Tenant Farmers Eligible for Fasal Bima with Landowner Consent: Government

In a move set to benefit millions of cultivators without formal land titles, the government has announced that tenant and share-cropper farmers can now access flagship agricultural schemes like the Pradhan Mantri Fasal Bima Yojana (PMFBY) and Minimum Support Price (MSP) procurement—if authorised by the landowning farmer. This marks a key policy shift aimed at bridging long-standing exclusions within the country’s agricultural safety net.

Policy Shift to Include Tenant Farmers in Key Schemes

In a significant policy update, the Union government announced that tenant farmers can now access the benefits of the Pradhan Mantri Fasal Bima Yojana (PMFBY), provided they are authorised by the landowning farmer. Agriculture Minister Shivraj Singh Chouhan shared the development in the Lok Sabha on Tuesday, signalling a progressive move to make major agricultural schemes more inclusive.

Chouhan added that crops grown by tenant farmers will also be eligible for procurement at Minimum Support Price (MSP), again contingent on the landowner’s authorisation and with the permission of the respective state government. Previously, tenant and share-cropper farmers were often excluded from fully availing these benefits due to a lack of land ownership, an issue now being actively addressed by the government.

Widening Access and Historical Context

According to the National Statistical Office’s (NSO) Situation Assessment of Agricultural Households survey (2018–19), 17.3 per cent of the 101.98 million operational agricultural holdings in rural India were on leased land. These leased-in lands made up around 13% of the total agricultural production area. In earlier NSO surveys, leased-in holdings stood at 11.3% and 6.5% respectively, though experts argue these figures are under-reported due to the prevalence of informal and oral tenancy arrangements.

Chouhan also announced that tenant farmers and share-croppers are now allowed to become members of Farmer Producer Organisations (FPOs), expanding their access to formal structures and support. He stated that over 6,50,000 tenant farmers had benefited from PMFBY in recent months, and around 4.2 million share-croppers had received the benefit of MSP procurement.

Reforms, Achievements and Budgetary Concerns 

Highlighting recent reforms, Chouhan asserted that several government initiatives had helped double the incomes of many farmers. A record level of procurement had been made at MSP rates, fertilisers had been made available at subsidised prices, and insurance claims worth ₹1.83 trillion had been settled.

Meanwhile, a parliamentary standing committee attached to the Department of Consumer Affairs raised concerns over the inadequate budget allocation for the Price Stabilisation Fund (PSF). The committee stressed the need for a comprehensive and data-driven needs assessment, taking into account population size, price volatility, and the effectiveness of stabilisation tools currently in place.

Also Read: Ladki Bahin Scheme: Maharashtra Govt Removes Over 26 Lakh Ineligible Beneficiaries

Conclusion

The government’s move to extend Fasal Bima and MSP access to tenant farmers with landowner consent marks a pivotal policy shift towards inclusivity. With further reforms and growing coverage, the agricultural support framework is being reshaped to better reflect the realities on the ground.

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