An Israeli army spokeswoman could not confirm the incident, saying only that "disturbances" had broken out on the Palestinian side of the Gaza border early on Friday, prompting Israeli soldiers to fire warning shots.
The Palestinian emergency service identified the dead man as Abdelhadi Qdeih Anwar, 21. They said he was killed in the southern Gaza Strip village of Khuzaa. Seven other Palestinians suffered gunshot wounds.
"The occupation forces opened fire on a group of farmers," Gaza emergency service spokesman Adham Abu Selmiya said.
There was no immediate reaction from the Gaza Strip's Hamas leadership, which has previously urged Palestinians to respect the ceasefire terms.
Eight days of Gaza violence, that ended with a truce agreement announced late on Wednesday, claimed the lives of 163 Palestinians and six Israelis.
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Dawn article indicates at a group of Palestinians were in the "no mans" land supposedly for the purpose of stripping parts off a disabled Israeli jeep - Israel considered them infiltrators and fired at them. Far cry from "farmers".