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For decentralization, agricultural land should be managed through the co-operative system. However, it is not wise to suddenly hand over all land to co-operative management because co-operatives evolve out of collective labour and wisdom of a community. The community must develop an integrated economic environment, common economic needs and a ready market for its co-operatively produced goods. Unless these three factors work together, an enterprise cannot be called a co-operative.
After creating a congenial environment, land will have to be handed over to co-oprative management. Then, with the help of appropriate scientific technology, it will be possible to increase agricultural production.
There should be two phase plans to introduce co-operative land management. In the first phase, all uneconomic holdings should be required to join the co-oprative system so that they will become economic holdings. In this phase, co-operatives will only consist of those people who merged their land together to make uneconomic holdings economic. Private ownership will be recognized. For instance, one person may own one acre, another two acres and third person three acres within the co-operative. Each co-operative member will be entitled to a dividend based on the total production in proportion to the land they donated to the co-operative. Each individual will retain the deed of ownership of their land, but agricultural activities will be conducted co-operatively. Consequently, land which remained utilized as boundary lines will no longer be left uncultivated. In certain places in Bihar and Bengal the total area of land is less than the amount of land wasted on boundary lines. If this system is implemented, all will benefit.
In the first phase of the plan, those owning land which is productive as an economic holding need not be persuaded to join a co-operative. But if an economic holding comprises land which is dispersed in small plots, the scattered plots should be consolidated into one holding. Alternatively, where ever small, scattered, uneconomic plots are located, they will have to be joined together under co-operative management.
In the second phase, all should be encouraged to join the co-operative system.
In the third phase there should be rational distribution of land and redetermination of ownership. In this new system two factors will determine the rational distribution of land – the minimum holding of land necessary to maintain a family, and the farmer’s capacity to utilize the land.
In the fourth phase, there will be conflict over the ownership of land. A congenial environment will exist due to psychic expansion because people will learn to think for the collective welfare rather than for their petty self- interest. Such a change will certainly not come overnight. Unless there is suitable psychic preparation through internal urge and external pressure, adjusting with the time factor, people will never accept this system, and it cannot be forcibly imposed on them.

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