86% of India's farmers own less than 2 hectares of land. Why it matters

Small and fragmented landholdings remain a major challenge for Indian agriculture, limiting farmers' ability to improve productivity and increase their earnings. Speaking at the India Today Kisan Tak Conclave 2026, Dr Bina Agarwal, former Director of the Institute of Economic Growth, said 86% of farmers have less than two hectares of land, while 70% have less than one hectare. She argued that farmers can improve productivity and returns by working together rather than farming in isolation. Citing NABARD's Joint Liability Group model, she said groups of six to 10 farmers can access subsidised credit without collateral. Agarwal cited Kerala, where 73,000 such groups have been formed. Their productivity is twice that of an individual farmer's family, while their net returns per hectare are 1.6 times higher. Her remarks underline how collective farming could help small farmers overcome the limitations of fragmented landholdings.