meet the following development challenges of the twenty-first century:
Empowerment Role
The empowerment role can be a cornerstone of the new approach to extension. Extension
personnel need to develop a new philosophy where their role is to help farmers and rural
communities organize themselves and take charge (empowerment) of their growth and
development. Telling adults what to do provokes reaction, but showing them triggers the
imagination, involving them gives understanding, and empowering them leads to commitment
and action (Chamala, 1990).
The term empower means to enable, to allow, or to permit and can be viewed as both self-
initiated and initiated by others. For VEWs, empowering is an act of helping communities to
build, develop, and increase their power through cooperation, sharing, and working together.
The power in empowerment comes from releasing the latent energy hidden in the community
and building collective actions for the common good, rather than from merely redistributing
power from the haves to the have-nots. FOs can help harness this synergetic power for its
members' survival, growth, and development. Empowered FOs can act as convergent points or
platforms for solving local problems and mobilizing human and financial resources for
sustainable development (also see Manalili, 1990).
Community-Organizing Role
Village extension workers must learn the principles of community-organizing and group
management skills (Chamala & Mortiss, 1990) in order to help the community, especially the
poor or weaker sections, to organize itself for development. Understanding the structures, by-
laws, rules, and roles will help leaders to plan, implement, and monitor their programmes and to
perform this new role effectively. Skills in conflict resolution, negotiation, and persuasive
communication help VEWs to develop FO leaders and members.
Human Resource Development Role
The human resource development approach empowers people and gives new meaning to all
other roles. Development of technical capabilities must be combined with management
capability. Training modules are now available (Chamala & Mortiss, 1990; Mortiss & Chamala,
1991) to help develop individual and group management skills. The entire philosophy of human
capacity building is to encourage rural communities to understand their personal and group
styles of managing themselves and to improve their planning, implementation, and monitoring
skills.
Problem solving is an important role, but the role is changing from prescribing technical
solutions to empowering FOs to solve their own problems. This is achieved by helping them to
identify the problems and seek the right solutions by combining their indigenous knowledge with
improved knowledge and by using their resources properly. Similarly, there is a shift in the
education role from lectures, seminars, and training to learning by doing and encouraging
farmers and FOs to conduct experiments and undertake action-learning projects.
Farmer organizations
Types of Organizations
Farmer organizations can be grouped into two types: one is the community-based and
resource-orientated organization; the other is the commodity-based and market-orientated
organization.
There are many primary-level agricultural cooperatives in the developing world, but the majority
of them have been financially vulnerable and ineffective. Strategies have been developed to
strengthen these organizations (see the section on how to strengthen existing farmer
organizations). This group of organizations can generate income from the sale of inputs and
outputs. The income can then be put back into the organization by spending it on extension,
data generation, business planning, and administration. It is essential to have professional and
honest management with constant monitoring and periodic rounds of evaluation (Gupta,
1989). Commodity-Based, Market-Orientated Farmer Organizations. These organizations
specialize in a single commodity and opt for value-added products which have expanded
markets. They are designated as output-dominated organizations. Not specific to any single
community, they can obtain members from among the regional growers of that commodity who
are interested in investing some share capital to acquire the most recent processing technology
and professional manpower. These FOs are generally not small and have to operate in a
competitive environment. Research, input supply, extension, credit, collection of produce,
processing, and marketing are all integrated to maximize the returns on the investments of the
members who invested in the collective enterprise. Several successful cases are found in India,
such as Anand Milk and other dairy FOs.
The rate of success of these organizations is determined by their capacity to arrange for major
investments and a continuous flow of raw materials. This requires the competent and convincing
management of both enterprise-related and member-related aspects. The profits generated are
used to provide supplementary and supportive services at reduced cost to encourage members
to use them. To do this requires a high calibre of representative and enlightened leadership
from among the grower members. It is a challenging and demanding task to conceive, design,
build, and nurture this type of FO.
