Important Steps to Take When Renting or Sharecropping Farmland for Government Scheme Benefits

Key Highlights

• Formal contracts are mandatory for sharecropping or renting farmland.
• Without contracts, farmers may lose government scheme benefits.
• Contracts protect both landowner's and sharecropper’s rights.
• Valid contracts ensure access to schemes like crop insurance and MSP.
• Contracts must be submitted to the Tehsildar for approval.

Farmers in India benefit from various government schemes like the PM Kisan Yojana, Pradhan Mantri Fasal Bima Yojana, Krishi Yantra Anudan Yojana, and Crop Damage Compensation. These schemes often provide financial assistance directly to farmer’s accounts. However, when renting or sharecropping farmland, certain rules must be followed to avoid losing out on these benefits. A key requirement is signing a contract, as mandated by the state government. Without this, the farmers may not be eligible for government aid. Here’s what you need to know.

What is Sharecropping?

Sharecropping is a system where the landowner gives their land to another farmer to cultivate in exchange for a share of the crop. The sharecropper performs all the farming activities, while the landowner only collects a portion of the harvest. Under the government schemes, the sharecroppers may also receive financial aid if a valid contract is in place.

Similarly, renting land for farming, where rent or a fixed payment is agreed upon, also requires a formal contract. This legal arrangement ensures the farmer leasing the land (known as a Sikmi farmer) can also have access to the government schemes.

Benefits of Signing a Land Contract

A formal contract not only secures the rights of sharecroppers and Sikmi farmers but also provides access to government schemes. This is crucial as the government aims to ensure that benefits reach the actual farmers working on the land. Without a contract, the farmers may lose out on schemes like crop insurance, compensation, and minimum support price (MSP) assistance.

State Government Rules for Land Contracts

In states like Madhya Pradesh, the Madhya Pradesh Land Owners and Sharecroppers Interest Protection Act 2016 recognizes the practice of sharecropping and protects the interests of both landowners and sharecroppers. According to Rule 4 of this Act, a contract must be signed by both parties and a copy submitted to the local Tehsildar for legal validation.

Consequences of Not Following the Rules

If the land is given on rent or sharecropping without a proper contract, sharecroppers may suffer losses. They won’t be able to claim benefits like compensation for crop damage, insurance, or minimum support prices (MSP) for their agriculture and agricultural produce. Having a valid contract ensures that both landowners and sharecroppers can access these benefits, securing their interests.

Why Contracts Are Important for Sharecroppers

The Madhya Pradesh government has made contracts mandatory for sharecropping farmers to prevent fraud in the registration process for selling crops at MSP. Previously, individuals would fraudulently register land in their names to profit from MSP, leaving the real farmers without access to the schemes. Now, with mandatory contracts, only the legitimate sharecropper or Sikmi farmer can register and sell crops under MSP guidelines.

How the Contract is Made

According to the Madhya Pradesh Land Owners and Sharecroppers Protection Bill, 2016, there are no restrictions on the number of sharecroppers a landowner can have. However, a copy of the contract must be presented to the local Tehsildar, and the Revenue Department must approve it. This process safeguards the interests of both parties involved in the sharecropping arrangement, ensuring that the benefits of the government schemes are properly being distributed.

Also Read: Government Offers Rs 12 Lakh Subsidy on Crop Drying Dryer Machine – Apply Now!

CMV360 Says

When renting or sharecropping land, farmers need to formalize the arrangement with a proper contract. This ensures that they can access government schemes and protects their rights as landowners or sharecroppers. By following these rules, farmers can maximize the benefits provided by the government and secure their financial future.