Rao, who addressed a meeting of agriculture officers here, asked them to ascertain details of revenue villages under their jurisdiction and the extent of land holdings by each farmer.
He told the officials to ensure that all the farmers have bank accounts.
Rao said farmers associations should be formed at village level. Federation of farmers associations should be constituted at mandal, district and state level.
The federations would take up purchasing agri produce among other functions, he said.
The chief minister has already announced that the government would provide Rs 4,000 towards farm expenses to all farmers for both Kharif and Rabi seasons.
Rao said that he had raised some of these points during a meeting with prime minister Narendra Modi.