Saturday, February 23, 2019

Fragmented Land-Land Bank


Land fragmentation occurs due to split in family, selling of a part of land to another family, death of land owner, etc. Land fragmentation creates problems in different farm and other operations.
Land integration is important for
  1. Economies of scale-Horizontal growth-Mergers to facilitate different farm operations.
  2. Economies of scope-Vertical growth-Value addition/ processing/diversification. Creation of market, industry, vehicle parking, animal husbandry, etc.

A piece of land has different meaning for people in different walks of life.
  1. Land for a farmer means growing crop.
  2. Land for a potters means a source of soil, clay for making pots, bricks, etc. Similar is the value for a miner. Low lands and land with pits are suitable for water harvesting, storage, fishery, aquatic farming (e.g. prawn farming, Azolla farming), etc.
  3. Land for a builder means to construct some house, flats, etc.
  4. Land for a government means to construct, road, market, warehouse, parks, school, hospital, canal, bridge, toilets, railway, police station, Landfill, etc.
  5. Some lands are suitable for religious activity, graveyard, etc.-especially those of very small size. 
  6. Mobile Tower, Apiculture, Mushroom production, Farming for seed and/or biomass, medicine and aromatic crops, farming of livestock, etc. will increases the value of a small sized land. 
  7. Very small sized land, say one square meter can be used for putting Hand pump, Bore well, Electric pole or Pole with flag of a country. Straight tree with less canopy and branch (example Eucalyptus, Casuarina, Coconut, Arecanut, Palm, Sesbania grandiflora, AcaciaPolyalthia longifolia, Papaya, Tectona grandis, some species of bamboo, some more trees with lopping and pruning, etc.) can also fit into small area. Betel leaf shop is the best example of a business in small area.  
  8. Small piece of land: Like very small amount of curd, when mixed with milk can create larger volume of curd, similarly by buying small piece of land and waiting for some time a person can have good area of land in that region.  
  9. Operation of a big tractor in a fragmented land causes conflicts. Small power tillers and animal/human operated machines will be good.
Land Bank: Government support in land documentation, farm loans and other loan on property. Creating value for land and promoting liquidity, selling and buying of land. Land based finance are important for the economy.



Land Market Value
1) Productivity: Yield from crop, Return from business on the location
2) Size of land-Area
3) Distance from road
4) Ownership of the land
5) Conflicts on land-transgression, dispute in ownership, etc.
6) Farm fencing
7) Administrative support and laws governing the land
8) Size of roads linking the land
9) Land price is often decided through Auction on electronic platform/on-line and at trade centers. This helps in demand estimation for the land. The demand may be on rational or emotional basis. Banks often prefer this method to liquidate a confiscated land for which loan was taken and that became bad loan/Non performing asset for the bank.


Cooperative/corporate farming:

Leadership plays an important role in this. Each land should get a value. Based on the higher value, a leader for the fragmented land can be selected. The leader should try to get maximum productivity from the land piece. After realizing a return from the land, the leader should distribute the return to different share holders-manager, land owner, financier, workers, transporters, etc.
This will mitigate poverty and conflicts related to the land.




Advantage of investment in property: 

Liquidity of a land depends on location and ownership of the land. Though investment in property is not so lucrative as investment in liquid assets like Gold. But having property blesses one with gravity and offspring.
On-line facility to buy, sell a land and to pay different taxes will further increase the liquidity of a property.