Non-farm Households Research Articles

Risk Attitudes and Sources of Finance: Evidence from Non-Farm Household Enterprises in Ghana

ABSTRACT Several theories in economics and finance suggest that risk attitudes play a vital role in economic choices, including being an entrepreneur and the choice of finance for businesses. However, there are limited empirical tests of these theories in the African context, where majority of firms are small and medium-scale enterprises. Using the 7th round of the Ghana Living Standards Survey (GLSS 7), this study estimates the effect of risk attitudes on the decision to own a household enterprise and the choice of finance by owners of household enterprises. The study finds no significant impact of risk aversion on household enterprise ownership. We find risk aversion to significantly influence the use of self-financing as start-up capital; however, after controlling for access to finance, this effect reduces. We also did not find a significant relationship between risk aversion and the use of loan financing as working capital. The findings from this study shed light on the risk management strategy of household enterprise owners and suggest that access to finance is an important determinant of sources of financing. Hence, to spur growth of these critical household enterprises, the essential role of access to finance should be addressed by policymakers.

COVID-19 pandemic, household welfare and diversification strategies of smallholder farmers in Uganda

Agricultural activities in many sub-Saharan African (SSA) countries are subject to various risk factors that the COVID-19 compounds. Earlier studies on the effect of COVID-19 on smallholders neglect the issue of comparison with non-farm households. The study uses micro-level household datasets to explore the impact of the COVID-19 pandemic on household welfare, with a focus on farm households relative to their non-farm counterparts. We employed a binary probit model and Propensity Score Matching (PSM) approach and demonstrated that farm households witnessed important income reductions during the COVID-19 pandemic in Uganda. The study contributes to the design of evidence-based approaches to reducing farmers’ vulnerabilities to agricultural risks and pandemic-related shocks.

AD|ARC (Administrative Data Agri-Research Collection): Linking Individual, Household and Farm Business Data for Sociodemographic Research on Farming Households

ObjectiveTo understand the socio-demographic characteristics and structure of farming households in Wales who receive subsidies compared to non-farming rural households. Approach We utilised the AD|ARC dataset, a comprehensive resource we created within the SAIL databank by linking de-identified records of farms receiving farming subsidies in Wales with socio-demographic information from the Census 2011. A control group was created by matching each farming household with up to three households in the 2011 Census from a similar geographical area that did not contain a farmer or household member in receipt of farming subsidies. We used Census 2011 variables to compare household size, family structure and age for 18,135 farming households with a control group of 53,365 rural non-farming households. Results We found little difference between the age and gender distribution between cohorts, however we found significant differences in the household structure. Farming households had a larger average size compared to non-farming households. Single-occupancy farming households had a significantly higher proportion of males, farming households were more likely to have couples with children and a higher percentage of these couples were married compared to non-farming households. Implications The agriculture sector in Wales is facing a range of challenges linked to social, economic, and environmental sustainability as it establishes a new direction after UK withdrawal from the EU. Understanding the sociodemographic characteristics of farming communities is essential for developing effective policies and interventions that address the specific needs and challenges faced by these groups.

AD|ARC (Administrative Data Agri-Research Collection): Comparative analysis of highest educational qualification in Welsh households receiving a farming subsidy with rurality-matched control households, using 2011 UK Census data.

Objective To investigate highest level of educational attainment in farming households compared to rural non-farming households in Wales. Approach We used the AD|ARC dataset of households in Wales receiving farming subsidies in 2010. We included farming households containing at least one member reporting an Agricultural Main Occupation (AMO) and households where all members reported Non-Agricultural Main Occupations (Non-AMO) but farming occurs. Utilising Census 2011 variables relating to age, gender, education and occupation we conducted comparative analyses of educational attainment within AMO, Non-AMO and non-farming rural households at both an individual and household level. ResultsFindings will be presented comparing the educational attainment for AMO individuals with matched individuals within Non-AMO and non-farming rural households. At the household level, we calculated the highest level of education attained within each household and will present results comparing the highest household level of education between each group. We will present detailed results regarding the structure and educational attainment within these households. Full results and findings will be presented at the conference but are currently subject to information governance restrictions. ConclusionOne indicator of resilience amongst farmers and farm households is ability to respond to economic and non-economic pressures by adopting new practices and techniques or reducing reliance on farming via diversification or off-farm employment. As educational attainment is closely correlated to acquisition of skills and is a gateway to employment, understanding relative and absolute levels of attainment is important in identifying need and devising policies which support agricultural and rural communities.

