Economic Analysis of Non-Farm and Off-Farm Income Sector: A Way Ahead in Making Farmers Income Profitable

2021 ◽  
pp. 112-119
Keyword(s):  
Public Investment ◽  
Rural Households ◽  
Sampling Technique ◽  
Farm Households ◽  
Farm Income ◽  
Small Farmers ◽  
Income Diversification ◽  
Agricultural Income ◽  
Income Sources ◽  
Multi Stage

Income diversification is an important strategy to augments income among small and marginal farmers. This study evaluated the income diversification among farm households in the Ariyalur district. A multi-stage sampling technique was used, and 115 rural households were selected by applying Arkin and Colton formula. The data collected were analyzed using the Herfindahl index and Gini-coefficient. The results showed that the average number of income sources accessed by all marginal farmers is about 1.81, and small farmers are about 1.90, and small farmers had an income diversification range of 0.64 to 0.65, which is a medium diversification category. When the non-farm and off income were considered together with agricultural income, the overall income inequality dropped. The results suggested that the local government should take serious steps to create employment avenues for smallholders outside agriculture that provide credit, training, and necessary inputs to rural households and recommended for public investment in rural infrastructures, such as roads and bridges, telecommunications, education, energy, and water.

scholarly journals THE ISSUE OF INCOME DIVERSIFICATION AMONG RURAL FARMING HOUSEHOLDS: EMPIRICAL EVIDENCE FROM KWARA STATE, NIGERIA

2018 ◽  
Vol 49 (3) ◽  
pp. 231-238 ◽  
Author(s):  
Adeniyi Felix Akinrinde ◽  
Kemi Funmilayo Omotesho ◽  
Israel Ogulande
Keyword(s):  
Rural Areas ◽  
Household Head ◽  
Sampling Technique ◽  
Structured Interview ◽  
Farm Size ◽  
Farm Income ◽  
Income Diversification ◽  
Income Sources ◽  
Farming Families ◽  
The Government

The rising incidences of poverty among rural farming families are the reason behind renewed interest in income diversification. This study determined the level of income diversification; identified alternative income sources; examined the reasons for diversification; and identified the constraints to diversification. A three-stage random sampling technique was used in selecting 160 households on which a structured interview schedule was administered. Descriptive statistics, a Likert-type scale, and the Pearson’s Product Moment Correlation were used for data analyses. Findings reveal that 1.3% of the households had no additional sources of income while 40.6% had at least four. Trading (55%) and livestock keeping (40.7%) were the most popular alternative income sources. The declining farm income (mean = 2.96) was the primary reason for diversification, while poor rural infrastructure (mean = 3.04) was the most severe constraint to income diversification. Farm size, access to extension services, household size, age and educational level of the household head were significantly related to the level of income diversification at p < 0.05. The study concluded that the level of income diversification was high and influenced by socioeconomic characteristics of the households. It recommends that the government should provide adequate infrastructural facilities in rural areas. Farmer associations should also ensure better prices for agricultural produce through joint marketing.

scholarly journals Analyzing the Determinants of Non-farm Income Diversification of Farm Households in Peshawar District of Pakistan

2016 ◽  
Vol 9 (1) ◽  
pp. 33-48 ◽  
Author(s):  
Nazish Kanwal ◽  
Muhammad Ammad Khan ◽  
Zhihao Zheng
Keyword(s):  
Agricultural Sector ◽  
Full Employment ◽  
Sampling Technique ◽  
Ordinary Least Squares ◽  
Farm Households ◽  
Living Standard ◽  
Farm Income ◽  
Least Squares Regression ◽  
Income Diversification ◽  
Statistical Measures

Abstract The agricultural sector in Pakistan is not well-established to provide full employment opportunities and sufficient income for needed living standard to the rural population. Stagnant agricultural productivity and low returns in farming have led rural residents to look for alternative livelihoods, especially non-farm employment. With this background, the present study is an endeavor to empirically determine the factors of non-farm income diversification of rural farm households in Peshawar district of Pakistan. The study was undertaken in four villages and data was amassed from 196 small farming households by using the multi-stage sampling technique. The data were analyzed using the descriptive statistical measures, the mean of income shares approach and the ordinary least squares regression analysis. The results indicate that in all the selected villages, the pattern of non-farm employment was more or less the same; however, the income from non-farm employment activities had an important contribution towards incrementing the absolute income of farm households. Non-farm income diversification is hence crucial for sustaining livelihoods and an integral dimension for invigorating rural economies. Therefore, the study recommends the promotion of non-farm employment as a good strategy for supplementing the income of small farmers without shifting attention from agriculture.

