It is said that real estate development in urban areas has converted the cities into “Plot-istan”, as property has become the guaranteed form of investment where returns only point north. Plotting of prime land has no doubt become a bane; however, is nothing compared to the fragmentation of land seen in rural areas during past three decades.
According to figures based on last Agriculture Census of 2010, more than 80 percent of Pakistan’s farmers own land size under 10 hectares (or 25 acres). In terms of aggregate land area, this represents more than 60 percent of country’s farm lands.
Over the years, average farm size in the country has come down to less than 1 hectare, from 1960, when the number stood at barely over 2.6 hectares. Compare this to average farm size of 63 hectares in Brazil, and 179 hectares in USA.
While Pakistan’s agriculture has long been dominated by small farmers, increasing population and large family sizes has led to splitting of land over multiple generations which has exacerbated the situation. Today, at 25 percent of total, farmers owning less than 0.5 hectares of land has become the largest group, barely enough land to even provide for an average family size of 6.5 persons.
With these statistics, it is no wonder that about two-thirds of Pakistan’s agricultural community is classified as subsistence farmers, defined as “farmers who grow food crops to feed themselves and their families; the output is targeted for survival, with little or no surplus trade”.
While agriculture’s share in employment may stand at 42 percent, using the most conservative estimate of farmers with less than 0.5 hectares as the absolute level of subsistence, at least 11 percent of farmers make no contribution to agricultural value chain.
Thus, while “agri as the largest employer” has become a popular mantra for continued governmental support to the sector in the form of subsidized credit, a meagre canal water charge, subsidized electricity on tube well, and support price among others, only a marginal percentage of official support actually makes its way to the weakest segment of rural community.
Moreover, given the obvious correlation between farm holding size and productivity due to scale, it is no surprise that these subsistence farmers are unable to invest in yield improving tools to grow cash crops that contribute most to the agri-value add, such as cotton, rice or cane.
While the new government has hinted at imposing an “Agricultural Emergency” to arrest falling yields, nothing short of a radical rethink can usher in a revolution in a sector, which by the way, also consumes more than 90 percent of country’s water sources.
Pakistan needs a consolidation of farming land to incentivize private sector investment in productivity tools such as mechanized agriculture, high-yield seeds, and water conserving infrastructure. Whether that may come in the form of cooperative, corporate or any other form is of course an open question. But the debate must begin, and now.
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