INTRODUCTION
Today
commercialization of agriculture is an inevitable reality throughout the whole
world. There are a number of factors
affecting the commercialization process in agriculture. Some of them could be
named as rapid growth of economies in the both developing and developed
countries, introducing of new technologies, market expansion, market
liberalization, urbanization, rapid increase of demand for food, decreasing of
farming population, liberalized and open economic policies, bilateral and
multilateral economic agreements, developed infrastructure facilities in
farming areas and government agricultural policies. However, commercialization
in agriculture is not a new phenomenon and it is not a surprise to the farming
community. Since the nineteen fifties, farmers in most of the countries have
moved towards commercial agriculture. Their major objective was surplus
production aiming market prospects. Agricultural extension plays a major role
in agricultural production.
Role of agricultural extension in a commercialized
agricultural system is different from such service in subsistence farming
system. In the commercialized agriculture the extension service will mainly
concentrate on the resourceful big farmers, with favorable environmental
conditions and higher socio-economic status. Under the commercialized
agriculture the number of farmers is to be reduced and the size of the farm
land should be increased. This is a generally accepted concept in commercial
agriculture. Do we have to accept this concept under each and every situation?
We think the answer is “no”. By using improved technologies farmers can move
towards commercial agriculture without considering the size of land. Under
protected agriculture, farmers follow concepts of the commercial agriculture.
Commercial livestock farming does not rely on the farm size except diary
farming.
However, the role
of agricultural extension in the commercialized agricultural system is mainly
dependent on the type and way of
commercialization in a given society. We have to expect that agricultural extension
services are supposed to fulfill many aims, from reducing rural poverty and
improved livelihoods for rural households to increasing the overall production
and contributing to foreign exchange earnings from exports. But the level and
percentage of this contribution may vary from one situation to another.
CONCEPTS
OF RURAL EXTENSION
Agricultural extension was
once known as the application of scientific research and new knowledge to
agricultural practices through farmer education. The field of extension now
encompasses a wider range of communication and learning activities organized
for rural people by professionals from different disciplines, including agriculture,
agricultural marketing, health, and business
studies.
‘Agricultural Extension is an ongoing, non-formal
educational process which occurs over a period of time and it leads to improve
the living conditions of farmers and their family members by increasing the
profitability of their farming activities. In this activity, to achieve above
goals, it expects the improvement of the farmer’s knowledge, skills and change
of their attitudes in agricultural technology, farming activities and
agricultural marketing.’
Today extension should look into increasing the
productivity of the farming business as a whole. It includes both direct
farming activities and off farm or farming related activities. Agricultural
extension should assist, guide and direct farmers to identify both farming and
non-farming activities which can increase their net income.
Therefore, the
mode of agricultural extension is also a key factor which affects the degree of
commercialization of agriculture. Today, agricultural extension is a
commodity with a certain price. This commodification of agricultural extension,
the transforming of knowledge into a product for sale, helped to revolutionize
both public sector extension and the business of private sector technology
transfer (Rivera 2000). This revolution took place not because of anything
else, only because of the commercialization of agricultural extension.
CONCEPTS
AND PRACTICES IN AGRICULTURAL EXTENSION
Under this concept, first,
agricultural extension is considered as a commercial product or service, which
exchanges between two parties over a required payment. Simply one party
(extension providers) acts as sellers and other party (farmers) acts as buyers.
Secondly, basic economic theory of supply and demand is applied in this
process. Agricultural extension service becomes a totally demand-oriented
activity. Thirdly, extension can also be considered as an input such as
fertilizer, improved seed, agro-chemicals, machinery, etc, which is essential
for the commercially oriented farming. As farmers have to pay for other inputs,
they have to pay for extension services also.
The basic concept is that
farmers have to pay for the service which they get. Either farmers pay totally
or partially, it depends on the extension approach. Farmers may pay the full
amount of the fee or the government or other funding agency could subsidize it
fully or partially. However, finally extension providers are being paid for
their service. These extension providers are not essentially to be private
sector companies or individuals. It can be a government or semi government
extension agency.
Different Approaches of
Commercialization of Agricultural Extension
There are a number of
extension approaches that can be listed. Here, I would like to categorize them
into following groups.
·
Decentralization
Decentralization of
agricultural extension refers to one way of gradual transfer of responsibility
for extension from the public to the private sector. It involves the transfer
of planning, decision making, management, from the central government and its
agencies to field organizations, subordinate units of government,
semi-autonomous public organizations, regional organizations, chambers of
commerce, and even non governmental organizations.
·
Public cost recovery approach
To cope with serious fiscal
constraints and by changing structure of the farming sector, most of the
governments have begun charging fees for some extension services they provide
to the rural sector. The degree to which these cost recovery programs have been
pursued has varied across countries.
·
Totally private extension delivery approach
The major idea of this is to
transfer delivery of extension services mainly to the private sector. Several
types of private firms currently undertake agricultural extension activities.
These include agro-processing firms, input suppliers, media companies and
consulting firms.
·
Contracting of extension services
There are two types of
extension contracting viz. “contracting out” and “contracting in”. Contracting out means public sector or state
provides financing and private sector delivers the extension service for the
financing authority. Contracting in means private organization or an NGO
provides funds and public sector organization delivers the extension service.
·
Farmer taxation
Farmers are taxed for the
services provided to them directly or indirectly. For instance in Sri Lanka,
tea small holders are taxed indirectly for the extension services provided to
them through Tea Small Holders Development Authority which is a semi government
body.
·
Pluralism
Pluralism or pluralistic
extension system means using both public and non-public institutions for
delivering extension services to farmers (Qumar, 2001). In many developing
countries, various non-governmental organizations, private input supplying
companies, semi governmental organizations deliver extension services parallel
with the public sector extension services.
Conclusion
Commercialization
of agricultural extension becomes a reality today. Therefore we cannot survive
only with free of charge extension services which are mainly owned by the
government sector. Today most of new technologies are developed by research
institutes and/or commercial firms by spending a large cost. As an example, a
new variety of paddy or maize was developed by spending millions of dollars.
Today most of these research institutes or commercial firms are profit-oriented
institutes. They are not prepared to give this technology free of charge. Therefore, commercial
extension service has to purchase it and sell back to the farmers.
But this is not
the reality in the farming world. There are millions of resource-poor farmers
in the developing countries. They will be marginalized by commercialized
extension services and therefore a number of social problems may arise. So, the
state owned free of charge extension services should concern themselves with
these resource- poor farmers.
Considering all these facts discussed
throughout this paper, the role of extension in commercial agriculture can be
summarized as follows:
·
Durability of the service depends on quality,
effectiveness and efficiency.
·
The extension service should provide
information and advice not only on cultivation practices, but also in farm
planning and management, post harvest practices and management, marketing and
alternative income generating sources and technologies.
·
Information and knowledge delivered by the
extension service should be cost effective. Else, the sustainability of the
service would be in danger.
·
Commercialized extension service should
identify alternative strategies not to marginalize resource-poor farmers in the
community.
·
Extension service should provide a number of
alternative recommendations rather than a package. Then farmers can select the
best solution or recommendation out of the alternatives.
·
Delivery of public goods is a problem because
they are non- excludable and non-rival. Also, many types of agricultural
information are not pure public or private goods: information may be highly
excludable but at the same time non-rival within that group. Extension service
has to identify new methods to deliver this type of goods, because these cannot
be delivered for a fee.
·
They have to pay sufficient attention to
environmental issues, not merely increase productivity. One of the major
criticisms against commercialized extension services is trying to increase
productivity without considering environmental issues which is very important
for the sustainability and balance of
the environment.
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