Kerala Just Put Rs 50 Lakh Behind Farm Tourism and Is Rewriting Its Plantation Land Rules: Why Every Farmer Should Watch Their Own Government Next
Kabeer T. was a mechanical engineer, not a farmer. In 2017 he took on 5 barren acres near Nilambur, in Kerala, and set out to make them grow.
He raised fish. But when the fry were ready, selling them at market would have meant a loss.
So he did something most farmers never think of. He cooked the fish and sold it himself, in a small restaurant shaped like a snake boat. Today the farm, known as Kathir Biodiversity Park, also has pedal boats and coracles, and schoolchildren visit regularly. Kerala's own Responsible Tourism Mission tells his story as a success. The farm was hit by the floods of 2018 and 2019 and then COVID, and is now being rebuilt.
Kabeer had some help from his local farm office and the fisheries department. Now the Kerala government is starting to put money specifically behind farm tourism.
The Short Answer Kerala, India has set aside Rs 50 lakh (about US$52,700) in its 2026-27 budget for a scheme called "Promotion of Farm Tourism". It is run by the state Agriculture Department. In October 2026 the state also began reviewing its farm policy, including rules that limit what plantations can do with their land. The money is small. The rule change could be huge. And Kerala is part of a wave: Japan, the Philippines, Malaysia, Taiwan, Indonesia and Vietnam all have government programmes that help farms welcome visitors. If you farm, your own government may be next, and the farmers who are ready first get the money first. |
What Kerala Actually Announced (and What It Didn't)
There are three separate moves. News reports tend to blur them together, so here they are one by one.
Move No. 1: Rs 50 lakh for farm tourism
Kerala's revised 2026-27 plan budget, tabled in June 2026, includes a scheme called "Promotion of Farm Tourism". It sits under the Agriculture Development and Farmers' Welfare Department, not the Tourism Department. That matters: the state is treating farm tourism as farm income, not just as tourism.
The whole line is Rs 50 lakh, all from the state, with no central share. At about 95 rupees to the US dollar, that is roughly US$52,700.
The budget document lists only the scheme's name. It does not say who can apply, what the money pays for, or whether it goes to farms, training or marketing.
Reality Check Rs 50 lakh across a whole state is a small pot. If it were split into grants of Rs 1 lakh each, only 50 farms would get one. Do not plan your farm around this money. Plan your farm so you are first in line when the details come out, and for the bigger schemes that usually follow a small pilot. |
Move No. 2: The farm policy review
In mid-October 2026, Agriculture Minister T. Siddique said Kerala is looking at updating its agriculture policy. The policy was first written in 1992 and last revised in 2015.
The review covers climate change, crop diversification and better markets. It also looks at changing land-use rules so that plantations can grow other crops and run agri-based businesses, farm tourism included.
In the same set of priorities, the state listed other help: micro-irrigation subsidies of up to 55% for small and marginal farmers, agri clubs in 500 schools, and a planned carbon cell to help farmers earn carbon credits.
Move No. 3: The tourism budget points the same way
In June 2026, Chief Minister and Finance Minister V. D. Satheesan presented the revised state budget with Rs 325.36 crore for tourism. He named farm tourism, agri-tourism and "rural experiential tourism" as areas for greater focus.
He also said existing laws would be amended so that more plantation land can be used for tourism. The head of the Kerala Travel Mart Society said this could open new investment in plantation tourism on tea, coffee and cardamom estates.
Why Kerala Is Doing This Now
Governments don't fund farm tourism because it is pretty. They fund it because farm income is hurting.
Kerala's farms are tiny. The average operational holding was just 0.18 hectares in 2015-16, just under half an acre. Almost all holdings are marginal or small.
Plantation crops have been squeezed too. Plantations cover about one-fifth of Kerala's cultivable land. ThePrint reported that plantation revenue fell from Rs 21,000 crore in 2011-12 to about Rs 8,000 crore in 2018-19.
Even the good years don't last. Raw coconut hit an all-time high of Rs 78 a kilo in 2025, then fell to Rs 55 by January 2026 as harvests recovered and imports came in. Rubber growers face rising costs. In July 2026 the state raised its rubber support price from Rs 200 to Rs 250 a kilo, citing a sharp rise in production costs.
Then there is the weather. Between 2021 and 2025-26, floods hit 20,344 farmers in Kerala.
If this sounds familiar, it should. Low prices, rising costs and wild weather are the same squeeze I wrote about in Crop Prices Falling? How Farms Are Using Agritourism to Fill the Gap. A visitor pays the same whether coconut sells for Rs 78 or Rs 55.
