1. Small and Marginal Farmers Form the Majority
As of 2024–25, Marginal (less than 1 ha) and Small (1–2 ha) farmers account for 29% and 41% of all annadata households respectively, together comprising over 70% of India’s farming population. These households not only support the bulk of India’s agricultural economy but also tend to have slightly larger family sizes, which increases economic pressure and dependency ratios.

2. Financial Profile Reveals High Debt Burden for Smallholders
Despite significant contributions to national income and savings, Marginal and Small Farmers bear the brunt of total farm debt—28% and 39% respectively. While Semi-medium and Medium Farmers show better financial stability through higher surplus-to-income ratios and controlled debt levels, Landless Tenants, though vulnerable, demonstrate financial efficiency with 16% savings despite not owning land. Large Farmers, less than 1% of the population, show financial independence, holding only 1% of the total debt.

3. Non-Farm Income Critical for Landless and Marginal Groups
63% of landless farmers’ income and over half of smallholders’ income now comes from non-farm sources, reflecting growing dependence on rural diversification. In contrast, Medium and Large Farmers earn the majority of their income from farming. This underlines the need for targeted policies that expand non-farm rural employment, improve market linkages, and support income resilience for smallholders through rural infrastructure, digital access, and skill-building.