We already played cowboys and Indians...
Within a few years these parcels would be back in the hands of large operators. The maximum size parcel under this program is 160 acres. That is a garden, not a farm. Equipment is expensive and needs to be used over very large tracts. Also, the government would have to coerce land owners to sell prime land. The stuff farmers would be willing to sell would be hilly, rocky, arid, inaccessible land.
Favorite crops might be needles, crack, hos, garbage