Sustainable urban farming management: A comparison study in Thailand and Indonesia

Background: Urban farming is the process of producing food and other products on urban land that provides social and environmental benefits and reduces negative environmental, social and health impacts associated with urban production and consumption patterns. Findings: This article identifies the key characteristics of urban agriculture in Thailand and Indonesia, focusing on the approaches and administration of production and distribution procedures. Methods: The approach employed in this article involves descriptive analysis, utilizing data sources derived from literature reviews of diverse scientific articles associated with urban farming management in Thailand and Indonesia in the 2015-2023 timeframe and then comparative analysis. Conclusion: Urban farming management in Thailand, especially in the Bangkok Metro Regions (BMR), and in Indonesia, especially in Jakarta, faces various challenges. The BMR in Thailand has been trying to improve food self-sufficiency since 2010, utilizing canals as a source of irrigation and transportation, and has the constraint of the lack of connection of urban agricultural actors to traditional markets. High population density and conversion of agricultural land in Jakarta are serious problems, especially after the 1998 economic crisis, urban agriculture developed with residents using land for agriculture, but uncertainty over land rights increased due to industrialization. A challenge in urban agriculture management in Thailand and Indonesia is the lack of coordination in urban agriculture regulations and infrastructure and stakeholders can address this through better communication between urban agricultural actors, retailers, and non-farming households.

Understanding food insecurity in rural India: A comparative examination of farming and non-farming families during the coronavirus lockdown

Food insecurity has become an increasingly pressing issue during the COVID-19 lockdown in India, particularly in the rural areas. The COVID-19 pandemic had a strong impact on livelihoods and economic activities, resulting in a significant increase in the prevalence of food insecurity. The objective of this study is to examine the sociodemographic determinants of food insecurity among the rural poor in India during the COVID-19 lockdown. MethodsData for this study were extracted from the COVID-19-Related Shocks in Rural India 2020 survey (Round 2, 2020). Study areas included: Rajasthan (n=930), Uttar Pradesh (n=778), Bihar (n=1,073), Jharkhand(n=890), Madhya Pradesh (n=823) and Andhra Pradesh (n=511). ResultsOverall, 26.1% of respondents reported having reduced portion sizes or meals, 5.7% reported someone in their household going hungry, and 5.9% indicated they had run out of food. Participants from Scheduled Castes had a higher risk of reduced portion sizes (RR=1.54; 95% CI=1.26,1.89) and running out of food (RR=1.57; 95% CI=1.01,2.45). Male sex was associated with a lower risk of reduced portion sizes (RR=0.82; 95% CI=0.72,0.93). Compared to participants from Rajasthan, those from states such as Uttar Pradesh, Bihar, and Madhya Pradesh had significantly higher risks of experiencing all three food insecurity indicators. For instance, participants from Bihar had the highest risk for reduced portion sizes (RR=3.14, 95% CI=1.95,5.06), someone being hungry and not eating (RR=3.14, 95% CI=1.95,5.06), and running out of food (RR=2.79, 95% CI=1.66,4.68). ConclusionThe results indicate that when designing food security programs in rural India, it is important to consider factors such as gender, household size, religion, occupation, and region. Additionally, non-farming households faced higher relative risks of food insecurity, emphasizing the necessity for targeted interventions and support to address the vulnerabilities of these households.

