Farmers perspectives on farmland sales: Navigating sentiments across the rural-urban continuum of Eastern dry zone of Karnataka

Abstract

As rural communities increasingly face pressures from urban expansion, industrialization, financial necessity, socio-economic obligations and shifting agricultural policies, the sale of farmland becomes a contentious and multifaceted issue. On this context, the present was carried out to explores the dynamics of farmland sales, management of proceeds from such transactions and emotional responses of farmers after sale of farmlands across rural-urban continuum. The research found that the land values in BTHL increased from ?0.23 to ?12.57 lakhs/acre from 2000 to 2020, with a CAGR of 22.14 percent primarily driven by infrastructure developments like establishment of MNCs, road connectivity projects, railway connectivity, airport connectivity and many other corporate development projects. Wherein CTUP witnessed an even steeper rise, from ?2.05 to ?63.91 lakhs/acre (CAGR 18.76%), fuelled by its strategic proximity to urban centres and critical infrastructure projects/facilities. Further, farmland transactions in 2019 &2020 revealed significant contrasts: BTHL averaged transactional value is ?12.57 lakhs/acre across 88.96 acres, while in CTUP ?63.91 lakhs/acre for 42.17 acres. Furthermore, portfolio analysis of land sale proceeds showed differing socio-economic priorities. In BTHL, 80.59 percent was allocated to asset-based investments, with a focus on debt repayment (29.44%) and agriculture (21.71%). While in CTUP, 72.56 percent is marked for asset-based investments like housing and real estate. In case of non-asset spending, BTHL emphasised more on social ceremonies and education, while CTUP showed higher allocations for conspicuous consumption and bequeathing to girl children. Whereas, sentiment analysis uncovered predominantly negative perceptions in both regions, reflecting concerns over lost livelihoods and uncertain futures. Negative sentiments were higher in CTUP (43.47%) than in BTHL (37.5%), likely due to the rapid urbanization and forced land sales. However, a minority expressed positive sentiments, citing opportunities for reinvestment and financial stability. These findings underscore the socio-economic and emotional complexity of farmland sales, driven by urbanization and market dynamics. The findings of the study highlight the need for balanced policies to address the challenges of land use transitions while supporting farmers' aspirations and livelihoods.