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www.ica.coop 
Family Farming in Asia Sangmin Han 
Senior Manager 
NACF EU Office 
21 October 2014 
icao.coop
Family farming includes all family-based agricultural activities and is a means of 
organizing agricultural, forestry, fisheries, pastoral and aquaculture production 
which is managed and operated by a family and predominantly reliant on family 
labor, including both women’s and men’s. 
More than 570 million farms in the world, of which 88% (i.e. 500 million) are 
owned by families. 
www.ica.coop 
Family Farming 
www.icao.coop 
Responsible for at least 56% of agricultural production 
Family farmers work on a significant portion of the world’s farming land, 
regional averages are: 
- 85% in Asia 
- 62% in Africa, 83% in North & Central America, 18% in South America 
and 68% in Europe
www.ica.coop 
Family Farming in Asia : small-scale 
www.icao.coop
Rapid Globalization of the food sector and threats from large-scale 
commercial farming and industrial production 
Environmental changes brought about by climate change, floods, 
diseases and pests 
Lack of support in accessing markets, assets, seeds and technology 
www.ica.coop 
Major Challenges in Asia 
Farmers drainage with rapid industrialization and aging farmers 
www.icao.coop
Reform the legal frameworks and policies on access to land, gender equity 
and youth in agriculture 
Develop country-specific data on family farming, including roles and 
structures of producer organizations 
Institutionalize national committees with meaningful multi-stakeholder 
participation, especially by farmers organizations, co-operatives, consumers, 
civil society and private sector 
Establish enabling conditions for producer organizations and co-operatives 
facilitating their access to policy-making processes, programmes and 
incentives that allow them to thrive 
www.ica.coop 
Recommendation by IYFF Regional Dialogue 
www.icao.coop 
Develop a strong campaign to promote the IYFF
Women play a key role in family farms and hence programmes to address 
gender inequity in agriculture will pay dividends in terms or improved food 
security 
Providing access to quality inputs, technology and services like extension, 
credit and marketing will contribute to improving productivity of family farms 
Value chain development and promotion of entrepreneurship will boost 
economic viability of family farms 
Promotion of global alliances for strengthening the potential of family farms to 
address the zero hunger challenge 
Providing family farmers with adequate financial and scientific support to 
ensure food security should be the bottom line of all food and agricultural 
policies of developing countires 
www.ica.coop 
Recommendation by IYFF Regional Consultation 
www.icao.coop
FAO-ICAO Joint Conference of Family Farming in Bali 
www.www.icao.ica.coop 
coop
In India, family farming is refereed to small holder farming i.e. farming on 
the farms having size of less than 2 ha and dependent mainly on family 
members for carrying out most of the farming activities 
Out of 138 million ha land holdings available in India, about 86% (i.e. 117 
million ha) is owned and maintained by small holders 
Contribute about 40 % of the total food production and 78% of the total 
agricultural production 
www.ica.coop 
Family Farming in India 
www.icao.coop
www.ica.coop 
Family Farming in India (continue … ) 
www.icao.coop 
Challenges for family farming 
Land and tenure security 
- approx. 15 million farm families have no land 
- tenure of leased land for farming is not fixed 
- scope for land tenure security, land tenure reform 
Fragmented Land Holdings 
- size of land holding coming down due to bequeathing 
- reduction in cultivable land 
- wastage and inefficient use of costly farm inputs 
Water Shortages 
- dependence on rainfall & ground water 
- unsustainable extraction of surface and ground water 
- no access to irrigation water
www.ica.coop 
Family Farming in India (continue … ) 
www.icao.coop 
Challenges for family farming 
Access to qualified farm inputs 
- could not afford to buy high cost inputs like seed, fertilizers … 
Low farm mechanization 
- farm equipment and machinery not viable for small farms 
Credit crunch & limited access to financial resources 
- difficulty in accessing credit services 
- dependence on private money lenders 
Impacts of climate change 
- increased temperature, water salinity, pest and disease attack 
- shift in weather
www.ica.coop 
Family Farming in India (continue … ) 
www.icao.coop 
Challenges for family farming 
Globalization challenges 
- cannot take advantage of higher food prices being the small scale of operation 
- cannot compete with the larger business firms 
Limited access to markets 
- poor access and control over market and market information 
- weak bargaining power 
Lack of recognition of women in farming 
- contribution of women in farming undercounted 
- agricultural policies and programmes not sensitive to their needs 
Youths moving away from farming 
- distracted by non-remunerative and non-profitable of farming 
- interested employable in urban area
www.ica.coop 
Family Farming in India (continue … ) 
www.icao.coop 
Co-operative Farming 
Due to globalization and entry of big retailers in India, contract farming is 
becoming successful. Practiced by many private companies 
However, benefit not reaching the small farmers, since small farms are not 
preferred for contract farming due to high transaction costs. 
