GENEVA (AP) _ Swiss voters Sunday rejected a draft law that proposed to increase support to small farmers, stop all state funds to so-called factory farms and introduce new rules for agricultural imports.

The government had urged people to oppose the proposed constitutional amendment, saying it would increase prices, split farming in two and cause problems with Switzerland's trading partners.

In the nationwide poll, 51 percent, or 773,084, voted against what was called the ''small farmers' initiative - for farming in harmony with nature, against factory farms.''

Ruedi Vaumann, vice-president of the Small and Medium Farmers' Association, which sponsored the initiative, said the margin of the result was ''a slap in the face'' for government agricultural policy.

Swiss President Jean-Pascal Delamuraz said the government would continue its present policies, with more emphasis on environmental considerations and family and mountain farms.

Vaumann's association has predicted that without a change in policy 20,000 farmers will go out of business by the end of the century, on top of 20,000 who have given up since 1975.

Nine of the country's 26 states voted in favor of the plan, mainly in urban regions.

At the heart of the initiative was a plan to pay farmers prices according to individual costs of production, which would have benefitted peasant farmers in mountainous regions.

It also proposed removing all forms of state aid from enterprises rearing animals or growing crops on a mass-scale, which have been criticized on animal welfare and environmental grounds.

The plan additionally proposed to introduce new import rules to shield farmers against competition from cheaper foreign produce.