Quick Facts About Farm Law

MINISTRY OF
AGRICULTURE &
FARMERS WELFARE
GOVERNMENT OF INDIA

Quick Facts About Farm Law

The Farmers’ (Empowerment & Protection) Agreement on Price Assurance & Farm Services Act, 2020 

• Farmers can enter into a written agreement to sell their produce even before sowing their crops which will guarantee an assured price for their produce
• Ownership of crops be retained by the farmer during production
• Agreements may provide for the sponsor to provide inputs like farm machinery, equipment, technical advice, etc.
• Farmers will earn more due to the huge demand for high quality agricultural products in international markets which will also improve the quality of their produce
• Will protect farmers from natural calamities & weather risks & will continue to provide benefits of insurance schemes like PM Fasal Bima Yojna
• Farmers can avail credit facilities from financial institution & benefits under Kisan Credit Cards
• The agreement will cover only the crops of the farmers & not the land; Hence the sale of land, lease, or mortgage is completely prohibited
• In case of any construction on farmer’s land, the farmer will have its sole ownership. There will be no recovery against the land of the farmers
• The farmers can get more income by fixing a profitable price at the time of the agreement