VEWs can consult and work with other governmental agencies and nongovernmental
organizations. However, each farmer organization will need to define its own BASE (basic
activity sustaining the enterprise). In India, or for that matter in many developing countries, there
is tremendous potential for expansion of commodity-based FOs. One rule of thumb suggests
that any commodity which accounts for more than 50 percent of the costs of the raw material
can be considered for value-added processing by a farmer organization (V. R. Gaikwad,
personal communication, 1994).
The degree of the farmer's dependence on the outputs of the organized activity.
The extent to which the outputs will be available only as a result of collective action.
The extent to which the rewards associated with the collective action will be distributed
equitably.
The extent to which the rewards are commensurate with the costs associated with continued
participation (Shingi & Bluhm, 1987).
The role of extension will vary with the role of the organization, the sectors in which the
organization operates, the services offered, and the organizational form used. In community-
based organizations, extension is used as a supplementary or supportive activity to realize the
objectives of the BASE function of the organization. In commodity-based organizations,
extension is integrated with all the other aspects of the organization to maximize the returns on
the investment of the collective enterprise. Extension is taken seriously by both the organization
and its members because both derive direct and measurable benefits from it.
The following issues need to be considered when developing the extension role, especially for
farmer organizations which are set up to specialize in the extension function:
Is there an identifiable need for extension in specific commodities in the area covered by the
FO?
Would the FO be able to generate enough revenue from the extension activity alone (with
farmers willing to pay for these services) to meet the FOs expenses and to provide satisfactory
rewards to its members for their monetary and nonmonetary contributions? It will be important to
anticipate the high potential for unresolved conflict over the issues of equity and charges for
extension services.
How sustainable will the extension activity be over time, and therefore how sustainable will the
organization be? It is possible for advice to be converted to freely transmittable knowledge
which can be transferred to anyone without payment. The cost of the extension advice limits
access to this knowledge. Therefore, the revenue earned from the extension activity could
decline, especially with a client group which has a low resource base and is primarily concerned
with a subsistence economy.
Can the advice given be actually put into practice and produce tangible benefits to the FO
members? The FO would need to control or arrange for the supply of necessary inputs to
ensure this; otherwise, the extension organization will fail, as has happened in the past in many
developing countries. This means that the extension function needs to be integrated backwards
with research recommendations and forward with the supply of inputs.
The organization will need to provide specific information in addition to the general information
available from research centres. To do this and to survive, the organization will need a research
linkage with government and university research institutions. It is beneficial if the FO can employ
qualified and committed scientists who have active contacts in research organizations or who
can act as consultants to groups of members. This would increase the cost of extension advice
to members if the FO is supposed to be financially self-supporting.
It is necessary to appreciate that "extension markets" are governed by factors such as
agroclimatic variations, infrastructure development, and the strength of market forces. FOs
operating in desert regions, single-crop rainfed areas, and predominantly irrigated areas will
have different occupational and extension needs; therefore, variable response patterns to
extension have to be anticipated (Gupta, 1981, 1985). Similarly, FOs operating in food-deficit
and food-surplus stages will have different roles, expectations, and returns.
Some of the techniques that can help to understand the community are using key informant
techniques, participating in the community meeting and tea stalls, and walking around.
Understanding the ownership of community resources and people's attitude, knowledge, and
skills in the development of agricultural production will help the VEW learn about the community.
The VEW can also understand the situation in more depth by collecting both qualitative and
quantitative information on the levels of income and productivity, costs of cultivation, post-
harvest losses, output utilization, and the likelihood of making striking improvements to each of
these factors.
Step 1 is crucial and cannot be done in a hurry. VEWs must spend some time (up to a month or
so) to get the feel of the village community structure, politics, groups, and past experience in
FOs.
The usual tendency is for the VEWs to talk to formal leaders and commercial sections of the
community. By using the sociometry method (see Box 1 for details on the methodology), they
can identify potential leaders. However, it is also important to be sensitive to the leadership
structures operating in that culture and to the knowledge and skills needed to be a successful
leader of a farmer organization.
