Farmers hold immense economic and social significance to the Indian economy as they are the backbone of the agricultural sector (Mejia MA et al., 2022; Sruthy Madhavan, 2017; Terlau et al., 2019), contributing significantly to GDP (Narayanan, 2015; Shankar and Maraty, 2009), employment (Mahendra Dev, 2017), and food security (Ahmad et al., 2011); their role in rural development (Francis, 2015) and poverty alleviation is crucial (Swanson, 2006), as agriculture supports over half of the Indian population, promotes rural industrialization (Agarwal, 1983), sustains agro-based industries (Paramasivan and Pasupathi, 2023), and ensures social stability by maintaining traditional agrarian lifestyles and fostering community resilience against urban migration and socio-economic disparities (Wilson et al., 2018). With a paradigm shift in our economic policy toward liberalization and privatization since the early 1990s, the government is handing over more land-related projects, leading to Land Acquisition (LA).

Land Acquisition (LA) refers to the legal and administrative procedures by which a government or other authorized entity acquires land from private individuals or other entities for industrialization and urbanization (Purohit et al., 2023); although it is a necessity for infrastructure development, urban expansion, and industrial projects (Gemeda et al., 2023). According to a report by United Nations (2022), by 2050 two-thirds of the world’s population are projected to live in cities. Low and lower-middle-income nations, notably those in Asia and Africa, are likely to have the fastest rates of urbanization. While these initiatives are often seen as essential for economic growth, they have also raised concerns about the displacement of local communities, loss of agricultural land, and environmental impacts. Balancing development needs with social equity and sustainability has thus become a critical challenge in the ongoing process of land acquisition. Farmers often face numerous challenges due to land acquisition, primarily involving the loss of their livelihoods and land, displacement from ancestral land, loss of income and food, they struggle with inadequate compensation (Tuan, 2021). Inadequate compensation can also lead to social and economic instability, as displaced farmers struggle to maintain their previous standards of living, and are not satisfied (Reddy, 2018). It is needed to systematically measure, prioritize, and address agrarian distress in India’s drylands, integrating diverse dimensions like risk exposure, adaptive capacity, and socio-psychological impacts to guide actionable interventions (Reddy et al., 2021). The lack of adequate financial support can hinder their ability to invest in new agricultural practices, access resources, or secure housing in a new location.

Here, valid market valuation of agricultural land is paramount in accomplishing fair remuneration for displaced farmers, assuring they obtain a suitable ROI that reflects the real value of their farmland, thereby strengthening their economic resilience and providing sustainability (Sarkar, 2014). The Indian government has designated explicit laws for land compensation, including the: (a) Right to Fair Compensation, (b) Transparency in Land Acquisition, Rehabilitation, and Resettlement Act. These rules and regulations strive to deliver just compensation, rehabilitation, and resettlement for affected farmers (Cernea, 2008).

For displaced farmers, farmland valuation is very crucial as it provides a sense of security in the form of economic support (de Schutter, 2011). Similarly, fair compensation is one of the significant parameters providing economic strength to the displaced or land-less farmers (Nyongesa et al., 2016). Figure 1 shows the significance of compensation for displaced farmers. However, the effectiveness of the compensations often varies, as discrepancies in land valuation and compensation can lead to dissatisfaction, social unrest, and legal disputes.

The whole procedure of demarcating market value (Brinkley, 2012), nourishing fair compensation (Venteris et al., 2012), and clinging to government regulations (Li et al., 2023) is innately connected to sustainable development (Manna et al., 2021), as it encourages financial resilience (Szálteleki et al., 2024), social equity, moreover, the sustainability of agrarian conventions amidst steady industrialization and urbanization (Thornton, 2018; Zoomers et al., 2017). The shift away from agrarian land for industrial or urban purposes disrupts conventional farming methods which can jeopardize the long-term viability of agricultural communities (McCown, 2002), necessitating rightful remuneration and sustainable evolution approaches (Robèrt et al., 2002).

