Abstract
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.
Highlights
The economy of Pakistan is mainly dependent on agriculture which is the principal source of livelihood for rural people
Since Pakistan has an agricultural economy, economic growth depends on agriculture as well as farm activities
[20] In Pakistan, non-farm activities have become a vital element of income generation strategies among agricultural households with the possibility of increasing their share of non-farm income to total farm income as evinced by [21] and [22], who note that the share of non-farm income in total household income may increase with the passage of time in many developing countries
Summary
Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan. Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations
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