In some cultures, it is wise to search for and contact middle-aged leaders of the area who are
not too young or too old. Preferably, they should come from better-off families, have social
status and respect, and be from farming households. Case studies of leaders who have
established farmer organizations show that these leaders initially made considerable sacrifices,
experienced financial losses, and had to be supported by their families. These leaders also had
to struggle and negotiate with bankers, bureaucrats, politicians, critics, and others including their
own farmer members (Seetharaman & Shingi, 1992). This family background and grooming
helps these leaders to deal with situations which they will have to face with confidence and
without being cowed. Leadership of an FO is not a job for a sincere but ordinary farmer.
Box 1. Sociometry.
1. I am new to the village. Could you tell me three names of leaders of the village? (These are positional
leaders who are currently holding leadership positions.) Write down their names or remember them and
write them down later.
Positional Leaders
....................
....................
....................
2. Name three leaders whose opinions or ideas on agriculture have influence on their friends and
community leaders. (Make sure to get these names from each section of the society: the larger, medium,
and small farmers because opinion leaders exist in each socioeconomic strata of the community.)
Opinion Leaders
Higher ......................
Medium ....................
Lower or poorer ..........
Step 3. Talking to the Identified Leaders and Seeking Cooperation from Other Agencies
VEWs might talk to these leaders on general agricultural development and get ideas and
information on FOs in the village. They might also seek cooperation from government agencies
and especially from NGOs (if there are any in the area) to help establish FOs and support them
in achieving success.
Does the community have a farmer organization? If not, is there a need for such an
organization? If the community has an FO, what is its structure and history of performance. How
could the FO play a role in village or community development? VEWs can canvass for ideas
from the community and add their own ideas on the need for and the role of FOs in the entire
process of broad-based agricultural development. They can explain how FOs in other
communities helped them in development. It is important to provide facts and figures to
convince potential leaders of the possibilities and approaches for increasing the income of a
sizeable number of farmers and for contributing to the economic development of the region.
Good FO leaders might also receive political advantages through satisfied farmers and people
living in the region. The leaders' support should be secured and key people encouraged to
consult among themselves about the pros and cons of forming FOs in the community.
The core group leaders' main goal is to understand the appropriate organizational structure, composition,
and working rules for the efficient management of their farmer organization.
Stage 1. Leaders should secure the relevant guidelines of other FOs and study them carefully. An
FO can be initiated by the government or by farmers and the community. If it is government initiated, the
leaders should obtain copies of guidelines and rules. If it is community initiated, they should talk to other
FOs and get their guidelines and constitution. The core group should study them carefully and discuss
how they can fit into their community needs.
Stage 2. Leaders should then draw up a tentative organizational structure and working rules for
their farmer organization. They should consider various models or types of organizations that serve
their special needs for agricultural development and discuss them with other experienced leaders from
that village or neighbouring villages. The structure should serve the functions. Are subgroups needed to
achieve each task?
VEWs can help enthusiastic local leaders to call for community meetings. Sometimes more than
one meeting may be needed to discuss the need for and the role of FOs in agricultural
development. FO leaders from neighbouring villages can be invited to speak at these meetings.
Farmer-to-farmer information exchange helps them. Sometimes smaller meetings can be held
for low-resource (small and marginal) farmers and minority groups. They may prefer having a
separate FO to serve their specific needs. There is no harm in having more than one FO in a
village.
It is important that producers from all sectors in the village participate in these meetings
because the success of an enterprise-based FO depends on the volume of raw material
procured from member producers. Every small or big producer contributes to this volume. The
volume itself is more important than the socioeconomic status of the supplier.
Prospective members need to be convinced that everyone benefits in proportion to his or her
contributions, not just the big farmers, as is widely perceived.
From the community meetings, core group leaders are elected or nominated to design the FO
with further community consultation. In some cultures, however, this approach may lead to the
appointment of leaders who are unable to cope with the complexities of a farmer organization,
as mentioned in step 2. If leaders are elected or nominated, VEWs should consider the issues
raised in step 2 when assessing each candidate for election or nomination.