Has the Household Old-Age Burden Affected Farm Household Incomes? Evidence from a Survey of Chinese Farm Households

Income increase is an important way to achieve comprehensive human development and to escape from poverty, and the growing aging problem in rural China poses a challenge to farm household income increase. In order to gain a deeper understanding of the impact of China’s rural old-age burden on farm household income, this paper empirically examines the impact and mechanism of household old-age burden on farm household income based on the data from the 2023 micro-farm field survey of China’s Henan Province, utilizing linear regression modeling and mediation effect modeling, filling the research gaps in the related fields. The results of the study found that, firstly, family old-age burden has a significant impact on the income of farm households, and that the heavier the family old-age burden, the lower the total income of farm households. Secondly, from the results of the heterogeneity of the impact, the poorer the health condition, the greater the negative impact of family old-age burden on farm household income. Old-age burden has a greater impact on high-income farm households than on low-income farm households, and old-age burden has a significant impact on the income of part-time farm households, while the impact is not significant on purely farm and non-farm households. Thirdly, the heavier the household old-age burden, the more unfavorable it is to the non-farm employment of farm households, thus affecting the income capacity of farm households. Finally, corresponding countermeasures and recommendations are put forward in three areas, namely, the continuous improvement of the social old-age security system, the realization of the function of the social old-age mechanism as an old-age pocket for key special groups, and the improvement of the social flexible employment mechanism.

Factors Influencing Access to Formal Credit by Pottery Households: Case Study in Bat Trang Village, Hanoi, Vietnam

Purpose:This paper aims to investigate the factors influencing pottery households’ access to formal credit in a craft village in Hanoi city, Northern Vietnam. Methods: By using Yamande’s formula, sample size of 167 households was determined. Descriptive statistics and Probit regression model were applied in quantitative data analysis. Results: Diversification of rural livelihood through the development of non-farm activities is one of important policies for holistic rural development in Vietnam. However, non-farm households in general and pottery households in particular have faced with capital shortage in production process. One of reasons for their capital limitation is difficulties in formal credit access. This research indicated that households’ credit access was influenced by factors including age, educational level, collateral value asset, and return from ceramic production after tax. Practical implications: This study presented important roles of formal credit for economic development of rural households in general and pottery households in particular. However, most households meet difficulties in accessing to formal credit due to their old age, lack of collateral assets and low return from their production. Originality: This study implied that policy makers in Vietnam should implement a specific credit support for non-farm households in rural areas. In addition, commercial banks should loose credit requirements on collateral value assets in order to help rural non-farm households to access to formal credit, particularly banking loan.

Income inequality of tribal households in Bangladesh: A decomposition analysis

This paper uses field survey data to examine farm and non-farm income to reduce income inequality among tribal households in Sylhet district, Bangladesh. It uses a decomposition method and a regression-based decomposition method to measure income and expenditure inequality by source of income as well as by household and family characteristics. For this, non-farm income was considered as an external transfer of total income to decompose the Gini index and as a potential substitute for farm income, taking into account household preferences. The results indicate that income differences exist between farm and non-farm income, thereby increasing income inequality. The endowment effect on household characteristics was positive and significant, directly supporting the increase in non-farm income per capita daily household expenditure. On the other hand, in terms of its components, non-farm self-employment income reduces income inequality, while non-farm wage income increases income inequality. At the 50th quantile results, an additional year of age of the household head increases the per capita expenditure of farm and non-farm households by BDT 300 to BDT 400, respectively. Moreover, the education of household heads also positively and significantly affects the per capita expenditure of non-farm households. As estimated by the 50th quantile, farm and non-farm households with graduation had higher per capita daily expenditure than household heads with primary education. Raising household education level and total farm household income to a better level, adopting farm-income enhancement programs, and enacting policies to increase alternative income opportunities that will shift income from non-agricultural to agricultural tribal households, reduce income inequality, and bring about the well-being of tribal society.

