In sports, a farm team, farm system, feeder team, or nursery club, is generally a team or club whose role is to provide experience and training for young players, with an agreement that any successful players can move on to a higher level at a given point. This system can be implemented in many ways, both formally and informally.
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, business schools are occasionally referred to as "farm clubs" in the world of business.
In the United States and Canada, Minor League Baseball teams operate under strict franchise contracts with their major league counterparts. Although the vast majority of such teams are privately owned and are therefore able to switch affiliation, those players under contract with the affiliated Major League Baseball team are under their exclusive control, and would move to the MLB club's new affiliate. Not all players on a minor league team are under contract with the MLB club; however, the parent club has the exclusive right to "purchase" the contract of a non-contract player at its affiliate.
Minor league teams are usually based in smaller cities and players who are contracted to them, as opposed to major league players sent down to this level for rehabilitation or other professional-development assignments, are typically paid significantly less than their Major League counterparts.
Most major league players start off their careers by working their way up the minor league system, from the lowest (Rookie) to the highest (AAA) classification, with the rare exceptions usually being those players signed from Japan's Nippon Professional Baseball. Since the elimination of the Bonus Rule, only a very small number of amateur players have gone directly into the MLB, including John Olerud, Jim Abbott, and Dave Winfield. The process of a player working his way up through the minor leagues is formally referred by most MLB teams as "player development". However, minor league affiliates are often informally referred to as "farm teams" and a major league player's misfortune of being sent back to the minors is sometimes described as being "farmed out".