Exploring State-wise Farmer’s Income for 1-acre Cultivation


In India, the earnings created by farmers from cultivating one acre differs considerably throughout states. This variation shows the varied farming practices, crop options, and local financial conditions. By diving into state-wise information, we discover appealing patterns and insights about farm earnings per acre. This expedition not just highlights the financial elements of Indian farming however likewise clarifies the chances and difficulties dealt with by farmers in various areas.

farmer picking Corn harvest

Factors Affecting Average Farm Income Per Acre in India

The option of crop, input expenses, market value, the state of the weather condition, the accessibility of watering systems, and governmental policies are simply couple of variables that impact the typical farm earnings per acre in India. A few of these elements are gone over listed below:

Crop option is affected by different elements such as agro-climatic conditions, soil type, water accessibility, illness and insect occurrence, and other local elements. Horticultural crops, like veggies and fruits, have greater returns however likewise greater input expenses and perishability. Input expenses, such as seeds, fertilizers, pesticides, labor, and equipment, differ depending upon the type and quality of inputs utilized and the bargaining power of farmers. Greater input expenses minimize farmers’ earnings.

Market costs of farming products depend upon need and supply elements, competitors, intermediaries, and produce quality. Greater costs increase farmers’ earnings however likewise expose them to price changes and market threats. Climate condition, like rains, temperature level, and humidity, impact crop development and yield. Severe weather condition occasions can trigger crop losses, while environment modification can modify weather condition patterns.

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Farm Income Per Acre in India

Irrigation centers, such as canals, wells, tube wells, sprinklers, and drip systems, supply water to crops throughout dry durations. Still, they likewise involve expenses like setup, electrical energy, upkeep, and water charges. Overuse result in issues like waterlogging, groundwater, and salinity deficiency.

Government policies, such as minimum assistance costs (MSPs), procurement operations, aids, crop insurance coverage plans, and loan waivers, impact farmers’ earnings and well-being. These policies have constraints such as insufficient protection, execution spaces, financial restrictions, and distortionary impacts.

Comparison of Average Farm Income Per Acre in Different Indian States

State Average Farm Income per Acre (Rs)
Punjab 1.02 lakh
Haryana 0.88 lakh
Kerala 0.86 lakh
Tamil Nadu 0.77 lakh
Andhra Pradesh 0.75 lakh
Gujarat 0.74 lakh
Karnataka 0.71 lakh
Maharashtra 0.69 lakh
Telangana 0.68 lakh
West Bengal 0.66 lakh
Bihar 0.65 lakh
Uttar Pradesh 0.64 lakh
Madhya Pradesh 0.63 lakh
Rajasthan 0.62 lakh
Odisha 0.61 lakh
Assam 0.59 lakh
Jharkhand 0.58 lakh
Chhattisgarh 0.57 lakh

According to the Economic Survey 2021-22, the typical month-to-month earnings per farming family in India was Rs 10,218 in 2019, up from Rs 6,426 in 2014. This indicates a yearly earnings of Rs 1.23 lakh per family, or Rs 0.61 lakh per acre, presuming a typical holding size of 0.512 hectares (1.26 acre).

However, this earnings differs commonly throughout seasons, crops, and states. Some farmers have the ability to make as much as Rs 8-10 lakh per acre in a year by embracing ingenious practices and high-value crops. The pattern of typical farm earnings per acre in India has actually been favorable in the last couple of years, driven by greater crop production, much better costs, and diversity of earnings sources.

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Government Policies Impacting Average Farm Income

  • The Pradhan Mantri Fasal Bima Yojana offer insurance coverage for crops to farmers versus natural disasters, insects, and illness.
  • The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) supplies direct earnings assistance Rs 6,000 annually to minimal and little farmers.
  • The Minimum Support Price (MSP) ensures a minimum cost for particular crops to secure farmers from market changes.
  • The Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) intends to improve watering protection and water utilize performance.
  • The Soil Health Card Scheme supplies soil screening and nutrient management guidance to farmers.
  • The National Agriculture Market (e-NAM) assists in online trading of farming products throughout states.
  • The Agriculture Infrastructure Fund (AIF) supplies loans for producing post-harvest facilities such as freezer, storage facilities, processing systems, and so on

Challenges Faced by Farmers in Increasing Average Farm Income

  • Fragmented and little land holdings restrict the economies of scale and scope for mechanization and diversity.
  • Low adoption of enhanced seeds, fertilizers, pesticides, and watering innovations, which impact the yield and quality of crops.
  • High input expenses and low output costs squeeze the margins and success of farming.
  • Lack of access to credit, insurance coverage, markets, and extension services, which prevent the adoption of brand-new innovations and practices.
  • Climate modification, ecological deterioration increase the threats and unpredictabilities of farming.
  • Social and institutional barriers, such as caste, land, and gender period problems, impact farmers’ access to chances and resources.

