A single family with a 28hp tractor cannot farm 1000 acres effectively. It's hard to find 10 families each with a 28hp tractor willing to go all-in to farm 1000 acres. And if you could, they'd get wiped out by the conglomerate that uses a stable of million dollar combines to farm 20,000 acres.
A California farmer doesn't feed a Central Valley community. An Iowa farmer doesn't feed all their townfolks. Their target market is the entire globe. Pigs to China, soy to Japan, barley to Germany, corn to Tunisia.
That said, I think you are right that there is a market for capable, compatible tractors. And also a market for 28hp tractors. In the auto world, Volkswagen and Toyota each make 11 million cars a year and even Suzuki makes 3 million. But there is still a place for Tata to make 1 million cars per year to meet a specific demand. If you are content to meet a specific need, and not driven to be top 5 or bust... If you don't even need to be top 20... There is a place where you could stay in business.