DETERMINANTS OF INCOME DIVERSIFICATION DECISION FOR OFF-FARM WORK OF RURAL HOUSEHOLDS IN KONTUM PROVINCE, VIETNAM

2018 ◽  
Vol 126 (3E) ◽  
Author(s):  
Đào Thị Ly Sa
Keyword(s):  
Poverty Reduction ◽  
Rural Households ◽  
Household Head ◽  
Sampling Technique ◽  
Farm Size ◽  
Income Diversification ◽  
Access To Credit ◽  
Farm Work ◽  
Number Of Children ◽  
Multi Stage

Abstract:  Kon Tum, a mountainous northernmost border province in the Central Highlands of Vietnam, is one of the poorest provinces in Vietnam. Many studies recently identified that the diversification of incomes is a critical livelihood strategy for rural households in developing countries. Thus, this study analyzes the factors influencing income diversification decision for off-farm work of rural households. The binary logit model will be employed to investigate the determinants of income diversification decision of rural households for off-farm work. Through 200 households selected using multi-stage sampling technique, this study showed that participation in off-farm employment was influenced by gender, age, education of household head, family size, number of children attending school, farm size, access to credit, and access to tarred roads. The findings suggested that it is important to support both agricultural and non-agricultural sectors to succeed in terms of poverty reduction and food security.Keywords: income diversification, off-farm work, rural household, poverty,  Kon Tum

scholarly journals Profitability of Small Scale Vegetable Production in Southern District, Botswana

2017 ◽  
Vol 5 (1) ◽  
pp. 35
Author(s):  
Sekgopa T. Kealeboga ◽  
Lagat K. Job ◽  
Tselaesele M. Nelson
Keyword(s):  
Rural Households ◽  
Sampling Technique ◽  
Small Scale ◽  
Vegetable Production ◽  
Eradication Programme ◽  
Gross Margin ◽  
Production Program ◽  
Extreme Poverty ◽  
Pests And Diseases ◽  
Multi Stage

Government determination to eradicate extreme poverty and food insecurity among Batswana through small scale vegetable production program appears not to transform their economic stance. Rural households that are part of Poverty Eradication Programme were investigated to determine if backyard gardens were profitable enough to improve incomes, reduce extreme poverty, and increase food security. The study aimed at analysing profitability and identifying factors that affect profitability of backyard gardening. Multi-stage sampling technique was used to collect data from 100 rural households who are part of the backyard garden scheme. Data was analysed using descriptive statistics, gross margin analysis and regression analysis. Results indicated that backyard gardening was a viable activity though profitability was affected by amount of fertilizer applied, market availability and area planted. Beneficiaries indicated that the production and marketing constraints they faced included pests and diseases, lack of water, lack of market and poor prices. Program leaders must recognize the production and marketing constraints themselves as well as plan for the possibility that continual financial support for investment in the initial years of operation.

scholarly journals Forestland-dependent households: a primary agent of deforestation in Nigeria?

2019 ◽  
Vol 52 (1) ◽  
pp. 19-25
Author(s):  
Ayoade Matthew Adetoye
Keyword(s):  
Land Use ◽  
Sampling Technique ◽  
Household Survey ◽  
Continuous Cultivation ◽  
Quantitative Information ◽  
Farm Households ◽  
Farm Income ◽  
Probit Regression ◽  
Land Use Pattern ◽  
Primary Agent

Abstract Despite global concerns on environment particularly, issues on deforestation, there is a lack of quantitative information on deforestation drivers. The study investigates the role of farm households in deforestation process in Nigeria. Household survey data were obtained from 300 farm households with the aid of personally administered questionnaire through a multistage sampling technique. The data were used to answer a question on how farmers contribute to deforestation process in Nigeria. The data were analysed using descriptive statistics and Probit regression model. The results show that 64 % of the farmers gain access to cultivate already opened forestland through uncoordinated harvesting of forest trees while others still maintain sustainable forest land use practice – agroforestry. Sex (P < 0.05; β = 2.34), land security (P < 0.01; β = 2.94), personal preference for tree on farm land (P < 0.05; β = −2.45), and non-farm income (P < 0.05; β = 2.50) are factors influencing land use pattern among farm households. The study revealed that most farmers cultivate open forestland, but their continuous cultivation further enhanced forestland use change. The study concludes that rural farm households though one of the agents of forestland use change were found as opportunist and not mostly the primary agent initiating forestland use change in Nigeria. The study negates the conception of several past studies.

