Land is one of the factors of production and contributes largely in housing and production of food. Changes in the use of land are necessary for the economic development and social progress though it serves as a backbone of economies largely dependent on agricultural processes for their economic and social benefits. Increase in urbanization by conversion of farmlands and forests results in reduction of land available for food and production of timber. The deteriorating quality of land resources and decreases productivity of agricultural products is the result of soil erosion, deforestation and other soil degradation activities of soils (Grimm, 2000). Urbanization results in destruction of crops and damages the equipments used for farming. It reduces the feeling of cooperation between neighbouring farmers which provided great help through their advices in production activities, sharing the irrigation techniques and equipments used for farming and even rented land with custom work benefits. As farm will be urbanized then this sharing benefits will no longer remain among farmers. Reaming farmers will not be able to take benefits of knowledge and information sharing, enjoying informal and formal relationships in their social networks. The major impact of urbanization is in the form of ‘impermanence syndrome’ which results in lack of confidence in farmers for long-run profitability and stability of farming business, thus results in reduction of potential investments in agricultural activities such as investments in adoption of improved technology and machinery for farming.