Productivity of land refers to extent of efficiency. The productivity of land can be expressed by following measures:

1. Average Productivity of Land:

Average productivity of land is defined as the output obtained from land divided by area of that piece of land.

2. Marginal Productivity of Land:

Marginal productivity means the increase in output obtained from land due to increase in one unit of land, but the other inputs are kept constant.

Factors Affecting Productivity of Land:

The factors affecting the productivity of land are discussed below:

1. Fertility of Land:

The productivity of land is determined by its natural qualities and its fertility. A flat and leveled land is comparatively more productive than an undulating one. The rich soil is more fertile and productive. However, the agricultural productivity can be improved by proper and extensive use of manure and fertilizers along with adoption of mechanized methods.

2. Proper Use of Land:

The productivity of ‘land’ is directly related to its proper utilization. For example, a piece of land situated in the heart of city is more suitable for construction of a house or a market place. If this piece of land is put for farming or agricultural use, its productivity will almost be negligible.

3. Location of Land:

The location of ‘land’ affects its productivity to a great extent. For example, the location of land near the market or bus station will result in economy of transportation charges and overall productivity from this point of view will naturally be higher. Similarly, for better agricultural productivity, its location near water resources is desirable.

4. Improvements done on Land by Increasing Irrigation Potential:

Permanent improvements done on land by generating artificial means of irrigation, i.e., wells, tube wells, canals, tank, etc., help to keep the water supply regular and have a positive effect on the productivity of land.

5. Ability of Organizer:

Land is a passive factor of production and so it is essential to combine it with other active factors, in correct proportion, to achieve the optimum productivity. In order to accomplish it, an able organizer is a must, who can successfully handle and combine the passive and the active factors in right proportion so as to achieve greater productivity. The competence and ability of an organizer directly affect the productivity of land.

6. Land Ownership Laws:

The ‘land ownership laws’ prevailing in a country have a significant influence on the productivity of land’. When a full ownership is conferred, the owner takes more interest in its development. For example, a cultivator possessing full ownership rights on land does more hard work and the productivity automatically improves.

But, poor farmers work as tenants on the lands of large farmers. Insecurity of tenancy rights may cause eviction of poor tenancy farmers which make them uninterested to improve land productivity.

7. Availability of Efficient Labor:

The productivity of land depends on the availability of efficient labor as land alone cannot produce anything without the efficient labor. If the labor is efficient, trained and capable to adopt modern techniques; only then he can make the proper use of land.

8. Improved Techniques of Production:

New inventions, modern and scientific methods of production like using high yielding varieties of seeds, manure, etc., have increased the productivity of land. Uses of modern machines in mining have also increased the production of various minerals in India.

9. Availability of Capital:

Capital is the fundamental factor that affects the productivity of land. The productivity of land can be maximized with the help of improved seeds, chemical fertilizers and machines. To fulfill all these requirements, sufficient capital should be available.

10. Government Policy:

The productivity of land is affected by the government policy regarding agriculture. Agricultural productivity starts increasing when the government adopts a proper agricultural policy and provides required assistance to farmers. On the other hand, the state’s negligence towards agriculture is regarded as one of the main causes of agricultural backwardness. This results in low agricultural productivity.