THE DETERMINANTS OF LIVELIHOOD INCOME DIVERSIFICATION AMONG RURAL FARMING HOUSEHOLDS IN OSUN STATE, NIGERIA.

2021 ◽  
Vol 5 (2) ◽  
pp. 79-84
Author(s):  
M. Akinyemi ◽  
J. A. Olayinka ◽  
M. Junaidu ◽  
D. Ekpa ◽  
T. Bodaga ◽  
...  
Keyword(s):  
Regression Analysis ◽  
Rural Economy ◽  
Descriptive Statistics ◽  
Farm Households ◽  
Farm Size ◽  
Farm Income ◽  
Agricultural Practice ◽  
African Countries ◽  
Income Diversification ◽  
Access To Credit

Rural economy in Nigeria is worst hit with the erratic and unpredictable factors that affect agricultural practice which is the main livelihood of the rural farm households. Consequently, farmers are left with the option of sourcing other means of survival to cope with the hard times due to in consistent and seasonal distribution of income which characterize small farm holders in sub-Saharan African countries. This study investigates the factor influencing the livelihood income diversification among rural farm households in Osun state, Nigeria. Multi stage sampling techniques was employed to sample120 structured and pre-tested questionnaires from 120 rural farm households. Descriptive statistics and multiple regression analysis were used to analyze the data. The results of the descriptive statistics revealed that household heads of age range 50-60 years are 38.6% and about 40.70% had primary education while 26.30% had no education. About 98.31% of the rural households engaged in farming out of which 80.57% have farm size ranging between 1-3 hacters. Logit regression analysis shows that access to credit was positively significant (P<0.05) which implies that farmers that have access to credit were more likelihood to have income diversification. Age of the farmers was negatively significant (P<0.1). It connotes that the older the farmers the lesser the likelihood to income diversification. Income equivalent of household was positively significant (P<0.1). Access to electricity was positively significant (P<0.05). This implies that access to electricity increase farmer’s likelihood to income diversification. The off-farm income analysis shows that education and farm size were respectively negative and

scholarly journals A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan

2021 ◽  
Vol 13 (16) ◽  
pp. 9084
Author(s):  
Muhammad Amjed Iqbal ◽  
Muhammad Rizwan ◽  
Azhar Abbas ◽  
Muhammad Sohail Amjad Makhdum ◽  
Rakhshanda Kousar ◽  
...  
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Social Protection ◽  
Family Income ◽  
Sampling Technique ◽  
Farm Income ◽  
Income Generation ◽  
Income Diversification ◽  
Farm Work ◽  
Agricultural Households

Many farmers worldwide resort to choosing various income-earning options for diversifying their income sources as a means of risk-avoidance, social protection, and, above all, to finance agricultural operations. Non-farm income generation among farm families has become an imperative part of livelihood earning strategies in recent years amid fast-evolving climatic and sociodemographic changes. In this regard, this study seeks to identify the patterns and socioeconomic factors responsible for the uptake of various non-farm income diversification sources among agricultural households in southern Punjab, Pakistan. For this purpose, a total of 290 farm households were sampled using a random sampling technique to collect relevant data through structured questionnaires. Results show that approximately 79% of the surveyed farmers were involved in non-farm income generation activities, whereas, the income from these sources accounts for about 15% of total household income. The majority of the respondents offered labour for off-farm work followed by self-employment ventures. The major reason to pursue non-farm work includes low income from agriculture, mitigating risks associated with farming, and acquiring funds to finance farming operations, along with the desire to increase family income. A range of socioeconomic and infrastructure-related variables are associated with the decision to participate in specific off-farm activity, such as age, education, family size, farm income, dependency burden, farming experience, and distance to the main city. Results imply the provision of technical support to increase livelihood from farming operations to ensure food security and curb rural-urban migration. However, vocational training can enhance the rural inhabitants’ skillset to diversify on the farm through agribusiness development within rural areas, enabling them to employ local people instead of populating urban centres.

