I think for the question in red, there is nothing can truly which compensate the farmers apart from giving some percentage more than the existing market value (not book value).
And the last point should be made compulsorily moot. However, the govt, may try to provide means of livelihood to those farmers in the SEZ or whatever it is planning by providing them jobs as per their eligibility and train them if necessary. After all done and dusted, whatever the govt is planning on converting agricultural land to, should not be at the cost of the farmers bread and butter.
That said, IMHO that the govt should refrain from converting agricultural land as it might have a negative affect on the entire food production life cycle and will even affect the ecology.
Nothing is life can ever be compensated, be it money or otherwise, be it monetary compensation in the event of death in service of the country, train accident, road accident, air accident etc etc. Therefore, there is nothing that can equate as 'fair' compensation since there is no formula to equate death with money. Likewise, there is no formula per se to equate earth (land) with money. Whatever be the compensation is only perceptions based on man made deductions as to what is 'fair'.
I don't have the latest Census on farmers, but the census of 2001 indicates that of the 120 million farmers, there are 90 million who are marginal farmers in India. That in percentage is 80%.
These small holding are a challenge to the Farmers since most depend on the monsoons for irrigation and cultivation. Even areas where there is irrigation, the vagaries of nature hits them hard as is that happened with the unseasonal rain as it has happened now, forcing Sonia Gandhi, in a new avatar of Gandhi, to take her out of a Dandi March of sorts to Rajasthan and elsewhere.
Then there are unseasonal droughts and the El Nino Factor that leads to food shortages.
Therefore, it becomes essential to have good Land Management. Apart from other factors, water is one of the major inputs. That is feasible through irrigation and exploitation of ground waters. However, we have seen that over utilisation of ground waters without rain water harvesting leads to dropping of the ground water levels and thus poor yields. Punjab, once known as the 'granary of India' is a good example of over utilisation.
Or one can go for Collectivisation as was done in USSR and China, which have proved a failure since everyone's property is nobody's responsibility.
Thus the sole option remains irrigation and good rain water harvesting. Irrigation requires land to build dams, check dams, canals, distributories et al. Obviously, it, especially the canals and check dams, have to be near farm lands and hence land has to be given by the farmers, unless of course, someone tell of a better option.
Then there is a requirement to connect the farm to the markets. That requires all weather roads and highways. From where will that land come for the same? For land, maybe that of farmers,
panchayat land or State land.
Then there is the issue of poverty and unemployment. If there are no jobs, skilled or unskilled, how can poverty be eliminated? The only way to do it is through factories, small and big. But it requires land. From where will that come?
Skill Development? That requires facilities where skills can be taught. From where will that come?
Therefore, a Bill to Acquiring Land with 'fair compensation' is essential.
However, to expect 80% to agree to hand over the land is a bit too optimistic to expect. Apart from genuine reasons, politics will play a role to abort it.
What better example can be Nandigram and Singur in West Bengal?
Who lost?
It can never be achieved.
If we are to progress and develop, we must think rationally and not with populist emotions that are exploited by political forces, the leaders of such forces care very little since they have already feathered their nest and are keen to remain relevant so that one day when they come to power by shedding crocodile tears for the 'poor' and the 'deprived' can go into another frenzy to feather their nests further and laugh all the way to their Swiss or other tax haven banks under assumed names and front organisations.
As far as food production is concerned, modern methods of farming has to be implemented with superior seeds and constant advice of scientists. It worked for the Green Revolution in India. Much water has flowed under the bridge since then, and have not been adopted.
In Bengal for instance, there is glut in potato production and leading to suicide. It indicates poor approach to agriculture planning. However, the State and the Central Govt are organising its export to Russia, where potato is their staple. Always waking up late till the crisis hits one.