The 5% Rule: The Real Prize for Plantation Owners
To see why the land-use review matters more than the Rs 50 lakh, you need one piece of history.
Kerala's Land Reforms Act of 1963 caps how much land one person can hold. Plantations were left out of that cap, because estates need scale. The catch: if you use plantation land for something else, you risk losing the exemption.
An amendment passed by the Assembly in 2005, which became law around 2012, allowed up to 5% of plantation land to be used for tourism and other purposes. Today, under Section 81(4) of the Act, that 5% can go to floriculture, medicinal plants, dairy, tourism and similar uses.
In September 2026, Onmanorama reported that an expert panel led by former Land Revenue Commissioner A. T. James will review proposals for wider use. IIM Kozhikode has suggested allowing more long-life and fruit crops and redefining what a "plantation" is. The Revenue Minister has said amendments will go to the Assembly after the panel reports.
For a tea, coffee or cardamom estate, that is the real opportunity. A farm stay, a tasting room or a guided walk needs land and buildings. A rule that lets you use them can be worth far more than any small grant.
Reality Check The 5% rule was controversial when it became law. Many estates border forests and wildlife areas, and critics, including V. D. Satheesan when he was an MLA, warned about that. Any new rules may come with strict conditions on buildings, forest buffers and approvals. Wait for the final text before you build anything. |
Kerala Already Has a Farm Tourism Network. Most Farms Haven't Used It.
The Rs 50 lakh isn't Kerala's first move. In September 2021 the Tourism Minister launched the Kerala Agri Tourism Network under the Responsible Tourism Mission. Its goal was 500 farm tourism units and 5,000 homestay farms by March 2023.
The network fell well short. A July 2025 trade report counted 983 people trained, 454 registered units, and about 103 described as active and successful. When I checked the official directory in October 2026, it listed 104 farm units. Kozhikode had the most, with 26.
That gap is your opening. Kerala received a record 2.22 crore tourists in 2024, about 22 million tourist arrivals. If only around a hundred farms are actively on the state's own farm-tourism list, a farm that gets organised now is not joining a crowded market.
Field-Tested Play: Get on the Official List First When a government starts a scheme, the first people it calls are the ones already on its lists. In Kerala that means the Agri Tourism Network units page and Responsible Tourism Mission registration. In your country it might be a tourism board directory or an agriculture department register. Being listed costs little and puts you in front of the officers who will hand out the next round of money. |
What Kerala Farm Stays Actually Charge
Here are real, published prices for Kerala farm and plantation stays:
Kerala farm or package | What it is | Published price |
Philipkutty's Farm, Kumarakom | 45-acre island farm (mango, nutmeg, pepper, cocoa), 7 waterfront cottages | From £315 a night, all meals included (i-escape) |
Tranquil Resort, Wayanad | 400-acre working coffee estate, 126 years old | About Rs 10,500 a night plus taxes (Outlook Traveller, 2026) |
The Old Cattle Shed, Wayanad | 25-acre plantation stay | About Rs 16,500 a night (Outlook Traveller, 2026) |
Kumarakom and Aymanam rural packages (Responsible Tourism Mission) | Village and farm tourism packages | Rs 650 to Rs 1,000 per person for groups of 3 or more (2022) |
Philipkutty's Farm began as land a grandfather reclaimed from Vembanad Lake in the 1950s. Several generations of the Mathew family still run it and charge international prices for the experience.
Notice the spread. A village package costs under Rs 1,000 per person; a plantation stay costs ten thousand rupees or more a night. The land is often similar. The difference is the story, the stay and the packaging. If you have ever wondered whether you are charging too little, read Why Most Farm Stays Are Undercharging.
Kerala Is Part of an Asian Wave
Kerala is late to this, not early. Across Asia, governments are paying farms to welcome visitors because it keeps rural families on the land.
Country | What the government does | The numbers |
Japan | Nouhaku farm-stay programme; renovation subsidies usually cover half the cost | 656 regions; 7.94 million overnight stays in FY2023 (MAFF) |
Philippines | Farm Tourism Development Act (2016); new 2026-2031 action plan | 138 accredited farm tourism sites as of Feb 2026 |
Malaysia | Agriculture Ministry agrotourism grant up to RM200,000 (with MARDI support); MOTAC homestay programme | Homestays earned RM62.4 million from 977,666 tourists in 2025 |
Taiwan | Licensed leisure farm system | 486 licensed leisure farms (2020); leisure agriculture produced NT$10.9 billion in 2019 |
Indonesia | Desa wisata (tourism village) programme | 4,573 registered tourism villages in 2023 |
Vietnam | Rural Tourism Development Programme 2021-2025 | Target: at least 1 recognised rural destination per province |
Maharashtra, India | Agri Tourism Policy 2020: capital incentives, power at domestic rates | About 2,800 registered centres in 2026 |
Japan shows what happens when a government sticks with it.
