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A farm team, or farm club, generally refers to a minor league baseball league which are at a lower pay level and play in smaller cities and towns than do Major League Baseball, and which are under the control of the two major leagues and are used for development of younger players.

The existence of the minor league system is partly due to major league baseball's ability to include a reserve clause in the contracts with minor league baseball players which gives a major league team exclusive rights to a player even after the contract has expired. This is possible in baseball because of a 1922 Supreme Court decision which grants baseball a special immunity from antitrust laws.

The term is also used as a metaphor for any organization or activity that serves as a training ground for higher-level endeavors. For instance, sometimes business schools are referred to as "farm clubs" for the world of business.



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