This study aims to assess the effectiveness of farmer groups in managing business units and identify problems that reduce the effectiveness of farmer groups. The research location was in Kebakkramat District, Karanganyar Regency. The objects of this research were the farmer groups that manage government-assisted tractors. The data collection techniques used in-depth interviews, focus group discussions, and documents. The results of the research were that there was only one effective farmer

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... , while the other nine farmer groups were less effective. Problems that reduced the effectiveness of farmer groups were difficulties in adding marketing areas, limited tractor operators, difficulties to gather members, and members are reluctant to become managers. Only the government will be able to overcome the problems by issuing regulations to form business entities and expand marketing.