In a village watershed, most of the farmers have land holdings that are:-
- Scattered and
With small land holdings, it is quite difficult to achieve economies of scale. The farmers cannot think for agribusiness with small holdings .Bulk production of agriculture produce is prerequisite for profitable agribusiness .So, the farmers have to work in clusters and has to grow similar type of crops to get better returns.
Further the scattered land holdings acts as a barrier in having a bulk harvested produce at a single place for profitable agribusiness.
The undulating/ slopy land prevents the farmers from use of effective farm mechanization. The farmers has to rely on manual labours . It is difficult from them to get labours . Further manual labour becomes costly.