Forming a Farmers Club

Here are some frequently asked questions about Farmers’ Clubs.

What is a Farmers’ club?
A Farmers’ Club is an informal group of practicing farmers (or even farmers wanting to re-start agriculture) who get together and collaborate for the purpose of pursuing agriculture-related objectives.
Usually, one Farmers Club is encouraged per village.
What is NABARD’s Farmers Club program for?
NABARD has a Farmers Club program under which farmers’ clubs are eligible for financial assistance in terms of loans and grants to help meet the objectives of the club.

Who can form a Farmers’ Club?
Anyone who is involved in agricultural/horticultural activities.
Even if you have discontinued farming, but you want to restart you can form a Club
It does not matter whether you own land or are a tenant or a landless farmer, you can still form or be a part of a Farmers Club

How to go about forming one?
It’s actually quite simple. To begin with you need to get a few like-minded farmers who are willing to take a lead on the Club’s activities together (others will follow when they see the benefits from being in a Club. Don’t worry, even if you’re just five in number, go ahead and form the club anyway!)

Steps in forming a club

1. Find a few farmers who will be interested in forming the Club.
2. Contact the Branch manager of your local bank (nationalised or  private bank) and speak to him about your wanting to start a Club. Invite him to attend your first meeting. You need to be associated with a bank as the financial assistance made available by NABARD through the scheme, will be routed through the bank you’re linked to.
3. At your first meeting, pass a resolution saying that you intend on forming a Farmers Club, providing the names of the members, your village name and the bank with which you club will eventually open an account. You will also need to provide names of a Chief Coordinator and an Associate coordinator for your club.
4. NABARD also requires you to provide basic information about your village. Use this form to gather up this information.
5. Once you have this information, submit it to your chosen bank. In a covering letter requesting the branch manager forward your application to NABARD. Include the following with your covering letter:
   Minutes from your first meeting
   The Resolution passed by your Club
   List of members
   Village details
6. The Branch manager will forward this for final approval to NABARD.
7. After NABARD’s approval, the Club can open an account in its name at your chosen bank.
8. NABARD then encourages the Club to organise an official Inauguration Ceremony for the club where interesting and relevant speakers may be invited to address, motivate and provide ideas to the club. The Club can also take this opportunity to invite speakers from relevant government departments like the Dpt. Of Agriculture, ICAR/KVK, Dpt of Fishiries, Animal Husbandry etc…. They can tell the Club about various government schemes that are available to farmers etc…
9. Thereafter, the club needs to meet once a month (minimum), plan for the kinds of activities it wants to undertake and make steady progress towards achieving their stated objectives.

What paper-work needs to be done to form a Club?
There are some very basic requirements in terms of paper-work.

1. Minutes from your first meeting
2. The Resolution you passed stating that your group of farmers wants to form a Farmers Club and avail of the benefits under the Farmers Club Scheme.
3. List of members (you can always add to the membership list, this is in now way a final list).
4. Details about your village as required by this form.
5. Names of Chief Coordinator and Associate Coordinator (they need to be members as well)

What are the financial benefits of forming a Club?

1. Avail of up to Rs. 10,000 a year (for 3 years) in administrative costs for Club’s activities as below:
   Inauguration assistance of Rs. 5,000
   Annual maintenance/administrative support up to Rs. 3,000 for 3 years
   Rs. 1,250 per workshop for four “Meet-the-Experts” Workshops spread over a period of 3 years.
2. Avail of credit from banks for various entrepreneurial activities undertaken by the club
3. If the Club is registered under the Societies Act, it is eligible for various group-subsidies from the Dpt. Of Agriculture etc…