Farm income dips, so do lease rates

Balwant Garg

Tribune News Service

Faridkot, April 27

The lease rates of agriculture land have started sliding in the area in line with a fall in the prices of crops, mainly basmati and cotton.

The owners had leased out their land at the rate of Rs 45,000 to Rs 53,000 per acre per annum last year in Malwa region. But the new rates are being quoted at Rs 39,000 to Rs 44,000.

Sources said the farmers who had taken land on lease last season had incurred loss due to crashing prices of basmati and cotton. Now, the farmers are facing harassment in selling wheat. The developments had taken a toll on the land lease rates, they said.

A large number of small farmers take land on lease for cultivation. Many farmers say they are not able to make enough money to recover the input costs and lease rates.

The land lease rates had seen a jump after basmati generated high profits for growers in 2013-14.

Owing to high rates, more and more farmers opted for basmati last year. Resultantly, there was an impressive increase in the annual lease rates, which rose from Rs 35,000 per acre to Rs 48,000 per acre per annum.

Dalip Singh, a farmer of Golewala village of Faridkot, said cultivating land on contract was no longer viable owing to high input costs and low crop prices.

Jaswinder Singh, a farmer of Nangal village in Faridkot, said the rising prices of fuel, farm machinery, labour and harvesting leave a little profit for the lessee. Moreover, there was always a risk of crop loss due to uncertain weather, he said, adding that in such a case, the government gave relief to the landowners and not the actual growers.

To get back this relief amount from the land owner back is a difficult task for the lessee, said Gurmeet Singh, a farmer of Duareana village in Faridkot.

Inclement weather conditions in the last few weeks added to the farmers' woes. Besides, there are reports that monsoon would be below average this year. All these developments have discouraged farmers to opt for contractual farming since it involves high risk.