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.

scholarly journals Rice crop residue management and its impact on farmers livelihood - an empirical study

2016 ◽  
Vol 27 (2) ◽  
pp. 189-199 ◽  
Author(s):  
MT Uddin ◽  
K Fatema
Keyword(s):  
Crop Residue ◽  
Crop Residues ◽  
Household Head ◽  
Rice Crop ◽  
Residue Management ◽  
Farm Households ◽  
Farm Size ◽  
Farm Income ◽  
Crop Residue Management ◽  
Agricultural Income

The study aimed to examine the present status of rice crop residue management and its impact on farmers’ livelihood covering two sub-districts in Mymensingh district of Bangladesh. A total of 100 farmers (50 for crop residue practicing farmers and 50 for the farmers involved in traditional farming) were selected randomly for data collection. A combination of descriptive, statistical and mathematical techniques were applied to achieve the objectives and to get the meaningful results. The results of descriptive statistics showed that retention was found higher in far distance plots from homestead. No retention of crop residues was found in case of Aus and Aman rice. The whole retention was found only in case of Boro rice. The shortage of labour in season and the wage rate were also important factors for the retention of crop residues. However, farmers’ perceptions about the use of crop residues were mostly adding organic matter to the crop field followed by mulching and feeding animal. The recycling of resources among crop retention and livestock has the great potential to return a considerable amount of plant nutrients to the soil in the rice based crop production systems. Due to crop residue practices, crop and livestock both were benefited through resource interdependences. The sampled farmers were benefited from retention of crop residues by improving soil quality, soil moisture, etc.; and farmers used less amounts of fertilizer, irrigation water, etc. for the succeeding crops. Consequently, succeeding crop productivity, profitability and annual income were increased significantly. The result of logit regression model shows that age of household head, farm size, agricultural income and non-farm income were found as significant variables in explaining the variation in crop residue adoption of farm households. To assess the livelihood pattern of sample farm households through asset pentagon approach, noteworthy improvement was found s on different capitals. The study identified some problems regarding crop residue management and finally, recommended that if the farmers get proper training for such management, it would be helpful to improve their livelihood.Progressive Agriculture 27 (2): 189-199, 2016

THE DETERMINANTS OF LIVELIHOOD INCOME DIVERSIFICATION AMONG RURAL FARMING HOUSEHOLDS IN OSUN STATE, NIGERIA

2021 ◽  
Vol 5 (2) ◽  
pp. 171-176
Author(s):  
M. Akinyemi ◽  
J. A. Olayinka ◽  
M. Junaidu ◽  
D. Ekpa ◽  
T. Bodaga ◽  
...  
Keyword(s):  
Regression Analysis ◽  
Rural Economy ◽  
Descriptive Statistics ◽  
Farm Households ◽  
Farm Size ◽  
Farm Income ◽  
Agricultural Practice ◽  
African Countries ◽  
Income Diversification ◽  
Access To Credit

Rural economy in Nigeria is worst hit with the erratic and unpredictable factors that affect agricultural practice which is the main livelihood of the rural farm households. Consequently, farmers are left with the option of sourcing other means of survival to cope with the hard times due to inconsistent and seasonal distribution of income which characterize small farm holders in sub-Saharan African countries. This study investigates the factor influencing the livelihood income diversification among rural farm households in Osun state, Nigeria. Multi stage sampling techniques was employed to sample 120 structured and pre-tested questionnaires from 120 rural farm households. Descriptive statistics and multiple regression analysis were used to analyze the data. The results of the descriptive statistics revealed that household heads of age range 50-60 years are 38.6% and about 40.70% had primary education while 26.30% had no education. About 98.31% of the rural households engaged in farming out of which 80.57% have farm size ranging between 1-3hacters. Logit regression analysis shows that access to credit was positively significant (P<0.05) which implies that farmers that have access to credit were more likelihood to have income diversification. Age of the farmers was negatively significant (P<0.1). It connotes that the older the farmers the lesser the likelihood to income diversification. Income equivalent of household was positively significant (P<0.1). Access to electricity was positively significant (P<0.05). This implies that access to electricity increase farmer’s likelihood to income diversification. The off-farm income analysis shows that education and farm size were respectively negative and

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