Conversion of Agricultural Land to Non-agricultural Uses in Bangladesh:Extent and Determinants

Bangladesh is a land scarce country where per capita cultivated land is only 12.5 decimals. It is claimed that every year about one per cent of farm land in the country is being converted to non-agricultural uses (such high rate of conversion will not only hamper agricultural production but will have adverse impact on food security). The present study estimates the rate of land conversion and consequent loss of agricultural production of the country besides determining the factors affecting such conversion. The study is based mainly on field survey covering 24 villages from six divisions of the country Annual Conversion of farm land is estimated to be 0.56 per cent and the country’s loss of rice production is also estimated to be between 0.86 and 1.16 per cent. The converted land is predominantly used for construction of houses, followed by roads and establishment of business enterprises. The land poor records higher rate of land conversion. The two principal determining factors for such conversion are found to be land ownership size of a household and the non-agricultural occupation of household heads. To arrest the existing rate of land conversion, the surveyed households suggest for more profitable rates of return from farming activities besides imposing special sales tax for conversion of farm land.