Small farmers can get benefitted by organizing through co-operatives to do 
co-operative farming 
Co-operative Farming 
- farmers pool their land or collectively take land on lease 
- economies of scale in procuring farm input 
- better bargaining power, better price realization of the produce 
- can also integrate with contract farming by signing contract with private 
companies
www.ica.coop 
Family Farming in India (continue … ) 
www.icao.coop 
Indian Farmers Fertiliser Co-operative. Ltd (ICAO member) 
One of the prominent national level multi-state co-operative society of India 
Largest producer and marketer of fertilizers in India 
Have more than 39,000 member co-operative societies, out of which about 
36,000 are small holders 
IFFCO is playing a vital role in the development of small holder farming 
and improving the lives of farmers in following ways : 
- largely catering to the needs of fertilizers to small farmers 
- promotional programmes & extension services 
- save the soil campaign 
- information & communication technology 
- providing insurance facility 
- providing warehousing & collateral management services 
- providing access to commodity markets 
- social and cultural benefit
www.ica.coop 
Family Faring in China 
www.icao.coop 
Major Problems of Chinese Agriculture : 
Farmer Drain : Migrant Workers 
ex) 70% of registered farmers with age b/w 18 and 55 worked in the cities 
(Wenshang County of Shandong Province, a typical agricultural area) 
Aging 
ex) 60-90% of farming work is done by people over 60 
(Shanxi Province) 
Land Abandonment : 5~10 % land abandoned through out the year 
40~50% land abandoned seasonally 
(Jiangxi Province) 
Low scale Economy 
- 0.61 ha/household (Nationwide), 0.22 ha/household (Zhejiang province) 
Financial difficulties : lack of credit accessibility, high interest rate
Approach by All China Federation of Supply and Marketing Cooperatives: 
www.ica.coop 
Family Faring in China (continue …) 
www.icao.coop 
Land Trusteeship 
Total Trusteeship: give land to the cooperative and receive shared profit 
- wholesale trust : with the guidance and recommendation from the village 
council, a large number of farmers in a village entrust their land for a 
reasonable long term to the Supply and Marketing Cooperative (SMC). 
- pooling land : the fragmentary land are pooled together with industrialized 
farming, management, harvest, processing and marketing 
- share profits : The SMCs would bear the cost of land, and the profit from the 
land were shared proportionally among farmers and SMCs with some 
administration fee to the village council.
Approach by All China Federation of Supply and Marketing Cooperatives: 
www.ica.coop 
Family Faring in China (continue …) 
www.icao.coop 
Partial Trusteeship: 
- whole chain service : SMCs offer the whole range of paid service from the 
land plowing, sowing, fertilization, harvest, processing and marketing for 
farmers to choose voluntarily. 
- minimum service level : Farmers who would like to join in the trusteeship 
program, shall paid for a minimum level of service from the SMCs as decided 
by the SMCs 
- discounted price : Farmers in the trusteeship program received the service 
and fertilizers at discounted price from the SMCs, compared with the market 
price 
* Monitor of Trusteeship by Village Council
www.ica.coop 
Family Faring in China (continue …) 
www.icao.coop 
Common Principles of Trusteeship 
- voluntary participation 
- paid service 
- shared risk 
- shared profit 
- extended assistance 
Challenges of Trusteeship 
- concern about the long-term stability of trusteeship 
- farmers’ lack of risk sense and contract spirit 
- lack of fund to upgrade machinery and technology
 The total number of agricultural management entities in Japan is 1,680,000, of 
which 1,650,000 are family management entities, accounting for about 98%. 
