Main Influences on Farm Income

Abstract

In this study, the category ‘farm income’ is used in a contrasting sense to ‘non-farm income’. It refers to the net household income derived from agricultural sectors (crop production, animal husbandry, fishery and forestry). Farm income constitutes major part of total peasant net income in the observed regions. Increases in farm income are a direct incentive to farmers to raising production, which is a basis for ensuring and improving the living standard of the entire population. Therefore, to identify the key factors which most affect farm income is not only important for this study, but may also be useful for future policy-making. In the first section of this chapter the main reasons for the general increase in farm income since the rural economic reform will be discussed mainly using official data. The distribution of farm income among the sample households in 1985 will then be examined. Finally, the influences on inequality of farm income will be analyzed statistically.