Strategi Nafkah Rumah Tangga Petani Padi Lahan Kering di Desa Kragan, Kecamatan Gondangrejo, Karanganyar

This research was conducted with the aim of uncovering daily life, the livelihood strategies implemented, and the sustainability of livelihood strategies for the lives of dry land rice farmer households in Kragan Village. This research was conducted using descriptive qualitative methods with a case study approach. The research location was determined purposively in Kragan Village, Gondangrejo District, Karanganyar Regency. Determination of informants was carried out using purposive sampling and snowball sampling. Data validity uses triangulation of sources and techniques. The research results reveal that (1) On-farm households predominantly utilize financial capital in the form of personal capital. On-farm and non-farm households predominantly utilize human capital. On-farm, off-farm and non-farm households predominantly utilize financial capital in the form of loan capital. (2) Based on the livelihood strategy implemented, dry land rice farming households in Kragan Village are classified into 3, namely on-farm farming households, on-farm and non-farm farming households and on-farm, off-farm and non-farm farming households. (3) The livelihood strategies of on-farm farming households include consolidation, while the livelihood strategies of on-farm and non-farm farming households, and on-farm, off-farm and non-farm farming households include survival.

Participation and returns from informal service-oriented non-farm enterprises: Evidence from a survey of Nigerian households.

We investigate the factors that influence the selection and productivity of informal service-oriented family enterprises in Nigeria. Using nationally representative micro-data from the Nigerian General Household Survey (2010-2015), we employed random-effect probit and selectivity-adjusted regression models to estimate and analyze the results. The findings reveal that the location of informal Non-Farm Household Enterprises (NFHEs)-whether home-based or non-home-based-significantly impacts the wholesale, retail, personal, and consultancy service sectors operated by informal NFHEs. This impact remains significant even after accounting for variations in individuals, households, or locational characteristics. Furthermore, when considering selectivity in the earnings equation, we found that home-based informal enterprises exhibit lower productivity compared to non-home-based enterprises, a difference that varies across sectors. Overall, factors such as the gender of business owners, educational levels, geopolitical zones, infrastructure, and business characteristics play a crucial role in determining the locational and productivity disparities among service-oriented enterprises in Nigeria. Key recommendations stemming from this study include addressing gender-based segregation and economic disparities, prioritising financial inclusion for small business development, bridging infrastructure gaps, and implementing policies that acknowledge and bolster the informal sector.

Do large-scale agricultural entities achieve higher livelihood levels and better environmental outcomes than small households? Evidence from rural China.

There is an ongoing debate about the type or scale of agriculture that should be most encouraged. This study explores the differences in livelihood levels and outcomes between new agricultural business entities (NABEs) and traditional small households. We applied the analytical tools of a sustainable livelihood framework and a multiple linear regression model to describe the determinants of livelihood outcomes of 105 NABEs and 119 traditional small households in two typical areas around the Sichuan Basin in China. The results show that the overall livelihood level of NABEs is 1.40 times higher than traditional small households. NABEs with a mixed livelihood strategy of both planting and breeding have the highest livelihood level, followed by planting NABEs and breeding NABEs. About 3.13% of all agricultural entities are at risk of falling into poverty; the greater risk levels are associated with the subsidized households (30.00%), pure farmers (12.50%), and part-time farming households (1.69%). NABEs in the study area are verified to use 2.06 times more pesticide and herbicide inputs compared to traditional small households. Education level, technical training, financial accessibility, and the connection with professional cooperatives are common factors influencing the livelihood levels of the two groups of agricultural entities. Livelihood levels of NABEs are also significantly influenced by the age of NABE leaders, planting area per capita, and agricultural insurance. Based on these results, the study proposes policy interventions that are most appropriate for achieving higher livelihood levels among both NABEs and small households. Although the mixed type of NABEs and non-farming households are recognized as being better agricultural entity types for poverty alleviation, we recommend a balance between fostering NABEs and maintaining traditional small households; guidance related to green agriculture production for NABEs is also urgently needed.

Levels of Consumption Expenditure in Rural Non-Farm Households in Punjab

The study depicts that an average rural non-farm household spends Rs. 16,138.61 per year on consumption. The Bathinda district has the highest expenditure, followed by the Jalandhar and Gurdaspur districts. Rural non-farm households typically consume in a subsistence-oriented manner. Food goods account for a significant portion of these categories’ overall consumer spending. Rural non-farm households in the Bathinda district spend 1.20 times as much on consumption per person as non-farm households in the Gurdaspur district, and per-household consumption expenditure in the Bathinda district is 1.05 times the per-household consumption expenditure of non-farm households in Gurdaspur district. In comparison to the other two districts, the Gurdaspur district has a higher concentration of consumer expenditures. The average propensity to spend for non-farm families is less than one, however, for the lower four-income decile groups the non-farm households’ average consumption expenditure is larger than their average income.