 While farm households have been decreasing, corporation management entities 
have been increasing. This is one of structural changes oven time. However, in 
terms of agricultural population, the center of Japanese agriculture is still family 
farming. 
www.ica.coop 
Family Farming in Japan 
www.icao.coop 
Year 
Number of 
agricultural 
management 
entities 
(thousand entities) 
Family farmers Corporations 
2005 2,009 1,981 28 
2010 1,679 1,648 31 
Up down (%) -16.4 -16.8 10.4 
Percentage (%) 
2005 100 98.6 1.4 
2010 100 98.2 1.8
 In terms of agricultural output per management entity, corporation entities are generally larger in 
scale: They are only 1.8% in number, but produce about 30% of total agricultural output. 
 On the other hand, family management entities accounts for about 70% of the total agricultural 
www.ica.coop 
Family Faring in Japan (continue …) 
www.icao.coop 
output in spite of relatively small management scale. 
 In terms of agricultural output, the central role of Japanese agriculture is played by family farmers. 
Number of management bodies by sales amounts of agricultural products (2010) 
Total 
-1,000,000 
1,000,000 
-5,000,000 
5,000,000 
-10,000,000 
10,000,000 
-20,000,000 
20,000,000 
-100,000,000 
100,000,000- 
(Yen) 
Agricultural management 
body 
1,679,084 989,202 442,557 114,342 74,995 52,411 5,577 
Corporate 31,008 13,327 3,007 2,061 2,803 6,505 3,305 
Family 1,648,076 975,875 439,550 112,281 72,192 45,906 2,272 
Estimated agricultural output (2009, bn. yen/%) 
Total Corporate management Percentage Family management Percentage 
8,049.1 2,253.9 28 5,795.2 72
Family Farming Threatened by Aging and Decrease of Agricultural Population 
 However, family farming in japan is faced with serious depopulation and aging. The 
generation who has supported Japanese agriculture is now in the period of 
replacement. 
 Japanese agricultural population has decreased to a half during last 20 years: 4.8 
million in 1990 to 2.6 million in 2010. The average age of agricultural population is 
65.8 years old in 2010. 
 50-60 thousand people have started farming in recent years, but it has not caught 
www.ica.coop 
Family Faring in Japan (continue …) 
www.icao.coop 
up with the speed of decrease.
Urgent task of training farmers who can ensure adequate incomes 
 Decline of agricultural incomes is one of the causes of decrease of agricultural 
population and stagnated increase of next generation who succeed farming or 
newly engage in farming. 
 Net agricultural production (cost subtracted from agricultural output) was in the 
peak around 1990 and has been decreasing ever since. It has been decreasing by 
almost 20% compared to 1990 per farm household. 
 It is an urgent task to train farmers who can ensure enough incomes in order to 
secure successors/new farmers and maintain and develop agriculture. 
www.ica.coop 
Family Faring in Japan (continue …) 
www.icao.coop
 Today, JA Group promotes “Local Farming Vision” activity to envision and practice the future 
image of local farming and lives with households or settlements getting together and leading 
farmers and various types of farmers united. 
 This activity aims for making better community through expansion of agricultural production and 
improvement of farmers’ incomes by ensuring the individual roles of family farm management 
and through discussion in the community. 
 JA Group develops the nationwide activity to create communities where each person can play a 
www.ica.coop 
Family Faring in Japan (continue …) 
www.icao.coop 
role based on individual family farm management. 
• Fund for Farm 
Accumulation 
• Fund for Youths’ 
Engagement in 
Agriculture 
etc. 
