Agricultural Land Conversion and Challenges for Tenant Farmers: Empirical Evidence From Pakistan

ABSTRACT Agricultural land conversion (ALC) is a common phenomenon, particularly in developing countries that is driven by motives of urban development and growth. This conversion causes a loss of income source, causing unemployment and food insecurity among rural communities. This study aimed to investigate the socioeconomic impacts of ALC on tenant farmers/sharecroppers' households. Data were collected through a questionnaire survey and statistical techniques were used to compare the data before and after the ALC. Moreover, the regression model was employed to estimate the important determinants of land conversion. Results showed that most of the farmers' lands were converted into a non‐agriculture sector and these lands were irrigated. After the land conversion, the farmers' main source of households' income changed from farming to wages, business, or remittances. The proportion of agricultural income to total income significantly declined from 65% to 25%. Animal rearing and agricultural production have significantly declined after the ALC in the study area. The farmers' consumption of most essential commodities has decreased significantly ( p < 0.05). Furthermore, the farmers reduced expenditures on non‐food items and overall results showed that these tenant farmers/sharecroppers faced severe consequences of ALC. Crop diversification, farmers' education, experience, and agricultural labor were negatively associated with ALC. Immediate actions from the district and provincial governments are needed to safeguard these households from the adverse impacts of poverty and food insecurity. By improving access to water sources and introducing diversified and integrated farming systems, these lands can become more productive, allowing farmers to cultivate a wider range of crops and raise livestock, making the land more economically viable for continued agricultural use.