This article is a case study of small farmers made in Naktajhijh village panchayat, Dhankuta, Nepal. The study area is near the selected FAO project village Sakhwa. The study aims to determine the attitude and reactions of small owner-operators, share croppers, and landless agricultural laborers towards rural institutions. It deals mainly with six institutions and their organizational set-up, their mode of operations, and interaction with the farmers at the village level. This study also provides the basis for a meaningful comparison between areas with and without the FAO field action project. It includes 4 appendices. (Rajeev Ranjan Singh 2007-01-12)