Intestinal parasitic infections among children aged 12-59 months in Nyamasheke District, Rwanda.

Intestinal parasitic infections are a public health burden and a major cause of illness in developing countries. The diseases lead to various health threats, including growth retardation and mental health-related disorders, especially in children. We assessed the risk factors for intestinal parasitic infections among children aged 12-59 months residing in Nyamasheke District, Rwanda. A cross-sectional descriptive study was conducted using secondary data from 1,048 children aged 12-59 months whose stool samples were examined for the presence of intestinal parasites and whose results were registered in the laboratory information system in 2020. The prevalence of intestinal parasites in children aged 12-59 months was 53.2%. The dominant parasites were Ascaris lumbricoides (13.1%), followed by Giardia lamblia (10.9%), Entamoeba histolytica (7.9%), Trichuris trichiura (6.5%), hookworms (1.7%), and Taenia species (1.4%). A significant association was observed between intestinal parasites and the literacy of mothers or children's caregivers (odds ratio (OR)=5.09, P<0.001). Children from farming households were 2.8-fold more likely to contract intestinal parasitic infections than those from nonfarming households (OR=2.8, P<0.001). A significant association was also observed between intestinal parasites and food safety (OR=4.9, P<0.001). Intestinal parasitic infections were significantly associated with hand hygiene practices after using the toilet and washing fresh fruits before eating (P<0.001). The information gathered will help public health providers and partners develop control plans in highly endemic areas in Rwanda.

Class, Family, Income and Wealth: Farming and Non-Farming Landowners in the Occupational and Social Class Orders in Turkey

This study presents the trajectory of changes in land ownership and land use and of the differences observed since the mid-1990s in the average amount of annual disposable income (and of wealth) within and between farming and non-farming landowning households in Turkey. The study makes use of the data sets of the Household Budget Surveys conducted by the Turkish Institute of Statistics (TUIK) in 1994, 2002, 2005, 2010, 2015 and 2017. The data sets have been analysed in connection with four main themes: (i) the patterns of structural change in landownership and land use, (ii) the patterns of structural change in the locations of farming and non-farming landowners in the occupational and social class orders, (iii) the patterns of changes and the persistence of differences in the average amounts of annual disposable incomes and wealth within and between the social classes of farming and non-farming landowners and (iv) the effect of family type on the differences of income and wealth. The results indicate that Turkish agrarian structures have undergone significant structural changes in the last quarter of a century, and there are persisting and significant differences of income (and of wealth) at the national level as well as among farming and non-farming landowning households. However, the same kind of differences do not hold true for differences in the average amount of farm land owned. On the contrary, these differences have strong associations with family type among farming as well as non-farming households.

Assessing the Farm–Nonfarm Households' Income Gap along the Income Distribution in the European Union

AbstractThis article investigates the presence of a farm–nonfarm income gap along the income distribution in the European Union. Our findings show that the income disparity between farm and nonfarm households varies at the opposite poles of the distribution within and between countries. On average, farm households in the lowest quartile are worse off than nonfarm households in the same quartile, whilst farm households in the highest quartile are better off than their nonfarm counterpart. We also provide some evidence on the time dynamics of the farm–nonfarm households' income gap by looking at its evolution after the Great Recession. Finally, the policy implications stemming from the results are presented. In particular, the importance of re‐directing the Common Agricultural Policy public support in two main directions: from the richest farm households to the poorest farm households, to reduce within countries' inequality, and from the richest countries to the poorest countries, to reduce between countries' inequality.

The influence of COVID-19 pandemic and coping strategies on work operation of nonfarm household enterprises in Nigeria.

