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ture in gross domestic product declined substantially in
almost all the developing countries, while the share in
total employment dropped marginally and consequently
agricultural income per worker is very low. There is also
wide intercountry variation in crop yields and incomes.
Countries like South Korea and China have comparatively
much higher crop yields and farm incomes than other
countries, especially in South Asia.
The average incomes of small family farms are lower than
those employed outside agriculture, due to the small size of
farms, low crop yields, high input costs, low output prices
and low access to off-farm and non-farm employment. Even
though the land productivity of small family farms is some-
times higher than that of large commercial farms, the net
farm incomes are lower. Most marginal and tenant farmers
neither produce enough for home consumption nor earn
enough to purchase food from the market. Improving the
productivity and incomes of small and marginal farmers,
tenants, women and landless cultivators is crucial for food
security and poverty alleviation in the developing countries.
There are numerous challenges as well as opportunities
for small family farms. First, the yield gaps, reflecting the
difference between farmers’ yields and technical poten-
tial yields, are huge in most of the Asia-Pacific countries.
In India, this is between 200 per cent and 300 per cent
in some crops in some regions.
2
Bridging the yield gaps
through appropriate extension, credit and other support
services and the use of new technologies such as hybrid
seeds and biotechnology holds tremendous potential for
productivity improvement.
Second, the majority of small family farms produce mainly
for self-consumption and sell only part of their produce. This
helps them to ensure food security even in times of food
price inflation. But they do not produce enough of every food
item to avoid dependence on the market. Small farmers’ lack
Shubhankari Nag’s story
Until recently, Shubhankari Nag lived in a small rented shelter
without any security. She received a 5 decimal plot of land under
Nijo-Griho Nijo-Bhumi scheme of the Government of West Bengal
in March 2012.
“I worked hard in the hope of enhancing my family’s income,
but options were few,” she said. “Now, after getting land and
a house from the Government, things are changing. I have
nurtured a small kitchen garden; fresh vegetables from my garden
supplement our diet. I can even sell a portion to earn a little. I am
also rearing cows. I now generate about Rs200 per month which
goes into supporting my children’s education. I have never felt so
happy before.”
Source: Wings, Department of land and Land Reforms, Govt. of West Bengal, 2012
Levels of agricultural productivity, incomes and poverty in selected countries
Source: World Bank Development Report, 2013
Country
Average size of holding (Ha)
(latest)
Cereals yield (Kg/Ha) 2012 Agricultural value added per
worker (constant US$) 2012
Latest poverty headcount
national poverty line
Bangladesh
0.35
2,980
491.9
31.51
Bhutan
NA
2,665
624.9
23.2
Cambodia
NA
3,178
523.8
30.1
China
0.67
5,839
749.4
2.8
India
1.16
2,954
672.1
21.9
Indonesia
0.79
5,081
979.2
12.5
Lao PDR
1.57
4,082
475.8
27.6
Malaysia
1.01
3,994
9,290.5
3.8
Nepal
0.79
2,719
270.4
25.2
Pakistan
3.09
2,876
1,063.5
22.3
Philippines
2.01
3,493
1129
26.5
Sri Lanka
0.47
3,843
998.7
8.9
Thailand
3.16
3,097
1,136.2
7.75
Viet Nam
0.71
5,462
467.7
14.2
South Korea
N/A
7,271
23,882.3
N/A
D
eep
R
oots