In situations where it is more appropriate to appoint a leader, the search for a suitable person is
critical and requires time and patience. It is also critical that the selected leader be involved in
the search for a potential agro-based enterprise to act as a BASE (basic activity sustaining the
enterprise) for economic development. This process requires time, patience, and interactive and
intellectual inputs. The VEW can help the appointed FO leader in this process.
The VEW can help the core group of leaders in developing an organizational structure for their
farmer organization. In the past, the "blueprint" approach was taken without understanding the
function that the FOs structure plays in its performance. Group discussions help to highlight the
need for careful planning. See Box 2 for details.
The structure should serve the organization's functions and goals. Understanding various types
of FOs is useful. Should they be commodity-based organizations, cooperatives, partnerships,
groups, or syndicates? Should they be multipurpose? Should there be one FO for the entire
village or several to cater to the needs of special-interest groups (low-resource farmers, women,
craftsmen, small businesses, and the like)? Should they have subgroups and an advisory
committee? It is the farmers' organization, so they must go through the process explained in
Box 2 and design it carefully by describing roles, responsibilities, rewards, and punishments for
the people who perform tasks in the FO. At this stage, the VEW should, as far as possible, play
a passive role because the leaders are the ones who are building the FO. NGOs also may
share their experience and help leaders to develop an organizational structure.
Several less exacting chores also need to be taken care of at this stage. These include locating
premises and negotiating for land, money, technology, personnel, construction, and
infrastructure services such as power lines and telephones (if available).
Figure 1. Detailed six-stage PAM planning cycle. Source: Chamala (1995a).
Step 7. Developing the FO's Management through Education and Action Learning
An essential part of community empowerment is to help educate the leaders and members in
management principles covering planning, implementing, and monitoring their projects and
programmes. The following empowerment methods may be useful:
Leading. Help the leaders to lead and to learn from their actions by reflection as a team.
Mentoring and supporting. Help the members initially by mentoring or supporting them in their
planning and implementation stages.
Providing. Obtain the services of other stake holders, FOs, and VEWs in providing various
services to nurture the FO in the early stages of development.
Structuring. Help the FO to structure its meetings and various participative planning activities
and to learn from their experience through reflection.
Actualizing. Help them to reflect on the process of managing their FO. Learning by doing can
help them in self-actualization.(For more details on empowerment, see Vogt and Murrell (1990).
In this step, FOs examine their action plans, and task groups are set up to mobilize human and
financial resources. Understanding the participative action management (PAM) planning
process is useful (for details see Chamala, 1995a). A detailed six-stage PAM planning cycle
(Figure 1) can help FO leaders in designing an inclusive and participative planning process.
This is the stage to start considering the timing, scale, and content of the extension and
research input of the FO.
In this step, the village extension worker can help the FO leaders implement the projects they
have chosen.
Develop monitoring processes for reflecting on events and activities regularly, either formally
or informally.
Ask committee members to meet to discuss actions periodically and report to general
members regularly to keep them informed and involved.
Usually evaluation is done annually to meet formal requirements. But VEWs can encourage
FOs to reflect on their activities more frequently so that they learn and improve their
management skills. They need to watch for people who want to take over the FOs for their self-
interest. It is important to take action against any negative influences. These monitoring or
reflection processes help strengthen FOs and avoid self-defeating problems. Learning
organizations are created through collective reflection and openness on financial and the other
managerial matters (Senge, 1990).
The success of the farmer organization can be evaluated by measuring the increase in the
members' productivity, the increase in their net income, and the net reduction in the cost of
cultivation due to bulk purchases of inputs by the organization. It is essential to conduct
monitoring and periodic evaluations.
By reviewing the literature on groups and management, Chamala (1995b) identified twenty-six
factors that factors, (2) service agency factors, (3) community factors, and (4) other external
factors.
VEWs need to understand the factors that influence group or organization effectiveness or
success (see details in Box 3). Many FOs have failed because of corruption, mismanagement,
conflict, and lack of clear goals. It is important that VEWs understand these forces that influence
their functioning. Several steps are suggested below to revive or revitalize existing FOs.
