An indefinite curfew has been imposed in the town.
Former sarpanch Hari Singh Prajapati was killed in police firing while three others sustained bullet injuries, police said.
Raisen Collector Mohanlal Meena and SP I P Kulshrestha among other officials and about 35-40 farmers also sustained injuries in the violence, police said.
The farmers who were seriously injured were rushed to Bhopal, they said.
The farmers were enraged over delay in procurement of wheat at the designated centres and staged a road blockade at NH-12 (Jaipur-Jabalpur). They allegedly attacked police with sticks and set afire nearly half-a-dozen vehicles belonging to police and administrative officials.
Police then cane-charged the agitating farmers, fired in the air and bursted teargas shells to control them, the sources said, adding officials first imposed section 144 in the town and later the Raisen collector and SP after reviewing the situation imposed curfew in the town.
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The situation is tense but under control, police said.
The farmers gathered in strength at Bareli after the alleged suicide committed by a farmer, Bhagwan Singh Rajput yesterday at Manpur Wheat Procurement Centre in the district on the call of Bhartiya Kisan Sangh, an affiliate of RSS to protest shortage of jute bags, mismanagement at these centres and involvement of middlemen in the process.