The purpose of this study is to investigate how COVID-19 pandemic including some coping strategies such as hand wash with soap and food consumption influences work operation or performance of nonfarm household enterprises (NHEs) in Nigeria using 2020 Living Standard Measurement Survey data of 1728 sample size. This study departs from existing study in two ways: first, the study employs multinomial logistic regression technique to ascertain the determinants of work performance of nonfarm household enterprises in Nigeria. Second, the study focuses on nonfarm enterprises such as petty trade, road side automobile and cab drivers. The results show that COVID-19 pandemic is significant with negative influence on the work operation of NHEs in Nigeria. The result of the study also reveals that coping strategy such as hand wash with soap during the pandemic is an important driver of work performance or operation of NHEs in Nigeria. Another coping strategy like food consumption by nonfarm household enterprises shows insignificant influence on work operation which implies that there is no relationship between food consumption and work operation by NHEs in Nigeria. The policy recommendation of this study, among others, is that policies should focus on procurement of sanitary material for public use. This can be achieved through public sensitisation in terms of organising workshops and conferences.

Consumption inequality between farm and non-farm households in rural Vietnam

PurposeThis study aims to analyse the consumption inequality between farm and non-farm households in rural Vietnam, using the data from the 2016 Vietnam household living standards survey.Design/methodology/approachThe present paper applies the “recentered influence functions (RIF)” in “Oaxaca-Blinder (OB)” type decomposition as proposed by Firpo et al. (2018) to allow for the flexible distribution of the outcome variables and the non-randomness of non-farm employment that violates the classical linearity assumption.FindingsNon-farm households have significantly higher per capita consumption expenditure than farm households for the entire distribution. The gap in expenditure is large at low percentiles and narrowing with higher percentiles. At 10th percentile, the gap is estimated at 27.1%, but it is decreasing to 11.1% at 90th percentile. Most of the gaps are explained by the differences in the observed characteristics between farm and non-farm households such as ethnicity, education, income, internal transmittances and household composition. Non-farm households are endowed with more productive factors that result in higher per capita consumption expenditure.Originality/valueGaps in ethnicity and education are found to be key predictors of the inequality in consumption expenditures between farm and non-farm households, then, government policies that are aimed at increasing access to non-farm employment and education for ethnic minorities and for rural poor households are pathways to improve rural household welfare and hence reduce inequality.

Consumer finance and consumption upgrading: An empirical study of CHFS

This paper selects the China Household Finance Survey (CHFS) for 2017, 2019, and 2021. It examines the differences in the effects of consumer finance play between rural and urban areas using the final screened 9,875 households as the research sample. It is found that household savings, insurance, and stock assets are positively related to household consumption expenditure and consumption structure upgrading; household consumption credit can promote developmental consumption expenditure, and the promotion effect of consumer finance factors is more evident for non-farm households.

What is the relationship between ecosystem services and farmers’ livelihoods? Based on measuring the contribution of ecosystem services to farmers’ livelihoods

The relationships between ecosystem services and farmers’ livelihoods are important for ecological and livelihood sustainability. In this paper, Chongqing was picked up as a case to elucidate the contribution of ecosystem services to farmers’ livelihoods. First, we constructed a DPSIR (driver, pressure, state, impact and response) framework of ecosystem services and farmers’ livelihoods through participatory farmers’ livelihoods surveys and empirical data from the literature. Then, a 48-node Bayesian network model were used to explore the explicit and implicit impacts of both ecosystem services and farmers’ livelihoods, and to determine the key factors. Finally, we analyzed the contribution of ecosystem services to different types of farmers’ livelihoods. The results showed that ecosystem services have a significant impact on the farmers’ livelihoods. The probabilities of high state for ecosystem services and livelihood outcomes were 17.6% and 30.7%, respectively. While the probabilities of medium state were 51.2% and 45.4%, respectively. Particularly for low-income farmers, the impact on them increased with the increasing of ecosystem services (such as esthetic landscapes and food production). For different types of farming households, the most important contributor of ecosystem services-related income were pure farming households, part-time farming households and nonfarming households, accounting for 77.3%, 36.3%, and 14.8% of the total average annual household income, respectively. Our findings suggested that in promoting sustainable management of ecosystems, the contribution of ecosystem services to farmers’ livelihoods and their impact on farm income and the ecosystem services value should be considered.