Resettlement and Rehabilitation for sustainable livelihood plays a significant role in improving the strength of the land-displaced farmers for facing upcoming uncertainties related to different aspects of the farming business (Azumah et al., 2023). Also, if the farmer is economically sound and has a sustainable income food, he will be in the position doing farming in such a way that it promotes SDGs. Considering the present condition of Indian farmers poverty is one of the major issues which can be addressed by making a system ensuring sustainable livelihood for the farmers (Naika et al., 2020). Moreover, this situation will further solve the issue of food security as the farmer will be in the economic condition of affording organic fertilizers and pesticides resulting in making crops, fruits, and vegetables more nutritious and safe (Schoonhoven-Speijer and Ruben, 2015). The objective of sustainable livelihood of the farmers will also solve the problem of rural migration which can act as a curse for the farming business of the Indian economy long run. Sustainable livelihood is significant for ensuring relevant disbursement of educational facilities, healthcare facilities, and other aspects related to human well-being to the biggest employment sector of the Indian economy (He and Li, 2024). By bringing economic stability in the lives of displaced farmers with the help of the integration of a sustainable livelihood system, farmers will be in the position of increasing returns group farming which will further help in the acquisition of more fertile land for the expansion of their businesses (Sun et al., 2023). This will build generational equality and bring empowerment to the lives of displaced farmers.

Farmers’ Sustainable livelihood has become a cause of concern due to the acquisition of agricultural land for industrialization and urbanization, therefore, it is important to determine the most appropriate means of compensation to safeguard their livelihoods. A well-designed R&R policy not only restores their livelihoods but also promotes the United Nations’ Sustainable Development Goals (SDGs), such as ending poverty (SDG 1), ensuring zero hunger (SDG 2), and promoting responsible consumption and production (SDG 12). Additionally, it is necessary to uncover the primary factors that determine the market value of farmland and how the demographic characteristics of farmers influence their compensation and livelihood outcomes. As it is essential for developing policies that ensure fair compensation, promote economic stability, and support sustainable agricultural practices (Kassie et al., 2017). Thus, the research was structured to address the following research questions:

The research questions aim to improve farmers’ conditions. To answer these questions, initially a literature search on the Scopus database was done. Relevant research is cited from the entire dataset to find relationships between the pertinent variables. The answer to the research questions is analyzed through a systematic review of the literature to identify and analyse factors influencing the market value of farmland, utilizing multiple sources to substantiate the hypothesized influences and through relevant statistics considered by the Indian government. Also, keyword analysis in the form of a bibliometric review was conducted to measure the weightage of the variables identified.

The present section of research dives into the related studies of literature available related to research questions. The literature review section is crucial as it provides a comprehensive overview of existing research, identifies gaps in knowledge, establishes the context and relevance of the current study, and demonstrates the researcher’s depth of understanding and engagement with the scholarly community (Rosário and Boechat, 2024). As presented in Figure 3, this research follows the guidelines provided by the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) statement, which includes four phases: identification, screening, eligibility, and inclusion (Moher et al., 2011; Page et al., 2021).

In the present section of the review, the papers identified will point out relevant research in the form of hypothesized tables, relevant statistics, variable definitions, keyword mapping diagrams, and referencing related studies with the variable. To start with hypothesized Tables 2, 3 are framed. These tables in the review paper succinctly summarize key factors, their influences, and sources, providing a clear and organized overview of relevant research findings. Concentrating on positive hypothesized characteristics entitles us to recognize and accentuate probable prospects for refinement and metamorphosis within the review coverage, helming forthcoming examination and functional applications toward required results.

The meticulously structured subheadings in Section 4 are crucial for aligning empirical rigor with the research objectives, as they provide a comprehensive framework for systematically dissecting the multi-dimensional determinants—both economic and demographic—affecting farmland valuation and compensation, thereby ensuring an exhaustive exploration of regional disparities, parameter hierarchies, and sustainable livelihood linkages that underlie the core investigative questions.

Also, the relevance of all parameters used for analysis can be assessed in Table 2.

Table 3 lists the factors influencing market value, showing that farmland characteristics were identified three times and hypothesized to have a positive influence, while farmland location and farmland amenities were each identified twice, both also hypothesized to have a positive influence.

