This case study of small farmers made in Naktajhijh village panchayat near the selected FAO project village Sakhwa,  is to determine the attitude and reactions of small owner operators, share croppers and landless agricultural labourers towards the rural institutions. It deals mainly with six institutions and their organisational set-up, their mode of operations and interaction with the farmers at the village level. These institutions include those involved with agricultural extension, credit, cooperative, land reform, marketing and village government. This study also provided the basis for a comparison between areas with and without the FAO Field Action Project.