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

Author

Listed:
  • Varun Kumar Das

  • A. Ganesh Kumar

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.

Suggested Citation

  • Varun Kumar Das & A. Ganesh Kumar, 2017. "Drivers of Farmers' Income: The Role of Farm Size and Diversification," Working Papers id:12104, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:12104
    Note: Institutional Papers
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    Cited by:

    1. Orlando Cimino & Francesca Giarè & Roberto Henke, 2025. "Periurban Agriculture and Organic Farming: Investigating Synergies and Policy Implications," Land, MDPI, vol. 14(4), pages 1-27, March.

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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q15 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Land Ownership and Tenure; Land Reform; Land Use; Irrigation; Agriculture and Environment
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy; Animal Welfare Policy

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