How access to non‐farm income affects farm investment in rural India?

2021 ◽  
Author(s):  
Zeeshan ◽  
Mohd Arshad Khan ◽  
Md Riyazuddin Khan ◽  
Neena Pandey ◽  
Isha Kaushik ◽  
...  
Keyword(s):  
Rural India ◽  
Farm Income ◽  
Farm Investment

scholarly journals Off-farm Income, Credit Constraints, and Farm Investment

2020 ◽  
Vol 52 (4) ◽  
pp. 642-663
Author(s):  
Nigel Key
Keyword(s):  
Household Income ◽  
Credit Constraints ◽  
Limited Resource ◽  
Capital Expenditures ◽  
Farm Income ◽  
Farm Labor ◽  
Federal Programs ◽  
Net Worth ◽  
Access To Credit ◽  
Farm Investment

AbstractMany farmers face borrowing limits that depend on their household income and net worth. Given such credit constraints, an increase in off-farm income should allow farmers to borrow more, thus influencing production decisions and productivity. To test this hypothesis, the education level of the farm operator’s spouse is used to identify exogenous variation in off-farm income. Findings indicate that higher off-farm income leads to more borrowing, capital expenditures, capital input intensity, farm labor use, output, farm income, and productivity. Results suggest that Federal programs that promote access to credit for limited-resource farmers may increase farm investment and productivity.

scholarly journals Way Down in the Hole: Adaptation to Long-Term Water Loss in Rural India

2020 ◽  
Vol 110 (1) ◽  
pp. 200-224 ◽  
Author(s):  
David Blakeslee ◽  
Ram Fishman ◽  
Veena Srinivasan
Keyword(s):  
Water Loss ◽  
Manufacturing Sector ◽  
Rural Poverty ◽  
Rural India ◽  
Farm Income ◽  
Labor Reallocation ◽  
Agricultural Growth ◽  
Agricultural Adaptation ◽  
Drying Up

Worsening environmental conditions threaten to undermine progress in reducing rural poverty. Little is known, however, about the prospects for farmer adaptations to mitigate this threat, in particular through opportunities for income diversification presented by recent non-agricultural growth. We study the effects of increasing water scarcity in India using quasi-random, geologically determined differences in access to groundwater. The drying up of wells results in a precipitous and persistent decline in farm income and wealth, with little evidence of agricultural adaptation. However, labor reallocation to off-farm employment appears successful in maintaining overall income, particularly in locations with a more developed manufacturing sector. (JEL O13, O18, Q12, Q15, Q18, Q25, Q28)

scholarly journals The Effects of Non-Farm Enterprises on Farm Households’ Income and Consumption Expenditure in Rural India

2019 ◽  
Vol 19 (1) ◽  
pp. 195
Author(s):  
. Zeeshan ◽  
Geetilaxmi Mohapatra ◽  
Arun Kumar Giri
Keyword(s):  
Propensity Score ◽  
Farm Households ◽  
Rural India ◽  
Farm Income ◽  
Consumption Expenditure ◽  
Income Diversification ◽  
Probit Models ◽  
Structural Differences ◽  
Nationally Representative ◽  
On Farm

Nationally representative data of farm households from India Human Development Surveys (IHDS) conducted in 2004-05 and 2011-12 are explored. This article analyzes the effects of income diversification in non-farm enterprises on farm households’ income and consumption expenditure in rural India. Panel probit models were built to examine the determinants of income diversification while propensity score matching was used to account selection bias resulting from unobserved factors and controls for structural differences between diversified and undiversified farm households. The results suggest that by engaging in non-farm enterprises, rural farm households make positive gains in farm income and consumption expenditure.