Innovative Agricultural Practices for Boosting Average Farm Income

Indian farmers have actually been exploring and innovating with different farming practices to improve their typical farm earnings per acre. A few of the examples are:

  • Intercropping growing 2 or more crops together on the very same land to increase the efficiency and variety of earnings sources.
  • Zero spending plan organic farming (ZBNF) includes utilizing natural inputs such as cow dung, cow urine, jaggery, and so on, to minimize the reliance on external inputs and enhance soil health.
  • Precision farming includes utilizing sensing units, drones, satellites, and so on, to keep track of crop development and use inputs at optimum levels and timings.
  • Hydroponics, which includes growing plants in water without soil, conserves area and water and increases yield and quality.
  • Vertical farming growing plants in stacked layers inside your home or outdoors to use vertical area and minimize land usage.

These practices have actually revealed appealing lead to increasing the typical farm earnings per acre for some farmers who have actually embraced them. They likewise deal with some difficulties, such as high preliminary financial investment, technical knowledge, market linkages, and so on, which require to be resolved for broader adoption.

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Sugarcane field with plants growing

Role of Technology in Enhancing Average Farm Income

  • Improve crop efficiency and quality by supplying enhanced seeds, fertilizers, pesticides, and so on, that are matched to regional conditions and choices.
  • Reduce input expenses and waste by making it possible for effective usage of water, energy, labor, and so on, and decreasing post-harvest losses.
  • Increase market gain access to and cost discovery by linking farmers to purchasers, traders, processors, and so on, through online platforms, mobile apps, SMS, and so on
  • Enhance info and understanding sharing by supplying pertinent and prompt guidance on weather condition, crop management, finest practices, and so on, through radio, TELEVISION, web, and so on
  • Empower farmers by supplying them with information, tools, services that allow notified choices, take part in worth chains.

Technology can likewise produce brand-new chances for farmers to various earnings sources by participating in activities such as agro-tourism, agro-processing, renewable resource, and so on. Innovation can hence be a game-changer for increasing the typical farm earnings per acre for Indian farmers.

Sustainability and Average Farm Income Per Acre in India

Sustainability is an essential element of increasing the typical farm earnings per acre in India. Sustainability suggests guaranteeing that the existing generation of farmers can satisfy their requirements without jeopardizing the capability of future generations to satisfy theirs. Sustainability includes stabilizing the financial, ecological, and social measurements of farming.

  • Enhance the long-lasting practicality and durability of farming by preserving and enhancing the natural deposits, such as soil, water, biodiversity, and so on, that assistance farming.
  • Reduce the effects of farming in environment, human health by the usage of damaging chemicals, greenhouse gas emissions, water contamination, and so on
  • Improve the wellness and incomes of farmers and rural neighborhoods by guaranteeing reasonable costs, good earnings, social security, gender equality, and so on

Market Dynamics and Average Farm Income Per Acre

Market characteristics describe the forces that affect the need, supply of farming services and products. Market characteristics impact the typical farm earnings per acre by figuring out the costs and success of farming.

  • Consumer choices and habits impact the need for various kinds of items, such as cereals, fruits, veggies, dairy, meat, and so on, based upon elements such as taste, nutrition, health, benefit, and so on
  • Competition and trade policies impact the supply and accessibility of items from foreign and domestic sources based upon elements such as production expenses, quality requirements, tariffs, aids, and so on
  • Infrastructure and logistics, which impact the motion and storage of items from farm to fork, based upon elements such as roadways, trains, ports, cold chains, storage facilities, and so on
  • Technology and development impact the production and processing of items by presenting brand-new ranges, techniques, devices, and so on, that enhance yield, quality, shelf-life, and so on

Crop Diversification and its Impact on Average Farm Income

Crop diversity describes growing a range of crops on the very same piece of land or in rotation with time. Crop diversity can have a favorable influence on the typical farm earnings per acre by

  • Increasing the efficiency and success of farming by making use of the synergies and complementarities amongst various crops.
  • Reducing the danger and unpredictability of farming by spreading out the earnings over various crops that have various seasons, markets, and costs.
  • Improving the soil health and fertility by improving the raw material material, Nutrient biking, and biological activity.
  • Controlling the insects and illness by breaking their life process and lowering their host variety.
  • Meeting the varied requirements, choices of customers by supplying items that accommodate various tastes, nutrition, health, and so on

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Wheat Harvesting machine

Crop diversity can likewise have some difficulties, such as greater input expenses, technical abilities, market linkages, and so on, which require to be conquered for effective execution. Crop diversity can hence be a reliable technique for increasing the typical farm earnings per acre.