Japan's farm ministry puts the average nouhaku lodging price at ¥12,904 per person a night, plus ¥3,425 for an experience. If you want to see what that looks like on the ground, read my post on the Japanese "Harvest Your Dinner" farm stay package. Government money can also bring new rules and costs, as Japan's farm stays found out with the Nasu lodging tax.
Closer to Kerala, Maharashtra is the model Indian farmers watch. Agritourism pioneer Pandurang Taware says Rs 60 to Rs 70 of every Rs 100 a tourist spends there stays with the farmer. One couple, Kiran and Pratibha Sanap, now earn about three-quarters of their income from agritourism on 21 acres. Chinchani village in Solapur has drawn more than 25,000 tourists and turned over more than Rs 1 crore.
Not every story ends well. The same report described a farmer near Washim who hasn't broken even and was hit with a Rs 7.5 lakh power bill. Government support helps, but it doesn't replace a plan. For more on India, see The Importance of Agritourism in India and Top Places for Agritourism in India.
Malaysia's version is close to home for me, and I covered it in Malaysia Just Put 66 Farms and Orchards on Its Official Tourism Menu. For the region as a whole, start with Agritourism in South East Asia.
How to Catch a Government Scheme Before Your Neighbours Do
Most farmers hear about a scheme when it's already full. Here is how to be early.
Field-Tested Play: Read the Budget, Not Just the News The Rs 50 lakh line was in Kerala's budget in June. Most news coverage came in October. Budget documents are public and searchable. Search your state or national budget for words like "farm tourism", "agri-tourism", "agrotourism", "rural tourism" and "homestay" once a year. You will often see a scheme months before your neighbours read about it. |
Field-Tested Play: Write the One-Page Plan Before the Scheme Opens When an application window opens, it is often short. The farmer who already has a one-page plan (what visitors will do, the price, how many guests a week, what it will cost to start) can apply in days. Use my free agritourism business plan template to get it done in an afternoon. |
Field-Tested Play: Count Every Visitor From Day One Governments renew the schemes that can show results. Keep a simple record: date, number of visitors, where they came from and what they paid. Kerala's Agri Tourism Network reports how many units are "active and successful". A farm with numbers looks like a safe bet for the next grant. |
The Paperwork Questions to Ask Before You Spend a Rupee
I'm not a lawyer and this isn't legal advice. These are the questions I'd want answered in writing before opening a farm to visitors anywhere, Kerala included:
Is my land allowed to host visitors? Plantation land in Kerala has its own rules (see the 5% rule above). Elsewhere, check zoning. Weddings and events catch many farms out, as the Ohio wedding barn fights showed.
Do I need a homestay licence? Kerala Tourism classifies homestays as Diamond, Gold or Silver. The guidelines allow a maximum of 6 rooms, require the owner's family to live in the house, and charge an application fee of Rs 3,750 for a 3-year classification.
Can I sell food? Cooking for guests usually brings food safety rules. Kabeer's move from raising fish to cooking it is exactly where those rules start. Read Selling Food on Your Farm: Permits before you plan a farm lunch.
Am I insured for visitors? A crop policy rarely covers a guest who slips on your path. Ask your insurer in writing whether paying visitors are covered. My guide Agritourism Insurance: What It Covers, What It Costs lists the questions.
What strings come with the money? Government grants can require matching funds, reports and minimum years of operation. Ask before you sign.
For the full checklist, see Legal Essentials for Starting an Agritourism Business.
What My Own Durian Farm Taught Me About Not Waiting
I run Bloopy Durians, a durian farm in Bentong, Malaysia. Our durian seasons are short, about 4 to 5 months a year in total: December to February and June to August. When the trees aren't fruiting, the farm still has to pay its way.
I didn't wait for a government grant. We built a farm people wanted to visit and got found on Google, and now we welcome up to 100 visitors a week during durian season. We also built a WhatsApp list of loyal customers who buy whenever durians are ready. That list is one of the most reliable incomes the farm has.
