The establishment of Farmer Producer Organizations (FPOs) plays a significant role in climate change adaptation programmes by fostering collective action and strengthening the resilience of small and marginal farmers against climate risks. FPOs enable farmers to pool resources and build economies of scale, which facilitate the adoption of climate-smart agricultural practices, diversification into more resilient crop varieties, and integrated resource management at the community level. By organizing farmers, FPOs help secure better access to inputs, infrastructure, and financial safety nets such as insurance, while encouraging participatory irrigation management and sustainable water use through Water User Associations and similar mechanisms. As part of climate adaptation pathways, FPOs promote timely investments in grain storage, irrigation infrastructure, and mechanized solutions, enhance access to markets for climate-resilient produce, and support tailored interventions based on local vulnerabilities such as drought or heavy rainfall. Overall, the coordinated efforts through FPOs facilitate knowledge sharing, foster adoption of adaptive technologies, and empower farming communities to better manage climate risks, contributing to both improved livelihoods and ecological sustainability. Agriculture is the mainstay of economy in the district and about 80% of the population is mainly dependent on the agriculture. Sirmaur district has about 85% small and marginal farmer families and the holdings are very small and scattered. The yield of crops is below the norm. Major food crops are grouped in three categories namely cereals, pulses and other food crops like chillies, ginger, sugarcane and turmeric. Non-food crops are of two kinds viz. oil seeds and other crops such as cotton, tobacco etc.

The objective of the formation of Farmer Producer Organization is to have organic links with the community institution architecture of Self Help Groups and federations and focus more on creating value chains for small and marginal farmers and producers by enabling direct market linkages. At least three FPOs will be formulated and activation of one FPO is the main target of the project. At the village level, Producer Groups are being formed by mobilising anywhere between 20–100 small farmers depending upon the commodity in focus. These Producer Groups serve as effective platforms for collective orientation and capacity building of producers while facilitating backward linkages through parent producer companies. The small farmers are oriented on benefits of aggregation and quality control. Production planning is being undertaken at the start of every season to aggregate demand for inputs as well as to ensure potential procurement volume. Village level Producer Groups are being equipped with requisite basic infrastructure and quality control tools to serve as primary aggregation hubs. Village level Producer Groups serve as the interface between Producer Groups and the FPCs and deliver services like training, weighing, quality assessment and daily price communication.