Organic Farming and its Influence usually Farm Income

Organic farming describes a system of farming that depends on natural inputs and procedures instead of artificial ones. Organic farming can affect the typical farm earnings per acre by

  • Reducing the input expenses of farming by utilizing in your area offered resources such as cow dung, garden compost, bio-fertilizers, and so on, instead of acquiring costly chemicals.
  • Increasing the output costs of farming by using the growing need for natural items that command a premium in worldwide and domestic markets.
  • Enhancing the quality and security of farming by preventing making use of damaging chemicals that pollute the soil, food, health, and water.
  • Preserving the environment and biodiversity of farming by preserving
  • the environmental balance and consistency amongst various organisms.

Government Subsidies and Grants for Improving Average Farm Income

India’s federal government uses different aids and grants to farmers to improve their earnings and income. These consist of aids for fertilizers, watering, devices, seeds, insurance coverage, power, and credit. Farm aids comprise about 2% of India’s GDP, with the overall aid to farmers representing 21% of their farm earnings. Significant plans consist of the Rashtriya Krishi Vikas Yojana (RKVY), which supplies 100% aids depending upon the job, intending to improve sustainability, efficiency, and farmer well-being.

The National Food Security Mission intends to improve pulse, wheat, and rice production by broadening growing locations, bring back soil fertility, and enhancing farmers’ financial conditions. The Sub-Mission on Agricultural Mechanization (SMAM) extends farm mechanization advantages to minimal and little farmers, specifically in areas with minimal power accessibility.

The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) supplies minimum earnings assistance of Rs 6,000 annually to around 14.5 crore farmers. The Pradhan Mantri Fasal Bima Yojana crop insurance coverage versus natural disasters, insects, and illness, covering all crops with a consistent premium rate. These plans intend to minimize unpredictabilities and threats dealt with by farmers, increasing their earnings stability and success.

Climate Change and Average Farm Income in India

Climate modification presents a significant hazard to India’s farming sector, affecting crop yields, water accessibility, insect problem, soil quality, and crop variety. Indian Council of Agricultural Research approximates that environment modification might minimize India’s farming earnings by 15-18% typically, approximately 20-25% in unirrigated locations. Environment modification effects consist of increasing temperature levels, which can minimize crop development period, boost water need, cause heat tension, and impact pollination and grain filling.

Erratic rains patterns can trigger dry spells, floods, soil salinity, disintegration, and waterlogging, while severe weather condition occasions like cyclones, hailstorms, thunderstorms, and frost can harm crops and facilities. Insect and illness break outs can likewise increase due to greater temperature levels and humidity. To handle environment modification, farmers ought to embrace climate-resilient practices such as diversifying crops and cropping systems, embracing enhanced ranges, and saving water and soil through practices like rainwater harvesting, shape, mulching, and micro-irrigation bunding.

Future Projections for Average Farm Income Per Acre in India

India, among the world’s biggest farming manufacturers, has a considerable capacity for development in the sector. The typical farm earnings per acre in India was Rs 77,124 in 2019, however this differs throughout areas, crops, and farm sizes. The federal government goes for doubling farmers’ earnings by 2022-23 through different plans and efforts. The Indian farming market is forecasted to grow at a CAGR of 4.9% in between 2024 and 2032, reaching a worth of USD 703.30 billion by 2032.

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Factors driving this development consist of increasing population, increasing non reusable earnings, altering intake patterns, technological developments, and policy assistance. Emerging patterns in the sector consist of Agriculture 4.0, which utilizes digital innovations like IoT, AI, huge information, drones, and bio-agriculture, gardening, and blockchain. The future of Indian farming deals with difficulties such as environment modification, water deficiency, land deterioration, illness and insects, and market volatility.


Farm earnings per acre in India differs considerably throughout crops and states. The typical earnings per hectare is Rs. 85,000 for all crops, however crop-specific and local distinctions impact farmers’ incomes. Some states, like Punjab, Haryana, and Kerala, have greater earnings than the nationwide average, while others, like Bihar, Uttar Pradesh, and West Bengal, have lower earnings. Some crops, like sugarcane, cotton, and fruits, yield greater returns than others. Policy interventions ought to think about these elements to enhance farmers’ earnings.


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