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 Does Off-Farm Work Improve Farm Income? Empirical Evidence from Tolon District in Northern Ghana

2020 ◽  
Vol 2020 ◽  
pp. 1-8
Author(s):  
Benjamin Tetteh Anang ◽  
Kwame Nkrumah-Ennin ◽  
Joshua Anamsigiya Nyaaba
Keyword(s):  
Propensity Score ◽  
Propensity Score Matching ◽  
Empirical Evidence ◽  
Farm Size ◽  
Northern Ghana ◽  
Farm Income ◽  
Income Diversification ◽  
Farm Work ◽  
On Farm ◽  
The Impact

Participation of farm households in off-farm work has gained prominence in recent times as an income diversification strategy. The effect of off-farm work on farm income is however unclear. This paper therefore sought to provide empirical evidence of the income effect of off-farm activity participation using a cross section of maize farmers in Tolon District of Ghana as a case study. In order to account for sample selection bias, the Heckman selection model was used to estimate the factors influencing participation in off-farm work and the determinants of farm income. Furthermore, the study employed propensity score matching to evaluate the impact of off-farm work on farm income. The results indicate that participation in off-farm work is influenced by sex, age, and years of formal education of the respondent, farm size, and number of dependents while farm income is influenced by age of the respondent, farm size, and access to credit. In addition, the result of the propensity score matching revealed that participants in off-farm work increased their farm income by at least GH¢ 1702 as a result of income diversification. The rural economy therefore provides off-farm and on-farm linkages that enhance farmers’ income from agriculture. The creation of employment opportunities outside the farm will therefore complement on-farm work and enhance income from farming.

Nonfarm diversification and the well-being of rural farm households in developing countries: Evidence from Ghana using new dataset

2018 ◽  
Vol 69 (3) ◽  
pp. 207-229
Author(s):  
Bernardin Senadza ◽  
Edward Nketiah-Amponsah ◽  
Samuel Ampaw
Keyword(s):  
Well Being ◽  
Household Consumption ◽  
Empirical Method ◽  
Farm Households ◽  
Consumption Expenditure ◽  
Switching Regression ◽  
Rural Ghana ◽  
Per Capita ◽  
Nationally Representative ◽  
The Impact

Abstract This paper examines the impact of participation in both farm and nonfarm activities on both household consumption expenditure per adult equivalent and household per capita income, in rural Ghana. The objective is to ascertain whether the results are sensitive to the choice of well-being measure. We use a nationally representative dataset on 8,059 rural farm households collected in 2012/13. In order to account for potential selectivity and endogeneity biases, which previous studies failed to correct for, we adopt the endogenous switching regression (ESR) estimation technique. We find diversified households to be systematically different from their undiversified counterparts in terms of socioeconomic and demographic centeracteristics, thus justifying the empirical method used. Our results indicate a higher observed mean consumption for the diversified sub-sample compared to its counterfactual, implying that households participating in nonfarm enterprise activities in addition to farming have greater mean consumption compared to households engaged solely in farming. Similar conclusions are reached when income instead is used as the well-being indicator. Our findings, thus, indicate that the well-being implication of farm-nonfarm diversification is insensitive to the choice of well-being measure.

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 Does Participation in Agricultural Cooperatives Affect Farm Sustainability? Empirical Evidence from Taiwan

2019 ◽  
Vol 11 (18) ◽  
pp. 4987 ◽  
Author(s):  
Bo Wang ◽  
Po-Yuan Cheng ◽  
Brian Lee ◽  
Lih-Chyun Sun ◽  
Hung-Hao Chang
Keyword(s):  
Farm Households ◽  
Agricultural Cooperatives ◽  
Food Labels ◽  
Potential Mechanism ◽  
Farm Production ◽  
Causal Mediation Analysis ◽  
Nationally Representative ◽  
Farm Sustainability ◽  
On Farm ◽  
The Impact

Recent research has highlighted the importance of agricultural cooperatives on farm production. Although the consensus from the literature suggests that participating in these organizations significantly affects farm production, there is inconclusive evidence on whether this effect is positive or negative. Moreover, previous studies solely focus on the magnitude of this effect and fail to explain the mechanism behind it. This study contributes to this knowledge gap by estimating the impact of agricultural cooperatives on farm profits. To do this, we apply the causal mediation analysis to explain the potential mechanism behind this relationship. Using a nationally representative survey of farm households from Taiwan in 2013, we find that participating in cooperatives increases farm profits. Furthermore, this effect is more pronounced for producers with higher profits. Concerning the mechanism, we find that the use of food labels accounts for approximately 15 to 28% of the total effect of cooperative participation on farm profits.

scholarly journals Income and Expenditure of Farm Households: A Micro Perspective

2020 ◽  
pp. 147-159
Author(s):  
K. R. Hamsa ◽  
K. B. Umesh
Keyword(s):  
Income Distribution ◽  
Food Consumption ◽  
Farm Households ◽  
Farm Income ◽  
Household Expenditure ◽  
Consumption Expenditure ◽  
Employment Opportunities ◽  
Consumption Expenditures ◽  
Food Items ◽  
Micro Level

