Benefits and Myths of Farm Bills


Since September 2020 the government is strictly adhering to its decision and sticking to the regulation of the Farm Bills. Despite the constant resistance from the farmers the government still says that the new Farm Bill will bring about a change and is for the good of the farmers themselves. So after all these statements that are presented in defense from the government should we assume that is this the struggle before some larger gains? Is the Farm Bill about to bring a revolution for the farmers in the times to come? And what are the myths and Benefits of Farm bills?

This article would tell you that only. What are the perspectives of the government and what is in the Farm Bills 2020?  

Farmers’ Produce Trade And Commerce Act 2020

Though there are many rumors in the air about the Farmers’ Produce Trade and Commerce Act the act is not cruel as it is being presented. 

The Act directly aims at extending the reach of the farmers when it comes to selling their agricultural produce.

Myths and Benefits of Farm Laws

Until now, the farmers can only sell their crops in Agricultural Produce Market Committee which is known as “Mandis” in common terms. With this act in enactment, the farmers could directly sell their crops wherever they want and at whatever prices.

The myth around this Farm Bill      

Farmers think that with the advent of outsiders government would no longer care for them. This would result in the first gradual and then total abolition of the MSP.

In such a scenario the hold of the situation would be in the hands of the private firms, who would then control the prices as well. They also fear that this can also result in a situation in which the prices would even drop lower than the MSP. 

The government has a different story to tell. The government has assured that there would be no abolition of the MSP and things would continue as they are. It is just an addition to the existing system.


Benefits of this Farm Bill

After knowing the myths let’s see the benefits of this farm bill.

Opening doors for outside trade is the main advantage of this bill.

minimum support price and Farm Bills

Now farmers can even opt to sell at online mediums and at a price that is higher than the usual MSP( Minimum Support Price).

Farmers can even serve the need for factories, silos, and warehouses.


Farmers’ Agreement on Price Assurance And Farm Service Act 2020

The second act on the Farm Bill series wreaked no less havoc on the farmers than the first one, but this one also aims for betterment. According to this Act, the government wants to promote the concept of contract farming.

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Contract Farming means meeting your buyer before even sowing the crop and entering into an agreement.

This agreement is regarding the security of the produce. The things that would be stated in this agreement would be the quantity of the product and the price at which it would be bought by the buyer.

Benefits of the Farm Bill

If viewed properly then this bill is beneficial as the farmers could work on a single crop and also can get a price higher than the normal prevailing market rate. 


They can even do contract farming for several buyers depending upon the land owned.

The biggest advantage would be the assurance that the farmers would get before even starting the work. 

Myths regarding this Farm Bill

Farmers say that many contractors ask them to work for them on a particular crop but many a time refuses to buy the stock.

farmer in worry

They even exploit them on the grounds of poor quality giving them a lower price. In such a case the farmers are left with no option other than suffering the loss.


They even end up in loans that some of them take initiative to buy seeds and fertilizers. 

The biggest myth is that such a condition would recur more frequently after this Act but it is not so.

The government will bind the buyer to make a legal contract with the seller. There would also be a dispute settlement mechanism ready to help those in distress. Sub-Divisional Magistrate and Appellate Authority would be the one responsible. 

Read more on Farm Laws and its possible drawbacks

Governments plan to work on the grass-root level

With the private institutions entering the market prices would be influenced to a great extent. With the existence of MSP prices would not drop down below a stipulated rate. So there are all the possibilities of the prices to rise. This would in turn increase the farmers’ earnings, improving their financial condition. If the farmers are better off then the nation will thrive as well. 


Now that we have discussed the myths and benefits of all farm bills. Let’s see what are the benefits to the country.

Benefits to the Economy

Farm Bills will boost the economy

Economic conditions would also improve will the increase in welfare. GDP would automatically increase when domestic production is increased. By encouraging exports, exporters would contact the farmers to work for them and produce in bulk. This would increase the net exports making the economy stronger. 

Benefits to the Government

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The government would also be relieved of the burden of buying all the agricultural produce. Now it can deviate some of the money to other important projects and make the nation grow. 

You may like reading How Indian economy can recover from Covid Recession


If the government keeps all its promises and if the Farm Laws work in the designated way then they are sure to bring about some positive change. It has never happened before that after so much protest the government is still sticking to its words of not taking the bill back.


So it is likely to presume that there is something big and good in the bills that we are surely missing out on. But I request everyone to Spread awareness about the benefits and myths of Farm Bills.

sanskriti gupta | GENUINE MATTERS
Sanskriti Gupta
Like researching, reading and dwelling deep in the topic to bring out the best of any subject matter, because Being opinionated is important and appreciated only if you have the appropriate and right amount of knowledge and facts to back up your material with.

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