Different criterion for defining small holder farmers are justified from this slide. It is recommended defining smallholders as much as possible in line with national laws and other recognized standards. Without such references, the focus should be on the technical, managerial and financial capacity of a smallholder. Smallholders, whose output supports a population of roughly 2.2 billion people, manage about 85% of the world’s farms. Agriculture is a source of livelihood for an estimated 86% of rural people worldwide, comprising 2.5 billion people and provides jobs for 1.3 billion smallholders and landless workers (Lundy et al)

1. Defining Smallholder Farmers
Kiran Timisina
B.Sc.Ag,AFU
President, TSAN-AFU

2. Questions:
• If your members produce highly labour intensive products
(cane sugar, prepared and preserved fruit & vegetables, fresh
fruit, fresh vegetables, tea),When are they small producers in
the following criterions:
• They hire less than a maximum number of permanent workers
permanent workers as defined by the certification body.
body.
• The land they cultivate is equal to or below the average of the
average of the region, as defined by the certification body.
body.
• They spend most of their working time doing agricultural work
agricultural work on their farm.
• Most of their income comes from their farm.”

3. Defining
• “You are a small producer organization and at least half of
your members must be small producers. If your members
produce less labour intensive products (cocoa, coffee, herbs
and herbal teas and spices, honey, nuts, oilseeds, cereals, seed
cotton), they are small producers if the following criteria are
fulfilled:
• Farm work is mostly done by members and their
families.
• They do not hire workers all year round.

4. Criteria
IFOAM
• “A farmer in a group certification scheme is considered a smallholder
when her/his holding meets at least 6 of the 8 criteria from the matrix.”

5. Role
• Smallholders, whose output supports a population of roughly 2.2 billion
people, manage about 85% of the world’s farms. Agriculture is a source of
livelihood for an estimated 86% of rural people worldwide, comprising 2.5
billion people and provides jobs for 1.3 billion smallholders and landless
workers (Lundy et al)

6. List of indicators to define
smallholders

7. Contd….

8. 1. Market orientation
• Distinction is made between those farmers primarily
producing for their own subsistence, farmers producing
occasionally or regularly for markets (in addition to
subsistence production) and farmers producing primarily for
markets
• While smallholders in general may be subsistence or
commercial oriented, in the context of international supply
chains smallholders have at least some (and most likely
regular) surplus to sell

9. Market orientation…

10. 2. Landholding size
• most frequently used variables to define
smallholders
• on the national average land size, or on fiscal
properties that are fixed by law or decree by
the respective country
• Multilateral organizations such as World Bank,
10 CGAP or the AfDB generally define
smallholders as farmers with 2 ha of land

11. Landholding size
• National governments sometimes define a smallholder in their laws and
regulations
• In Nepal, different categories of farmers are defined. Farmers with <2.5 ha
are described as landless or marginal. Smallholders (small farmers) are
defined as occupying <5 ha(UNDP )
• When analyzing the existing definitions used by multilateral, national,
certification and other organizations, an important observation is the
existence of a large variability in landholding sizes that determine whether
a farmer is a smallholder or not. Size differences vary between 2 ha and
750 ha and can be caused by crop types, demographics, climatic
conditions, etc

12. 3. Labor input
• Labor input is also a frequently used indicator to
define smallholders
• It may refer to the origin, type and quantity of
labor input on the farm
• Some also refer to the distance between the
farmer’s residence and the farm
• This may be considered as an indicator of
whether family labor input is indeed realistically
expected to be the main source of input at the
farm

13. Labor input
• “family households [is the] major corporate
social unit for mobilizing agricultural labor,
managing productive resources, and
organizing consumption”
• predominantly utiliz(ing) labor of their own
family within the economic activities of their
establishment or enterprise
• distance between farmer residence and the
farm holding

14. Labor input
• Small producers would not depend on hired
labor, however there was an exception for the
busiest days of the harvest season, in which
staff could be hired for a limited time span
• Labor input is a frequently used variable to
define smallholders in the sense that
smallholder farming has predominantly family
based labor input

15. 4. Farm management responsibility
• Smallholders may be providing most labor
input on their farm, but not necessarily have
much influence on how to farm
• Farm management can be executed by direct
family producers or other family members
• family is the centre of planning, decision
making and implementation, [nevertheless]
operating within a network at the community
level(AfDB)

16. Farm management responsibility
• Farm management responsibility seems to be
a relevant indicator
• It addresses responsibility of the farmer in
relation to the farm
• If smallholders are constrained in their
freedom of decision, this may influence the
extent to which they can be held responsible
to comply with certification requirements

17. 5. Income
• Income can be considered a relevant or even
determining input factor
• Most definitions that do refer to income
indicate that smallholders draw the majority
of their household income from on-farm
activities
• at least 50% of the household income should
be derived from on-farm activities

18. Income
• In Nepal, the definition of a commercial farmer
prescribes that the farmer achieves a turnover
that is large enough as to oblige them to be
registered for Value Added Tax
• Apparently, it is difficult to prescribe a nominal
income level to a smallholder
• A sophisticated way to include income in a
certification scheme could be to make the
production value relative to the certification costs
and define a limit which distinguishes
smallholders from non smallholders

19. 6. Farming system
• Smallholders are often assumed to have diversified
farming systems, with low inputs, a low level of
technology and consequent low productivity
• The farming system can be a valuable element for
defining a smallholder if it concerns a crop where the
farming system is indeed the determining indicator
between the less professional and more professional
farmers
• An example could be the difference between the
mono-culture and diversified production systems in
coffee

20. 7. Capacity
• Smallholders are often considered to have
limited capacities on various issues compared
to more professional farmers
• This criterion appears to be of fundamental
value
• Capacities that determine the feasibility of
complying with a standard include literacy,
farm management, administration and
marketing

21. Capacity
• “Emerging smallholders are generally defined
as disposing of a higher level of technical
knowledge and better receptivity to improved
technology, relative to traditional smallholders
(FAO,2011)
• Capacity is a fundamental indicator to
distinguish a smallholder from larger farmers

22. 8. Legal aspects
• Some official government regulation refers to
land tenure in their definition of a smallholder
• To qualify as a family farmer and be eligible for
the related benefits, the farmer should be the
lawful occupier of the land
• Smallholders may also be disqualified if they
are registered as private enterprises

23. 9. Level of organization
• Some certification systems do not define
smallholders in terms of farm size, income or
capacity. The only condition they pose is that
a farmer should be member of a group system
• Withdrawal of defining criteria can imply the
inclusion of larger farms in groups

24. Level of organization
- Producer-based groups o Cooperatives and producer associations
Informal and registered producer groups
Communal land groups
- Supply chain-based groups o Contract farming or outgrower schemes
Trader networks
Sharecropping and tenant farming arrangements
Business ventures with mixed ownership
- Service provider networks
- Public, private or non-profit driven

25. Conclusion
• It is recommended defining smallholders as
much as possible in line with national laws
and other recognized standards. Without such
references, the focus should be on the
technical, managerial and financial capacity of
a smallholder

26. Lastly
Perhaps the simplest
way to deal with
smallholders is by not
defining them

27. Lastly
Thank you!
Any Questions???