FEB/09/2015

                    In below article , I’ve shared my thoughts about running Indian Farms similar to Silicon Valley Tech Startups; in order to help improve quality of lives of Indian farmers and their families.

Problems:

This article discusses how current bad practices , policies from government and how to follow good practices from a Tech Startup to bring in easily achievable revolutionary changes 

1. P0 Issue to tack care – Farmer’s Suicide In India


Other farmers’ friendly (?) policies from Congress government since last 60+ years and other regional parties who are learning “divide and rule” policies , short term gain policies from oldest and stupidest party in India as below 


1. Free Electricity to all farmers


2. Loan Weaver Scheme – take loan and don’t bother to give back


3. No scientific farming – Man made recurring disaster like recurring Maharashtra State Draughts


4. Subsidy on Uria , spoiling earth / farm land permanently


5. Too much usage of chemicals for higher yields in short time


6. Too much dependancy on nature for rain or convenient weather for particular crop

Solutions Proposed:

Case Study 1:

Farmer owns land and take scientific , systematic approach towards farming with the help of Agriculture VC


Goals:  


1.  To make sure each of the farmers gets maximum yield from his/her farms and get prosperous

2.  With this I want farmers avoid going to banks , persons and taking high interest loan and get trapped in debt burden forever.

Steps:


1. VC approaches farmers or vice versa

2. Educate about possibilities wrt farming , crops etc

3. Discuss about possibilities wrt changes needed

4. Invest money into farm and owns stack in farm

5. Now onwards it’s continuous process to co-ordinate between VC and farmer to make sure goal is reached at the end of each crop cycle.


Challenges:


1. What happens in case crop failures for longer duration ?

2. What happens if farmers looses all his land to VC ?  There should / can be clause that he can work harder in coming years and get back his stack

3. This is more human approach than farmer taking loan from individuals / bank and get into debt loop , from which it’s almost impossible to come out

Case Study 2:

VC owns land and responsible for all the decisions takes related to farming


Goals:


1. Bringing lots of uncultivated land across India into cultivation

2. Generate more employment in small districts , town and improve quality of life in that region


Steps:


1. Recruits farmers / persons interested in farming for shorter time as well / students / interns / scientists etc from Agriculture universities

2. Give regular salary ( again Fixed + Variable component ). Similar to some of the India s/w companies who share quarterly profits with employees based on company performance.

3. Also gives stocks to make sure people stick with farm for longer duration

4. Each year farmer will take more and more stack

5. Down the line farm will completely belongs to farmer / farmers


Challenges(?):


1.  This approach will create more employment and healthy competition between private farm owners and VC owned farms

2. With hard work farmer will own his own farm land

Overall Benefits of above 2 cases : 

1. VC ( Bank + Agriculture University ) owns some part of farm


2. Famers are constantly guided about good practices throughout the year


3. Once crop/s is sold , profit is shared


4. Proper end crop distribution , storage can be achieved . This will avoid wastage and both crop growers and end customers will be benefited


5. All the big chain of middle men can be eliminated


6. Organic farming can be reintroduced


7. Other farmers can work on some one else’s farm on particular crop and take % of share


8. In case of loss , farmer can file for bankruptcy as it was not his mistake


9. Famers don’t have to worry about paying back debt , as s/he is constantly monitored that invested money is utilised properly and farmer is not misusing funds for her/his personal benefits


10. In case of loss , he can get next round of funding for next year’s crop


11. VC = ( Banks ( public , private ) or  individual investors  ) and Government ( Central and State )

Links For Further Reading


http://www.techrepublic.com/article/funding-your-startup-crowdfunding-vs-angel-investment-vs-vc/


http://en.wikipedia.org/wiki/Venture_capital


http://www.walkersands.com/US-Venture-Capital-Firms-For-Tech-Startups


http://www.techrepublic.com/article/the-dark-side-of-venture-capital-five-things-startups-need-to-know/