Local farming vision 
Clarification of management bodies of 
leading farmers and farm accumulation 
Various types of farmers playing their roles 
Creation of production sites with local 
characteristics 
Creation of abundant communities through 
agriculture 
Political support from 
administration/ 
government 
Business/activity 
support by JA 
• Support for vision 
planning 
• Support for 
accumulating farms 
and business proposal 
for leading farmers 
• Organizing farming in 
settlements 
• Support for new 
farmers 
etc.
www.ica.coop 
For further information on country details 
www.icao.coop 
Please contact the original presenters 
India : Dr. Gopal Saxena, IFFCO gnsaxena@iffco.in 
China : Mr. Li Shun, ACFSMC coopshun@qq.com 
Japan : Mr. Maeda Kenki, JA-Zenchu maeda-kenki@zenchu-ja.or.jp 
Thank you for your attention

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Icao presentation han(final)

  • 1. www.ica.coop Family Farming in Asia Sangmin Han Senior Manager NACF EU Office 21 October 2014 icao.coop
  • 2. Family farming includes all family-based agricultural activities and is a means of organizing agricultural, forestry, fisheries, pastoral and aquaculture production which is managed and operated by a family and predominantly reliant on family labor, including both women’s and men’s. More than 570 million farms in the world, of which 88% (i.e. 500 million) are owned by families. www.ica.coop Family Farming www.icao.coop Responsible for at least 56% of agricultural production Family farmers work on a significant portion of the world’s farming land, regional averages are: - 85% in Asia - 62% in Africa, 83% in North & Central America, 18% in South America and 68% in Europe
  • 3. www.ica.coop Family Farming in Asia : small-scale www.icao.coop
  • 4. Rapid Globalization of the food sector and threats from large-scale commercial farming and industrial production Environmental changes brought about by climate change, floods, diseases and pests Lack of support in accessing markets, assets, seeds and technology www.ica.coop Major Challenges in Asia Farmers drainage with rapid industrialization and aging farmers www.icao.coop
  • 5. Reform the legal frameworks and policies on access to land, gender equity and youth in agriculture Develop country-specific data on family farming, including roles and structures of producer organizations Institutionalize national committees with meaningful multi-stakeholder participation, especially by farmers organizations, co-operatives, consumers, civil society and private sector Establish enabling conditions for producer organizations and co-operatives facilitating their access to policy-making processes, programmes and incentives that allow them to thrive www.ica.coop Recommendation by IYFF Regional Dialogue www.icao.coop Develop a strong campaign to promote the IYFF
  • 6. Women play a key role in family farms and hence programmes to address gender inequity in agriculture will pay dividends in terms or improved food security Providing access to quality inputs, technology and services like extension, credit and marketing will contribute to improving productivity of family farms Value chain development and promotion of entrepreneurship will boost economic viability of family farms Promotion of global alliances for strengthening the potential of family farms to address the zero hunger challenge Providing family farmers with adequate financial and scientific support to ensure food security should be the bottom line of all food and agricultural policies of developing countires www.ica.coop Recommendation by IYFF Regional Consultation www.icao.coop
  • 7. FAO-ICAO Joint Conference of Family Farming in Bali www.www.icao.ica.coop coop
  • 8. In India, family farming is refereed to small holder farming i.e. farming on the farms having size of less than 2 ha and dependent mainly on family members for carrying out most of the farming activities Out of 138 million ha land holdings available in India, about 86% (i.e. 117 million ha) is owned and maintained by small holders Contribute about 40 % of the total food production and 78% of the total agricultural production www.ica.coop Family Farming in India www.icao.coop
