Agricultural diversification and enhancing farm income: Learning from grassroots

Abstract

Enhancing the income of farmers is a national priority to address the agrarian issue of distress and improving farmers’ welfare. In this context, a network of Krishi Vigyan Kendras (KVKs) was engaged to make interventions on farmers’ field. This study carried out in Madhya Pradesh, presents the quantitative assessment on the impacts of KVKs’ initiatives in terms of different interventions made to contribute in farmers' income (doubling farmers income, DFI). The structured sampling method was followed using multi-stage random sampling. This has covered selecting 11 agro-climatic regions of the state and 25% of KVKs from each region. Further, 2 treatment (DFI) and 2 control (non-DFI) villages were taken. Finally, from each village, a total of 20 farm households were taken. The results indicated that average treatment effect on the treated (ATT), which is the difference between matched DFI and non- DFI households after accounting for counterfactual, was positive and significant. The value of ATT implies that net income of DFI households was more than that of non-DFI households by 111%. The net income of DFI households has increased by 156% during 2016–17 (the year of launch of KVKs' DFI scheme) to 2020–21. Households with male heads, without any other source of income, owning smaller livestock and land holdings were observed to get benefit from participation in the interventions on DFI made by the KVKs. Recognition and response to the heterogeneity treatment effect can help in optimizing resource allocation, enhancing programme effectiveness and maximizing the potential impact of the KVKs’ DFI initiatives. Agricultural diversification shifted to high value crops (e.g., like vegetables, dairying, etc.), has been crucial in enhancing income of DFI households.