1. Introduction
Agriculture has long been the backbone of India’s economy, employing more than 50% of the population. However, small and marginal farmers—who constitute over 86% of India’s agricultural community—often struggle with financial instability, debt, and poor access to resources. To address these issues, the government has introduced targeted financial support schemes, including the ₹25,000 support scheme for farmers with less than 5 acres of land. This article provides a detailed overview of such schemes, their execution, impact, and the road ahead.
2. Understanding Smallholder Farming in India
Smallholder farmers in India typically own less than 2 hectares (approximately 5 acres) of land. Their farming activities are often dependent on seasonal rainfall, traditional methods, and limited access to credit. These constraints hinder productivity and income, leaving them vulnerable to market and climate shocks.
Key Characteristics:
- Fragmented land holdings
- Dependence on family labor
- Minimal mechanization
- Inadequate access to finance, irrigation, and insurance
3. The Need for Direct Financial Support
Direct income support is considered one of the most effective ways to assist small farmers. Unlike loan waivers or input subsidies, cash transfers empower farmers with the flexibility to use the funds as needed—for seeds, fertilizers, equipment, or even personal emergencies.
Benefits:
- Freedom of financial use
- Timely intervention (e.g., pre-Kharif sowing)
- Reduction in dependence on moneylenders
- Encourages formal banking
4. Overview of the ₹25,000 Support Scheme
The ₹25,000 support scheme is aimed specifically at farmers with up to 5 acres of land. It involves disbursing ₹5,000 per acre to eligible farmers. The scheme’s core objective is to reduce agrarian distress and ensure timely access to capital for small-scale cultivation.
Highlights:
- Maximum benefit: ₹25,000 per year
- Disbursed before Kharif season
- Direct Benefit Transfer (DBT) to farmers’ accounts
- Often paired with other schemes (like PM-KISAN)
5. Krishi Aashirwad Yojana (Jharkhand Model)
Launched by the Government of Jharkhand, the Krishi Aashirwad Yojana is one of the pioneering schemes offering ₹5,000 per acre annually, up to a maximum of ₹25,000.
Key Features:
- Target: Farmers with up to 5 acres
- Funded entirely by the state government
- 100% DBT mode of disbursement
- Beneficiaries: Over 35 lakh farmers in Jharkhand
Objectives:
- Empower smallholder farmers
- Prevent exploitation by intermediaries
- Improve agricultural productivity
6. PM-KISAN: A Nationwide Support System
The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is a central scheme launched in 2019. It provides ₹6,000 per year in three installments of ₹2,000 each to all landholding farmers.
Features:
- Universal coverage (initially limited to small and marginal farmers)
- Aadhaar-based registration
- DBT to bank accounts
- Paperless documentation through PM-KISAN portal
Complementary Nature:
Farmers in Jharkhand or other states with their own schemes can receive both state and central benefits—potentially totaling ₹31,000 annually.
7. State-Level Variants of Financial Support
Several Indian states have developed schemes similar to Krishi Aashirwad:
| State | Scheme Name | Key Benefit |
|---|---|---|
| Telangana | Rythu Bandhu | ₹5,000 per acre per season |
| Odisha | KALIA Scheme | ₹10,000 per year |
| Andhra Pradesh | YSR Rythu Bharosa | ₹13,500 annually (including PM-KISAN) |
| West Bengal | Krishak Bandhu | ₹10,000 per year (₹5,000 per season) |
These schemes are designed to reduce the burden on small farmers and ensure sustainable livelihoods.
8. Eligibility Criteria for Small Farmers
To qualify for these support schemes, farmers typically must:
- Own land up to 5 acres
- Be registered with the local agricultural department
- Have Aadhaar-linked bank account
- Not be income tax payers (in some schemes)
- Be actively involved in agriculture
Some schemes may also include tenant or sharecropper farmers.
9. Registration & Application Process
PM-KISAN:
- Visit pmkisan.gov.in
- Click on “New Farmer Registration”
- Enter Aadhaar number and validate
- Provide land records, bank details
- Submit application
Krishi Aashirwad Yojana:
- Offline registration through village-level officers
- Submission of land records
- Aadhaar and bank account linking
Many state schemes use both online and offline channels to ensure accessibility.
10. Disbursement Mechanism
These schemes follow the Direct Benefit Transfer (DBT) model to ensure transparency and eliminate middlemen. Funds are credited directly to the farmers’ bank accounts, often before the sowing season begins.
Verification Process:
- Land record authentication
- Aadhaar linking
- Mobile verification (OTP-based)
- Regular beneficiary audits
11. Impact on Farmers’ Livelihoods
Direct income support has led to notable improvements in the lives of small and marginal farmers:
- Timely purchase of seeds and fertilizers
- Better yield due to early sowing
- Reduced dependence on private moneylenders
- Increased participation of women farmers
- Enhancement of financial literacy and digital adoption
12. Economic Implications
On a macro level, such schemes:
- Increase rural spending
- Stimulate demand for agri-inputs
- Improve food security
- Generate employment in rural supply chains
Economists argue that recurring transfers act as a stabilizer for the rural economy.
13. Challenges in Implementation
Despite its success, there are several implementation challenges:
- Delay in land record digitization
- Exclusion of tenant/sharecropper farmers
- Inadequate grievance redressal systems
- Connectivity issues in remote areas
- Political misuse during elections
14. Success Stories from the Field
In Jharkhand, farmers have reported being able to sow on time, invest in new crops, and even lease more land thanks to timely disbursements. In Telangana, Rythu Bandhu has reduced farmer suicides significantly, showcasing the power of sustained financial support.
15. Comparative Analysis: India vs Global Models
Countries like Brazil (Bolsa Familia) and Kenya (GiveDirectly) have similar cash transfer models. India’s approach—particularly with Aadhaar and DBT—offers a scalable and transparent framework unmatched globally.
16. Role of Technology in Scheme Implementation
- Aadhaar Authentication
- Geo-tagging of land records
- Mobile App notifications
- Bank integration APIs
- Biometric verification at CSCs
Technology has enabled high-scale, low-leakage disbursements across millions of farmers.
17. Role of Gram Panchayats and Local Governance
Village-level functionaries help:
- Identify eligible farmers
- Maintain beneficiary records
- Facilitate grievance redressal
- Conduct awareness drives
The Panchayat’s role is critical in bridging the digital divide and ensuring last-mile delivery.
18. Criticism and Concerns
Critics argue:
- One-size-fits-all amount may not suit diverse farming needs
- Non-inclusion of tenant farmers
- Neglect of structural reforms (like irrigation, MSP)
- Overreliance on cash without improving market access
19. Recommendations for Strengthening the Scheme
- Inclusion of tenant and landless farmers
- Periodic inflation-indexing of support amount
- Better land record management
- State and center coordination for universal coverage
- Real-time grievance resolution dashboards
20. Future Roadmap and Vision
As agriculture modernizes, direct support schemes must evolve too. Future versions may:
- Use AI for crop advisory
- Integrate crop insurance and loan schemes
- Be tailored region-wise (e.g., dryland vs irrigated)
- Promote green farming via incentives
21. Conclusion
The ₹25,000 support scheme for farmers owning less than 5 acres of land marks a major shift in India’s approach to agricultural welfare. Instead of reactive relief, it promotes proactive empowerment. With improved execution and expansion, such schemes could redefine rural India’s economic landscape and secure a brighter, more stable future for its farmers.