  • 9. www.ica.coop Family Farming in India (continue … ) www.icao.coop Challenges for family farming Land and tenure security - approx. 15 million farm families have no land - tenure of leased land for farming is not fixed - scope for land tenure security, land tenure reform Fragmented Land Holdings - size of land holding coming down due to bequeathing - reduction in cultivable land - wastage and inefficient use of costly farm inputs Water Shortages - dependence on rainfall & ground water - unsustainable extraction of surface and ground water - no access to irrigation water
  • 10. www.ica.coop Family Farming in India (continue … ) www.icao.coop Challenges for family farming Access to qualified farm inputs - could not afford to buy high cost inputs like seed, fertilizers … Low farm mechanization - farm equipment and machinery not viable for small farms Credit crunch & limited access to financial resources - difficulty in accessing credit services - dependence on private money lenders Impacts of climate change - increased temperature, water salinity, pest and disease attack - shift in weather
  • 11. www.ica.coop Family Farming in India (continue … ) www.icao.coop Challenges for family farming Globalization challenges - cannot take advantage of higher food prices being the small scale of operation - cannot compete with the larger business firms Limited access to markets - poor access and control over market and market information - weak bargaining power Lack of recognition of women in farming - contribution of women in farming undercounted - agricultural policies and programmes not sensitive to their needs Youths moving away from farming - distracted by non-remunerative and non-profitable of farming - interested employable in urban area
  • 12. www.ica.coop Family Farming in India (continue … ) www.icao.coop Co-operative Farming Due to globalization and entry of big retailers in India, contract farming is becoming successful. Practiced by many private companies However, benefit not reaching the small farmers, since small farms are not preferred for contract farming due to high transaction costs. Small farmers can get benefitted by organizing through co-operatives to do co-operative farming Co-operative Farming - farmers pool their land or collectively take land on lease - economies of scale in procuring farm input - better bargaining power, better price realization of the produce - can also integrate with contract farming by signing contract with private companies
  • 13. www.ica.coop Family Farming in India (continue … ) www.icao.coop Indian Farmers Fertiliser Co-operative. Ltd (ICAO member) One of the prominent national level multi-state co-operative society of India Largest producer and marketer of fertilizers in India Have more than 39,000 member co-operative societies, out of which about 36,000 are small holders IFFCO is playing a vital role in the development of small holder farming and improving the lives of farmers in following ways : - largely catering to the needs of fertilizers to small farmers - promotional programmes & extension services - save the soil campaign - information & communication technology - providing insurance facility - providing warehousing & collateral management services - providing access to commodity markets - social and cultural benefit
  • 14. www.ica.coop Family Faring in China www.icao.coop Major Problems of Chinese Agriculture : Farmer Drain : Migrant Workers ex) 70% of registered farmers with age b/w 18 and 55 worked in the cities (Wenshang County of Shandong Province, a typical agricultural area) Aging ex) 60-90% of farming work is done by people over 60 (Shanxi Province) Land Abandonment : 5~10 % land abandoned through out the year 40~50% land abandoned seasonally (Jiangxi Province) Low scale Economy - 0.61 ha/household (Nationwide), 0.22 ha/household (Zhejiang province) Financial difficulties : lack of credit accessibility, high interest rate
  • 15. Approach by All China Federation of Supply and Marketing Cooperatives: www.ica.coop Family Faring in China (continue …) www.icao.coop Land Trusteeship Total Trusteeship: give land to the cooperative and receive shared profit - wholesale trust : with the guidance and recommendation from the village council, a large number of farmers in a village entrust their land for a reasonable long term to the Supply and Marketing Cooperative (SMC). - pooling land : the fragmentary land are pooled together with industrialized farming, management, harvest, processing and marketing - share profits : The SMCs would bear the cost of land, and the profit from the land were shared proportionally among farmers and SMCs with some administration fee to the village council.
