Drivers of Farmers' Income: The Role of Farm Size and Diversification

Varun Das and Anand Ganesh-Kumar

Working Papers from eSocialSciences

Abstract: The study finds that a U-shaped relationship exists between farm size and farm / farmer's income. The results also show that both on-farm and off-farm diversification have an inverted U-shape relationship with farm / farmer's income. That is, diversification up to some level helps improve income but excessive diversification might lead to misallocation of resources and hence a fall in income. The results also show that engagement in public works programme such as MGNREGA has an adverse impact on farm / farmer's income, possibly due to the opportunity cost of time spent in such programmes. Finally, positive effect of education on income is seen only at somewhat high education levels.

Keywords: Farm size; farm income; farmer's income; on-farm / off-farm diversification; U-shaped relationship; resources; public works programme; MGNREGA; opportunity cost; EDUCATION; high education levels. (search for similar items in EconPapers)
Date: 2017-09
Note: Institutional Papers
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Working Paper: Drivers of farmers' income: The role of farm size and diversification (2017)
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