What is the current state of affairs?

Currently, states apply various degrees of limitations on farmland leasing. While Kerala outright forbids leasing, states such as Bihar allow leasing by specific types of landowners, such as those who are handicapped, widows, or members of the military services.

Only handicapped owners were permitted to lease land in UP. Renters in Punjab, Haryana, Gujarat, and Maharashtra have the ability to acquire land from the owner after a term of tenancy—a regulation that discourages leasing or forces owners to shift tenants regularly.

The model law’s goal is to allow owners to lease agricultural property to tenant farmers without fear of losing it. This would allow idle land to be effectively utilized, as well as enabling tenant farmers to invest in the property and have access to finance and insurance. According to estimates, tenant farmers manage around 20% of land holdings, with the proportion rising to 60% in regions like as Andhra Pradesh.

The following are key aspects of the model Act:

  • The model law makes bank financing, crop insurance, and disaster aid available to tenant farmers and share croppers.
  • The model law will allow farm land consolidation, allowing tiny parcels of land that are economically unviable to be leased out (using tractors and farm equipment is not economically viable for small plots of 2-3 acres). Large operational holdings will lower cultivation costs and enhance farm profitability.
  • There will be no cap on the quantity of land that may be leased out or consolidated since the state prefers to let market forces decide the size of operating holdings. The length of the lease and the amount of the compensation will also be agreed upon between the owner and the renter.
  • Land can also be leased out for linked enterprises such as cattle or animal husbandry for a maximum of five years under the new rule.
  • In the event of a disagreement, the Model Act suggests that recourse be taken through criminal procedures and a special tribunal to expedite the litigation process. Disputes will be resolved at the Gram Sabha, Panchayat, and Tehsildar levels, outside of the jurisdiction of courts.

Measures should be made to preserve small and marginal farmers’ interests

It has been reported that around 36% of India’s tenant farmers were entirely landless, 86 percent owned less than two hectares, and 56% owned less than one hectare of land. As a result, small and marginal farmers require particular consideration.

  • The Act’s stringent limitations must be eliminated so that small and marginal farmers can lease property without difficulty.
  • Farmers must be properly informed and educated on the benefits of land leasing to their household income and quality of life.
  • They must be educated about the benefits of land leasing as well as the norms and restrictions in order to avoid being duped by industrialists and huge landowners.
  • Because the majority of small and marginal farmers rely on cattle, grazing areas must not be leased out under the name of fallow land.
  • Farmer groups have been vocal in their opposition to the exploitation of agricultural land for industrial reasons.
  • Furthermore, corporate entities should not be handed agricultural property in the name of poor farmers. There should be a sustainable ceiling on the amount of land available for leasing, and it should also be available to landless people, agricultural laborers, and jobless youths at the household level.

Conclusion

Overall, the Model Land Leasing Act, if correctly implemented and in the right spirit, will be of tremendous assistance to Indian agriculture, which is under stress due to a lack of agricultural efficiency and production.