This micro level study, conducted in the Southern Karnataka to examine the sources of income and pattern of household expenditure, revealed that farm activities are the main sources of income in both progressive and less progressive areas and non-farm and off-farm activity (mainly agricultural labour) contributes only a negligible portion. The smallholders as well as rainfed households during the slack agricultural season depend on rural non-farm activities through non- agricultural labour as the source of earning in progressive area where as in less progressive area, all the categories of farmers had their non-farm income earned majorly from house rent. Percentage of spending on various items varied with category of farmers. With the increase in income, there was increase in expenditure on non-food items, which was observed in both areas. Inequality in income distribution was less than consumption expenditure due to unequal non-food consumption expenditures in both areas. There was a relatively higher income and expenditure inequality has observed in less progressive area compared to progressive area. Overall, it was evident from the results that, even though farm income contribution was more in both areas, still improving off and non-farm employment opportunities that adds to income and helps for further savings.

scholarly journals Income Diversification and Sustainable Land Management Practices among Rural Cassava-based Farmers in Imo State

2019 ◽  
pp. 1-14
Author(s):  
I. H. Eririogu ◽  
E. D. Mevayekuku ◽  
R. N. Echebiri ◽  
A. Atama ◽  
P. C. Amanze ◽  
...  
Keyword(s):  
Land Management ◽  
Management Practices ◽  
Diversity Index ◽  
Primary Data ◽  
Farm Income ◽  
Sustainable Land Management ◽  
Income Diversification ◽  
Imo State ◽  
Cassava Production ◽  
On Farm

Aims: To examine the income diversification activities and sustainable land management practices among rural cassava-based farmers in Imo State, Nigeria. Study Design: Primary data collection. Place and Duration of Study: Michael Okpara University of Agriculture, Umudike, Pre-requisite study, Post-Graduation in Agricultural Resource and Environmental Economics, between August 2017 and January 2018. Methodology: Data were collected using well-structured questionnaire, administered to rural cassava-based farmers. Multi-stage and purposive sampling techniques were employed, and one hundred and twenty (120) farmers were randomly selected for the study. Data collected were analyzed using descriptive statistics, Sustainable Land Management Index, Probit model and Inverse Herfindahl–Hirschman Diversity Index. The sustainable land management index (SLMI) was constructed from twelve (12) different sustainable land management indicators based on the sustainable practices prevalent in the study area. Results: Results showed that cassava-based production was dominated by female farmers (63.33%) with mean age of 46, married (70.00%) with mean household size of 6 persons. The Inverse Herfindahl-Hirschman Diversity (IHHD) results showed that 87.50% of rural cassava-based farmers diversified their income base into other income-generating activities namely, off-farm and/or non-farm activities. The mean naira value for on-farm income was N 130,646.2k, while that of off-farm and non-farm were N 20,554.17k and N 78,333.33k, respectively. Cassava-based farmers diversified mostly into non-farm activities together with their on-farm activities, with a mean annual income (in naira) of N244,333.60k. The probit analysis showed that off-farm and non-farm activities have positive and significant effects on sustainable land management practices. The off-farm and non-farm activities encouraged the rural cassava-based farmers to adapt sustainable land management practices. However, doubling farmer’s engagement to off-farm activities (off-farm2) had a negative effect on sustainable land management, indicating that doubling their engagement to off-farm activities empowers farmers to adapt unsustainable labour-saving practices such over use of agrochemicals (herbicides, inorganic fertilizers and insecticides), due to drudgery and exhaustion as they allocate more of their labour services to another farmer’s farm. Conclusion: In order to improve the adoption and adaption of sustainable land management practices, and reduce the drudgery in cassava production as farmers diversify more into off-farm activities, sustainable labour-saving technologies and practices such as conservation tillage and simple tools that reduce labour requirement in cassava production, save time and energy, were recommended. More lands should be allocated to cassava farmers, as farm land diversity will facilitate the adoption and adaption of sustainable land management practices such as fallowing and crop rotation that increase productivity by replacing fallow periods with growing different crops that replenish soil nutrients.

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

Rice farm income diversification in Ghana and implications on household consumption expenditure

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bismark Amfo ◽  
James Osei Mensah ◽  
Ernest Baba Ali ◽  
Gilbert Dagunga ◽  
Seth Etuah ◽  
...  
Keyword(s):  
Value Chain ◽  
Production Systems ◽  
Rice Production ◽  
Primary Data ◽  
Farm Income ◽  
Crop Diversification ◽  
Consumption Expenditure ◽  
Income Diversification ◽  
Content Type ◽  
Rice Farmers

PurposeThis study investigates implications of crop and income diversifications on consumption expenditure (welfare) of rice-producing households in Ghana. It further compares diversification by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production.Design/methodology/approachPrimary data were sourced from 225 rice farmers. Margalef index and three-stage least-squares were employed.FindingsMajority of rice-farming households in Ghana diversify livelihoods. The extent of livelihood diversification differs among two-season rain-fed, two-season irrigated and one-season rain-fed rice-producing households. Credit, distance to district capitals, production purpose and number of farming seasons influence crop and income diversifications, and consumption expenditure of rice-producing households. While crop diversification reduces consumption expenditure, income diversification increases it. Crop and income diversifications positively influence each other. Consumption expenditure reduces crop diversification but increases income diversification.Practical implicationsPolicy should be directed towards the promotion of more livelihood activities to boost rice farmers' welfare. There should be awareness creation and training programmes to enable rice farmers realize different economic activities within and outside the agricultural value chain.Originality/valueCrop and income diversifications were measured as continuous response variables, unlike previous studies that used a binary response variable. The authors established a synergy among crop and income diversifications, and consumption expenditure (welfare). The authors further compared crop and income diversifications by three rice production systems: two-season rain-fed, two-season irrigated and one-season rain-fed rice production systems.

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.

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