Farm size and productivity dynamics: evidence from two contrasting Indian states

The relationship between farm size and productivity has been widely studied in the context of developing economies, where agriculture serves as a vital component of rural livelihoods. Historically, the inverse farm size-productivity relationship was first observed in Russian agriculture, with explanations citing factors such as labor intensity, market imperfections, differences in land fertility, and management challenges. Nevertheless, this relationship is neither uniform across regions nor static, as it is shaped by evolving agricultural practices and regional characteristics. With this backdrop, this proposed study investigated the farm size-productivity dynamics in two agriculturally significant states of India, namely West Bengal and Punjab. This study uses the plot-level summary data from the Cost of Cultivation Scheme (2016−2017). West Bengal, with 83% of its farmers categorized as marginal, consistently demonstrates a significant inverse relationship between farm size and productivity in paddy cultivation across all six agro-climatic zones. This relationship is driven by smallholders' intensive use of labor, efficient resource management, and adaptability to local conditions. In contrast, Punjab, where only 14% of farmers are marginal, exhibits a more nuanced pattern. While Zone I shows a significant and positive relationship between farm size and the productivity of wheat, Zones II and III reveal weaker correlations, with input optimization emerging as a key determinant of productivity. The relationships declines over time as technological innovations and modern agricultural practices reshape the landscape. This study underscores the need for region-specific policies, focusing on smallholders' resilience in West Bengal and promoting balanced mechanization in Punjab, to achieve sustainable growth in productivity.