Recently the issue of land acquisition and compensation payment has assumed a very serious dimension in the state of Haryana. On the basis of primary data, this study analyses the effects of land acquisition policy on farmers in Rohtak district of Haryana. The effects of land acquisition identified, included changes in income levels, land ownership structure, land utilization, farming practices, cultural and social values. In this paper quantum of land lost by the farmers, the amount of compensation paid to them, adequacy and utilization of compensation money, change in income level and living conditions has been discussed. In the light of various problems faced by the farmers and their demand of higher compensation, the Land acquisition Act 1894, Rehabilitation and Resettlement Policy 2007 and 2010 of the government of Haryana have been examined. Some suggestions are also made as to how the process can be improved in future.