  • 16. Approach by All China Federation of Supply and Marketing Cooperatives: www.ica.coop Family Faring in China (continue …) www.icao.coop Partial Trusteeship: - whole chain service : SMCs offer the whole range of paid service from the land plowing, sowing, fertilization, harvest, processing and marketing for farmers to choose voluntarily. - minimum service level : Farmers who would like to join in the trusteeship program, shall paid for a minimum level of service from the SMCs as decided by the SMCs - discounted price : Farmers in the trusteeship program received the service and fertilizers at discounted price from the SMCs, compared with the market price * Monitor of Trusteeship by Village Council
  • 17. www.ica.coop Family Faring in China (continue …) www.icao.coop Common Principles of Trusteeship - voluntary participation - paid service - shared risk - shared profit - extended assistance Challenges of Trusteeship - concern about the long-term stability of trusteeship - farmers’ lack of risk sense and contract spirit - lack of fund to upgrade machinery and technology
  • 18.  The total number of agricultural management entities in Japan is 1,680,000, of which 1,650,000 are family management entities, accounting for about 98%.  While farm households have been decreasing, corporation management entities have been increasing. This is one of structural changes oven time. However, in terms of agricultural population, the center of Japanese agriculture is still family farming. www.ica.coop Family Farming in Japan www.icao.coop Year Number of agricultural management entities (thousand entities) Family farmers Corporations 2005 2,009 1,981 28 2010 1,679 1,648 31 Up down (%) -16.4 -16.8 10.4 Percentage (%) 2005 100 98.6 1.4 2010 100 98.2 1.8
  • 19.  In terms of agricultural output per management entity, corporation entities are generally larger in scale: They are only 1.8% in number, but produce about 30% of total agricultural output.  On the other hand, family management entities accounts for about 70% of the total agricultural www.ica.coop Family Faring in Japan (continue …) www.icao.coop output in spite of relatively small management scale.  In terms of agricultural output, the central role of Japanese agriculture is played by family farmers. Number of management bodies by sales amounts of agricultural products (2010) Total -1,000,000 1,000,000 -5,000,000 5,000,000 -10,000,000 10,000,000 -20,000,000 20,000,000 -100,000,000 100,000,000- (Yen) Agricultural management body 1,679,084 989,202 442,557 114,342 74,995 52,411 5,577 Corporate 31,008 13,327 3,007 2,061 2,803 6,505 3,305 Family 1,648,076 975,875 439,550 112,281 72,192 45,906 2,272 Estimated agricultural output (2009, bn. yen/%) Total Corporate management Percentage Family management Percentage 8,049.1 2,253.9 28 5,795.2 72
  • 20. Family Farming Threatened by Aging and Decrease of Agricultural Population  However, family farming in japan is faced with serious depopulation and aging. The generation who has supported Japanese agriculture is now in the period of replacement.  Japanese agricultural population has decreased to a half during last 20 years: 4.8 million in 1990 to 2.6 million in 2010. The average age of agricultural population is 65.8 years old in 2010.  50-60 thousand people have started farming in recent years, but it has not caught www.ica.coop Family Faring in Japan (continue …) www.icao.coop up with the speed of decrease.
  • 21. Urgent task of training farmers who can ensure adequate incomes  Decline of agricultural incomes is one of the causes of decrease of agricultural population and stagnated increase of next generation who succeed farming or newly engage in farming.  Net agricultural production (cost subtracted from agricultural output) was in the peak around 1990 and has been decreasing ever since. It has been decreasing by almost 20% compared to 1990 per farm household.  It is an urgent task to train farmers who can ensure enough incomes in order to secure successors/new farmers and maintain and develop agriculture. www.ica.coop Family Faring in Japan (continue …) www.icao.coop
  • 22.  Today, JA Group promotes “Local Farming Vision” activity to envision and practice the future image of local farming and lives with households or settlements getting together and leading farmers and various types of farmers united.  This activity aims for making better community through expansion of agricultural production and improvement of farmers’ incomes by ensuring the individual roles of family farm management and through discussion in the community.  JA Group develops the nationwide activity to create communities where each person can play a www.ica.coop Family Faring in Japan (continue …) www.icao.coop role based on individual family farm management. • Fund for Farm Accumulation • Fund for Youths’ Engagement in Agriculture etc. Local farming vision Clarification of management bodies of leading farmers and farm accumulation Various types of farmers playing their roles Creation of production sites with local characteristics Creation of abundant communities through agriculture Political support from administration/ government Business/activity support by JA • Support for vision planning • Support for accumulating farms and business proposal for leading farmers • Organizing farming in settlements • Support for new farmers etc.
  • 23. www.ica.coop For further information on country details www.icao.coop Please contact the original presenters India : Dr. Gopal Saxena, IFFCO gnsaxena@iffco.in China : Mr. Li Shun, ACFSMC coopshun@qq.com Japan : Mr. Maeda Kenki, JA-Zenchu maeda-kenki@zenchu-ja.or.jp Thank you for your attention