Malaysia does have support, such as the Agriculture Ministry's agrotourism grant, with help from MARDI. But the lesson I'd pass to any Kerala farmer is this: build the visitor business first, then use government money to grow it. A grant is much easier to win when you can already show the guests.
If You Farm Outside Asia
The pattern is the same everywhere. A government sees farm income falling, sees tourists who want real experiences, and puts money in the gap.
In the United States, I've covered the agritourism grants and funding still open in 2026, the USDA Value-Added Producer Grant and Airbnb's Farm to Stay grant. In Europe, Italy shows how far it can go: 33 million agritourism guests.
The questions are the same in Kerala, Kansas or Kent. Who is funding farm visits near you? And will you be ready when they do?
Frequently Asked Questions
How much has Kerala set aside for farm tourism?
Kerala's revised 2026-27 plan budget includes Rs 50 lakh (about US$52,700) for a scheme called "Promotion of Farm Tourism", run by the Agriculture Development and Farmers' Welfare Department.
Can individual farmers apply for Kerala's farm tourism money?
The budget document gives only the scheme name. As of October 2026, no published guidelines say who can apply or what the money will pay for. Watch the state Agriculture Department and your local Krishi Bhavan for details.
Can a Kerala plantation run a farm stay or tourism business?
Under Section 81(4) of the Kerala Land Reforms Act, up to 5% of plantation land can be used for uses such as tourism, floriculture, medicinal plants and dairy. An expert panel is reviewing proposals for wider use of plantation land, and the state budget promised law changes to allow more plantation land for tourism. Any changes must pass the Assembly.
What is the Kerala Agri Tourism Network?
A Responsible Tourism Mission programme launched in September 2021 to train farmers and list farm tourism units, farm stays and farm products. Its official directory listed 104 farm units in October 2026.
How much do Kerala farm stays charge?
Published prices range from Rs 650 to Rs 1,000 per person for Kumarakom and Aymanam rural packages (Responsible Tourism Mission) up to about Rs 10,500 to Rs 16,500 a night for Wayanad plantation stays, and from £315 a night for Philipkutty's Farm with meals.
Which other Asian countries fund agritourism?
Japan (nouhaku farm stays), the Philippines (Farm Tourism Development Act), Malaysia (Agriculture Ministry agrotourism grant, MOTAC homestays), Taiwan (leisure farms), Indonesia (tourism villages) and Vietnam (rural tourism programme) all support farms that welcome visitors. In India, Maharashtra has had an Agri Tourism Policy since 2020.
Should I wait for a grant before starting agritourism?
No. Start small and keep records. Grants are easier to win, and safer to spend, when you can already show visitors, prices and results.
Your Next Step
Kerala's farmers are about to find out who was ready and who wasn't. The same goes for you, wherever you farm.
Find out how ready your farm is in 3 minutes:
Then get the step-by-step checklist I wish I'd had when I started:
P.S. Kabeer T. didn't have a dedicated farm-tourism scheme, a tourism degree or a famous estate. He had 5 acres, fish that wouldn't pay at market, and the idea of letting people come to him. Kerala is now putting money behind that idea. Whether your government follows or not, the first step is the same: open the gate.
Stephen Loke of AgritourismSuccess.com, whose farm is featured in Bloomberg News and Asahi Shimbun. This article is for general information and is not legal, tax or financial advice. Scheme details change; check with your local agriculture and tourism offices before applying.
Sources
Government of Kerala, Revised Summary Document 2026-27 (Promotion of Farm Tourism, AGR 249)
UNI India: Kerala mulls revision of 2015 agricultural policy (18 Oct 2026)
Urban Acres: Kerala Agriculture Policy Takes Aim at Climate Risk and Farm Losses (17 Oct 2026)
News Arena India: Kerala earmarks Rs 325 crore for tourism (19 Jun 2026)
Travel Trade Journal: Kerala revised 2026-27 budget for tourism
Onmanorama: Kerala plans wider use of plantation land (28 Sep 2026)
ThePrint: Why Kerala is planning to allow its plantations to grow exotic fruits
Abraham and Pradeep Kumar, MPRA Paper 108759: Kerala agriculture holdings
Onmanorama: Kerala Agri Tourism Network launched (14 Sep 2021)
Travel And Tour World: Kerala agri-tourism progress (14 Jul 2025)
Onmanorama: Responsible Tourism rural packages (28 Nov 2022)
Outlook Traveller: Where to stay in Wayanad for coffee estate experiences (2026)
Free Press Journal: Maharashtra's agritourism boom (15 Aug 2026)
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