Group (FO) Internal Factors. At least ten factors are identified under this category:
1. Group composition
2. Group structure and size
3. Group atmosphere
4. Cohesion
5. Group standards and norms
6. Leadership styles
7. Balance between group maintenance needs, individual needs, and task needs
8. Level "group think" characteristics in the group
9. Development phase of the group
10. Group culture: empowering or controlling or a balance
Service Agency Factors. Government and nongovernment agencies can influence the effectiveness:
11. Technical capabilities of extension staff
14. Types of planning methods used: directive or participative, top-down or bottom-up, or balance of
methods to maximize participation
15. Means or ends distinction: some groups are formed as means for development, while others are
formed to harvest government subsidies. A group could get help, but it needs to mobilize its resources
too.
Community Factors. Groups and organizations are part of the community in which they exist. Hence the
community influences a group's success.
This step is similar to step 1 for establishing farmer organizations. The key factor here is for the
VEW to gain the community's trust in order to help them develop.
Getting the multiple perspectives of identified leaders in the community informally is the next
step. Putting pieces of the jigsaw puzzle together to understand why FOs are inactive requires
diplomatic and detecting skills. The historical perspective of the FOs and various local factors
that influenced their inaction must be obtained. The factors influencing community group
effectiveness (Box 3) can be used as a guideline by selecting the relevant factors and ignoring
the irrelevant ones.
Again, VEWs can talk to key leaders and seek their ideas on how to strengthen or revitalize the
existing FOs or how to create new ones. It is the community's organization for their
development, so the leaders' opinions and support should be obtained.
The VEW can help the leaders in setting up a community meeting to strengthen FOs or to form
a new one.
The VEW can unobtrusively provide the format and make suggestions on how to conduct
meetings and how to strengthen FOs.
Leaders should be careful not to let the meetings and the community mood for "head hunting" or
"apportioning the blame for the FO's inefficiency" to take control.
Will strong farmer organizations create more demand for services, and if so, how can this issue
be resolved? Some policy makers believe that strong farmer organizations could create more
demand on research and extension. This is partly true, but if the overall policy framework
emphasizes empowerment, self-help, or user-pay systems, then more local resources could be
mobilized and help increase the correct way of using current natural resources on a sustainable
basis. Several low-resource farmer groups working with other stakeholders like banks,
agribusiness, NGOs, private consultants, and religious and philanthropic agencies will bring
more resources to the development process. Retired professional teachers, nurses, and
agricultural scientists could be encouraged to work as volunteers with FOs. In many developed
countries, volunteers are a major force in providing services to the community.
Will organized low-resource farmers compete for extension services with the existing
commercial farm sector, and if so, how can this issue be resolved? In principle, farmer
organizations with full empowerment reduce the pressure on "routine extension" activities,
which take up a lot of the VEW's time. For example, "Landcare" groups in Australia and some
successful FOs in Malaysia, the Philippine, Thailand, India, and Africa are helping other farmer
groups or farmer organizations to be effective not for egalitarian or welfare reasons, but
because they see that the commercial sector is dependent on low-resource farmers or upland
farmers in solving their salting, erosion, water quality, and pest and weed management
problems. Ecologically, the commercial sector is dependent on resource-poor or other minority
tribes and groups for their survival. Just as in farmer-to-farmer extension methods, VEWs
should help link the commercial sector with the low-resource farm sector so that win-win
projects can be developed.
Similarly, the commercial sector needs peace and prosperity to avoid social unrest and to stop
thefts and other problems. VEWs can play a positive role in developing a common or shared
vision for sustainable development. Again, several techniques like future research, problem
census, and SWOT analysis will help develop a shared vision for the commercial sector as well
as the low-resource farming sector or minority groups. Collective action is crucial for survival
and sustainable development.
Community organization is essential for rural development. One should not take a blueprint
approach, but rather a learning-process approach within an action-learning framework (Korten,
198).
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