Differences across farm typologies in capital investment during 1996-2013

2018 ◽  
Vol 78 (1) ◽  
pp. 41-64 ◽  
Author(s):  
Sarah Anne Stutzman
Keyword(s):  
Tax Policy ◽  
Capital Investment ◽  
Economic Conditions ◽  
Farm Income ◽  
Content Type ◽  
Income Levels ◽  
Livestock Farm ◽  
Farm Investment ◽  
Pseudo Panel ◽  
Tax Depreciation

Purpose The purpose of this paper is to examine the impact of changes in farm economic conditions and macroeconomic trends on US farm capital expenditures between 1996 and 2013. Design/methodology/approach A synthetic panel is constructed from Agricultural Resource Management Survey (ARMS) data. A dynamic system GMM regression model is estimated for farms as a whole and separately within farm typology categories. The use of farm typologies allows for comparison of the relative magnitudes of these estimates across farms by farm sales level and the operator’s primary occupation. Findings Changes in gross farm income levels, tax depreciation rates, and interest rates have a significant impact on crop farm investment, while changes in output prices, net cash farm income levels, tax depreciation rates, and farm specialization levels have significant impacts on livestock farm capital investment. The relative significance and magnitudes of these impacts differ within farm typologies. Significant differences include a greater responsiveness to change in tax policy variables for residential crop farms, greater responsiveness to changes in output prices and debt to asset ratios for intermediate livestock farms, and larger changes in commercial crop and livestock farm investment given equivalent changes in farm sales or the returns to investment. Research limitations/implications These findings are of interest to agricultural economists when constructing farm investment models and employing pseudo panel methods, to those in the agricultural equipment and manufacturing sector when constructing models to manage inventories and plan for production needs across regions and over time, to those involved in drafting tax policy and evaluating the potential impacts of tax changes on agricultural investment, and for those in the agricultural lending sector when designing and executing agricultural capital lending programs. Originality/value This study uniquely identifies differences in the level of investment and the magnitude of investment responsiveness to changes in farm economic conditions and macroeconomic trends given differences in income levels and primary operator occupation. In addition, this study is one of the few which utilizes ARMS data to study farm capital investment. Utilizing ARMS data provides a rich panel data set, covering producers across many different crop production types and regions. Finally, employing pseudo panel construction methods contributes to efforts to effectively employ cross-sectional data and dynamic models to study farm behavior across time.

Anatomy for economy: Starting from the rumen keratinization degree to enhance the farm income

2018 ◽  
pp. 261-272 ◽  
Author(s):  
Paola Scocco ◽  
Sergio Rivaroli ◽  
Francesca Mercati ◽  
Federico M. Tardella ◽  
Alessandro Malfatti ◽  
...  
Keyword(s):  
Farm Income

Rural Industrialization in Korea: Policy Program, Performance and Rural Entrepreneurship

2013 ◽  
pp. 49-73
Author(s):  
Suh Chong-Hyuk ◽  
Kim Hyong-Mo
Keyword(s):  
Rural Development ◽  
Farm Income ◽  
Industrial Park ◽  
Income Source ◽  
Rural Industrialization ◽  
Rural Entrepreneurship ◽  
Industrial Parks ◽  
Policy Program ◽  
Industrialization Policy ◽  
Stagnation Period

From the early seventies the Korean Government has adopted a rural industrialization policy as an important measure for promoting rural development. It has been perceived that through this measure the over-concentration of economic activity would be controlled and dispersed. Development of rural industrialization has passed through three different phases: i) the period of promoting rural cottage-type industries (1960-80); ii) the period of rural industrial park establishment; and iii) a stagnation period after the early 1990s. Throughout the overall period government policy changed from an individual project-oriented approach to a diversified and comprehensive policy program. The policy programs, such as the development of rural industrial parks, off-farm income source development and vocational training programs for farm youths, have helped in promoting rural industrialization. On the other hand, policy programs promoting rural out-migration and unbalanced regional development policy have impacted negatively on rural industrialization. Presently one of the serious policy issues facing rural industries is how to secure a young labor force and how to promote rural entrepreneurship. In addition, rural development efforts by local government and authorities are necessary in order to increase investment from urban-based entrepreneur firms. Keywords:Rural industrialization, farm household, off-farm income, rural development, rural industrial park, rural

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