Agriculture continues to serve as the backbone of India’s rural economy, with small and marginal farmers playing a pivotal role in sustaining production and rural livelihoods. In Karnataka, and particularly in Belagavi district, these farmers represent the majority of cultivators, yet they remain highly vulnerable due to fragmented landholdings, limited irrigation, rising input costs, and unstable market conditions. This study provides a comprehensive analysis of the status and challenges of small and marginal farmers in Belagavi district using secondary data from government reports, census records, and institutional surveys. The findings highlight the predominance of smallholder agriculture in Athani and Chikkodi taluks, the rising trend of institutional agricultural credit flow through commercial banks and cooperatives, and the persisting challenges of credit accessibility, indebtedness, and exposure to climate and market risks. Despite the presence of central and state-level welfare schemes, the benefits are not equitably distributed, limiting their effectiveness in addressing ground-level issues. The study underscores the need for targeted policy interventions, improved access to institutional credit, and localized support mechanisms to strengthen the livelihood security of small and marginal farmers in Belagavi and ensure inclusive agricultural growth.