A Quest for Livelihood Sustainability? Patterns, Motives and Determinants of Non-Farm Income Diversification among Agricultural Households in Punjab, Pakistan

Muhammad Amjed Iqbal, Muhammad Rizwan, Azhar Abbas, Muhammad Sohail Amjad Makhdum, Rakhshanda Kousar, Muhammad Nazam, Abdus Samie and Nasir Nadeem
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Muhammad Amjed Iqbal: Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad 38040, Pakistan
Muhammad Rizwan: School of Economics and Management, Yangtze University, Jingzhou 434023, China
Azhar Abbas: Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad 38040, Pakistan
Muhammad Sohail Amjad Makhdum: Department of Economics, Government College University Faisalabad, Faisalabad 38000, Pakistan
Rakhshanda Kousar: Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad 38040, Pakistan
Muhammad Nazam: Institute of Business Management Sciences, University of Agriculture, Faisalabad 38040, Pakistan
Abdus Samie: Institute of Agricultural and Resource Economics, University of Agriculture, Faisalabad 38040, Pakistan
Nasir Nadeem: Department of Agribusiness and Applied Economics, Muhammad Nawaz Shareef University of Agriculture, Multan 60000, Pakistan

Sustainability, 2021, vol. 13, issue 16, 1-14

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.

Keywords: adaptation; sustainability; community support; business; start-up; profitability; constraints (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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