Land fragmentation has become a serious obstacle to agricultural production, and land transfer and consolidation are traditionally emphasized as the two most effective solutions to this quandary. To identify the extent of land fragmentation accurately and systematically, this study selected the number of plots, the average size of plots, and the average distance between plots to calculate the land fragmentation index (LFI). Taking the Wuhan metropolitan area as a case study, this study examined the effectiveness of farmer-led land transfer and consolidation on land fragmentation. The main results are as follows: (a) most of the transferred plots and contracted plots were not spatially adjacent, suggesting that the tenants could not merge and consolidate both plots; (b) land transfer caused the LFI to increase by 2.85%, suggesting that land transfer had intensified the degree of land fragmentation to some extent; (c) if the transferred and contracted plots were non-adjacent or adjacent but unmerged and unconsolidated, then the LFI might increase or decrease; (d) if the transferred and contracted plots were spatially adjacent, merged, and consolidated, then the LFI decreased significantly.