RT Journal
T1 DETERMINANTS FOR INCOME DIVERSIFICATION BY FARM HOUSEHOLDS IN
A1 A. Nazir
A1 G. Li
A1 S. Inayat
A1 M. A. Iqbal
A1 A. Humayoon
A1 S. Akhtar
JF Journal of Animal and Plant Sciences
JO JAPS
SN 1018-7081
VO 28
IS 4
SP 1163
OP 1173
YR 2018
FD 2018/08/01
DO DOI NA
AB Farmers have numerous ways to tackle agricultural risks and most of them employ the income diversification strategies simultaneously. The present study analyses the determinants of the income diversification decisions by farm households. Data was collected from 400 farm households in Sindh province of Pakistan. Results show that 69 percent farm households were employing off-farm activities as diversification strategy. Business was the most adopted off-farm diversification strategy followed by government service. The marginal effect of probit regression divulged that one-year increase in education level would results in 2.5% escalation in the probability of farmer to go for off-farm income sources. Also, the multinomial probit regression revealed that adults participating in off-farm works coefficient were negative but highly significant in all diversification strategies. Likewise, farming area, dependency ratio and family size are the driving factors for participation in off-farm labour activities. Therefore, some different income diversifications strategies should be developed, by which farmers can earn additionally and smooth their income. Further, low interest credit arrangement should be introduced for the farmers, specifically for the small and marginal farmers to fabricate their own off-farm income producing sources. So that farmers can improvise and earn more benefits, improve their living standard and alleviate poverty as well. JEL: C01, D30, J24, L25, Q12 agricultural sources is increasing. For instance, Fernandez-Cornejo et al., (2007) indicted that almost two
K1 Off-farm income; Credit; Probit regression: Multinomial Probit Regression; Pakistan
PB Pakistan Agricultural Scientists Forum
LK https://thejaps.org.pk/AbstractView.aspx?mid=2018-JAPS-427