In the last 10 years, there has been a noteworthy rise in both the number of families engaged in agriculture and the involvement of households led by women in this field. However, arable land across the country has decreased by 0.3 million hectares, as well as the average size of agricultural land holdings in this period.
the HRM
Although agriculture has traditionally been a mainstay of the country’s economy, there have been significant transformations in the agricultural landscape. Over the past decade, there has been a notable increase in both the number of families engaged in farming and the prevalence of female-headed households in agriculture. However, arable land in the country has decreased by 0.3 million hectares over the same period, as has the average size of agricultural landholdings.
The Agriculture Census 2021/22 published by the National Statistics Office (NSO) presents intriguing insights that could serve as a wake-up call for the government and policymakers, especially when discussions about achieving self-sufficiency in agriculture are gaining prominence.
The increased migration of rural males to work in other countries has caused females to shoulder the responsibilities related to agriculture. The census data show that the households headed by females in the country went up to 32.4 percent from 19 percent in 2011/12 over the past decade.
According to the census findings, there has been a simultaneous increase in the number of families engaged in farming, but a concerning decrease in available arable land. The census reveals that agricultural land in the country has diminished by 0.3 million hectares over the past decade. The total area of agricultural land holdings in Nepal in 2021/22 stood at 2.22 million hectares, a notable decline from the 2.52 million hectares reported in 2011/12. Conversely, the number of families participating in agriculture has risen by 0.3 million, reaching 4.13 million, up from 3.36 million in FY 2011/12.
Agriculture remains the primary source of livelihood for a significant portion of Nepal’s population, with 19.44 million Nepalis, out of a total population of 29.16 million, relying on farming. Among these individuals, 9.54 million (representing 49.1 percent) are male, and 9.90 million (50.9 percent) are female. According to the census, agricultural households make up 62 percent of the total households in the country. Notably, the average size of these farm households has decreased from 5.4 persons in 2011/12 to 4.7 persons in 2021/22.
The growing urbanization and internal migration have contributed to a greater fragmentation of arable land, subsequently causing a decrease in the typical size of agricultural land holdings. According to the census data, the average size of agricultural land holdings has decreased from 0.68 hectares to 0.55 hectares over the past decade.
Out of the entire land utilized by agricultural holdings, approximately 2.12 million hectares (accounting for 95.6 percent) are used for agricultural purposes, 80,700 hectares are covered by forests, 12,900 hectares are used for ponds, and the remaining 3,200 hectares are other lands. Notably, the forested area has expanded by 46.9 percent, and the area for ponds has increased by more than threefold in the past decade.
The majority of arable land, totaling 1.730 million hectares, is devoted to the cultivation of temporary crops, including paddy, maize, wheat, and vegetables, while 145,400 hectares are allocated to permanent crops. Over the past decade, the land used for temporary crops has diminished by 392,316 hectares, and the area for permanent crops has decreased by 23,093 hectares.
Out of the total land used for temporary crops, a substantial portion, 1.216 million hectares, is used for paddy cultivation. However, there has been a noticeable 16 percent reduction in the area allocated for paddy cultivation in the last decade. “A similar trend is also observed for maize and wheat,” reads the census report. Conversely, the census highlights a significant increase in the area devoted to vegetable farming, with the area for vegetable cultivation expanding from 84,400 hectares in 2011/12 to 107,700 hectares in 2021/22.
Despite the government and the central bank’s concerted efforts to emphasize agricultural loans and instruct banks and financial institutions (BFIs) to allocate 13 percent of their loans to the agriculture sector, there has been a decline in the number of farmers accessing such loans over the past decade. The census reveals that in 2021/22, only 12 percent of farmers obtained agricultural loans from BFIs, a notable drop from the 22 percent recorded in 2011/12. Interestingly, among these borrowers, 39 percent sourced their agricultural loans from cooperatives.
Despite the increasing adoption of modern agricultural practices such as the utilization of enhanced and hybrid seeds, chemical fertilizers, and pesticides, the census revealed that the use of local seeds remains widespread.
According to the census, the majority of paddy farmers, accounting for 56.3 percent, continue to rely on local seeds. In contrast, only 27.2 percent opt for improved seeds, while 16.5 percent choose hybrid seeds. Notably, there has been a notable increase in the adoption of hybrid seeds, rising from 5.4 percent to 16.5 percent over the past decade.
The census says that half or 47.9 percent of the farmers in the country grow vegetables. Among farmers involved in vegetable cultivation, 26.7 percent employ pesticides. Of them, 53.02 percent use slightly toxic pesticides, 33.2 percent opt for moderately toxic ones, 12.9 percent utilize highly toxic pesticides, and a minimal 0.7 percent resort to extremely toxic pesticides.
The population of livestock and poultry in the country has generally been on the rise, with the exception of cattle, buffaloes, and sheep. Thanks to the proliferation of poultry farming, chicken numbers surged from 26.26 million to 45.11 million over the past decade. The number of goats and chyangra (mountain goats) increased from 10.99 million to 14.24 million during the same period.
In the meantime, the buffalo population has decreased, dropping from 3.17 million to 2.92 million, as well as a decline in sheep numbers, which fell from 608,000 to 478,000. On the other hand, the pig population experienced an increase, rising from 818,000 to 1.35 million.
Despite the not-so-rosy picture, the census also indicates some positive developments in terms of the modernization of agriculture. Farm mechanization is on the rise in Nepal, driven by a shortage of agricultural labor that has compelled farmers to adopt modern tools. The latest census reaffirms this trend, with a significant increase in the number of farmers using tractors, which has surged to 1.63 million units in 2021/22 from 845,000 units in 2011/12. Similarly, 471,260 farmers are now employing power tillers, with 117,991 power tillers currently in operation. In contrast, the traditional use of iron ploughs has declined from 856,283 in 2011/12 to 509,825 in 2021/22.
Despite the government’s efforts to raise subsidies to farmers and expand agricultural insurance, the extent of coverage remains limited. Only 4.4 percent of farmers have insurance coverage for their farm produce. Among these insured farmers, 84 percent have coverage for livestock farming, followed by cereal crops (8 percent) and poultry farming (5 percent).
The government subsidies have also been accessed by a very small proportion of farmers in the country, with only 7.5 percent (308,512 farmers) receiving subsidies. Of these recipients, 46 percent received subsidies for chemical fertilizers, 35 percent for seeds, 15 percent for agricultural equipment, and 8 percent for agricultural infrastructure.