Table 4 indicates the identified factors influencing fair compensation, showing that farmers demographic and market value were identified twice and hypothesized to have a positive influence.

The results show that learning of the significance of farmland characteristics, location, and amenities can be justified as they contribute to the agricultural property’s market value (Bergstrom and Ready, 2009). Hence, it would be right to interpret that if the farmer has the objective of getting the advantage of capital appreciation with the incremental rate, the presence of these factors becomes very relevant (Binswanger et al., 1993). On the other hand, if the farmer has the sole purpose of farming on the agricultural property and has no objective to sell it in the future, then these parameters can be ignored, and the property available at lower prices can be acquired (Poulton et al., 2010). This phenomenon is very significant, especially in countries like India, where farmers consider the land as their mother (Nandi et al., 2022). So, most of the time, it has been observed that investment in land is not to sell it in the future. However, the purpose of purchasing and selling land in the future is a significant capital appreciation. In that case, location, amenities, and certain characteristics must be assessed carefully (Brewer et al., 2013; Cornish, 1997; Ebata et al., 2017; Robertson, 1983).

A significant interplay can be marked between farmer demographics and fair compensation (Poulton et al., 2010). However, it is also heeded from the reviews that farmer compensation is influenced by the education level of the farmers, age of the farmers, household income of the farmers and household size of the farmers (Gbigbi and Ndubuokwu, 2022). Hence, if the farmer is interested in getting more compensation for the services he is delivering in the agricultural field, he has to focus on the knowledge of agriculture, experience in agriculture, past income generated with the farming practices followed based on knowledge and expertise and household size a farmer is having (Šūmane et al., 2018). The blend of these demographics can help generate more income amongst the farmer community.

A significant portion of the Indian population is dependent upon agriculture, and India’s economy cannot grow unless and until the considerable segment of the Indian economic system is earning well (Kotwal et al., 2011). Here, the discussion is about the farming community of the Indian economy, which is currently struggling with fair compensation. Granting sustainable livelihood to farmers has been the government’s objective for a long time, but somehow, the same has yet to be achieved. This goal of sustainable livelihood can be achieved by the government focusing on the implementation and execution of policies related to fair compensation, which will bring financial stability, equity in income distribution, and overall growth to the farming community (Fahad et al., 2023). The findings demonstrate the interconnected nature of land characteristics, demographic factors, and compensation outcomes; existing policies often treat these as separate domains, potentially undermining the effectiveness of sustainable agriculture initiatives. This suggests the need for more holistic policy frameworks that incorporate both traditional and emerging value determinants. Considering the discussion, an attempt in Figure 6 has been made to develop a systematic theory of change for the successful implementation of policy implications. However, despite the of the relevance present research, there are a few limitations. The analysis conducted is solely based on secondary studies which provide results based on the place of research. The results presented may not uniformly apply to all situations and population sets. The agricultural practices are diverse in discrete regions. This limits the application of results found in the present review. The current study also ignores the cultural aspects of farmers, e.g., In India especially in the northern region, the land is considered as the mother, so farmers are reluctant to sell their land irrespective of adverse economic conditions. Lastly, the cross-sectional nature of the review precludes the ability to draw causal inferences, as the observed associations between factors and outcomes do not establish temporality or causality. Future research should aim to address these limitations by incorporating a broader range of factors, utilizing primary data collection methods, and employing longitudinal designs to better understand the causal pathways and contextual variations in the determinants of market value, fair compensation, and sustainable livelihood in the agricultural sector.

The welfare of farmers has been a concern of the Indian government since independence. Achieving this goal is also relevant to the macro-level development of the Indian economy. The development of the farming community depends on various factors. However, the review conducted to answer the research questions has found that market value, fair compensation to farmers, and sustainable livelihood are the dominant forces for farmers’ economic development. If these parameters can be focused on by the policymakers of the Indian economy and the remedial actual plan for improving the financial health of the farmers can be aggressively executed, their condition will improve. The present research builds valuable insights related to the factors that need to be focused on in developing the agricultural sector of the Indian economy. Moreover, the present research builds the need to conduct an empirical analysis of the variables stressed in the current study based on a review conducted.