Mitigating Risk and Augmenting Farmer’s Income through Livelihood Diversification Framework

Authors

  • K. J. Srinivas Research Scholar, Department of Management and Commerce, Sri Sathya Sai Institute of Higher Learning, Prasanthi Nilayam, Anantapur, AP.
  • B. Sai Giridhar Professor, Department of Management and Commerce, Sri Sathya Sai Institute of Higher Learning, Prasanthi Nilayam, Anantapur, AP.

DOI:

https://doi.org/10.25175/jrd/2022/v41/i2/157590

Keywords:

Livelihood Diversification, Income Augmentation, Livelihood Diversification Framework, Sustainable Rural Development

Abstract

Literature suggests various ways to augment the income levels of farmers, and livelihood diversification is one among such approaches. However, risk is a critical factor that drives a farmer to diversify. The returns of a farmer are influenced by the amount of risk undertaken. In this paper, efforts have been made to understand various factors that play a key role in coping with risk and possibilities to augment income through diversification, sustaining the income earned, and so on. Though diversification is an established strategy to boost income, this paper presents a systematic approach to diversification and managing risk through the livelihood diversification framework (LDF). The systematic approach paves the way to make livelihood diversification a non-distress-driven strategy through various interventions.

Downloads

Download data is not yet available.

Downloads

Published

2023-05-11

How to Cite

Srinivas, K. J., & Giridhar, B. S. (2023). Mitigating Risk and Augmenting Farmer’s Income through Livelihood Diversification Framework. Journal of Rural Development, 41(2), 155–170. https://doi.org/10.25175/jrd/2022/v41/i2/157590

Author Biography

K. J. Srinivas, Research Scholar, Department of Management and Commerce, Sri Sathya Sai Institute of Higher Learning, Prasanthi Nilayam, Anantapur, AP.

Doctoral research Fellow, Department of Management and Commerce

References

Abdulai, A., & CroleRees, A. (2001). Determinants of Income Diversification amongst Rural Households in Southern Mali. Food Policy, 26(4), 437–452. DOI: https://doi.org/10.1016/S0306-9192(01)00013-6

Alobo Loison, S. (2015). Rural Livelihood Diversification in Sub-Saharan Africa: A Literature Review. Journal of Development Studies, 51(9), 1125–1138. DOI: https://doi.org/10.1080/00220388.2015.1046445

Alobo Loison, S. (2019). Household Livelihood Diversification and Gender: Panel Evidence from Rural Kenya. Journal of Rural Studies, 69(March), 156–172. DOI: https://doi.org/10.1016/j.jrurstud.2019.03.001

Bardhan, P. K. (1973). Size, Productivity, and Returns to Scale: An Analysis of Farm-Level Data in Indian Agriculture. Journal of Political Economy, 81(6), 1370–1386. DOI: https://doi.org/10.1086/260132

Barrett, C. B., Bezuneh, M., & Aboud, A. (2001). Income Diversification, Poverty Traps and Policy Shocks in Côte d’Ivoire and Kenya. Food Policy, 26(4), 367–384. DOI: https://doi.org/10.1016/S0306-9192(01)00017-3

Barrett, C. B., Reardon, T., & Webb, & P. (2001). Non-farm Income Diversification and Household Livelihood Strategies in Rural Africa: Christopher B. Barrett. Concepts, Dynamics, and Policy Implications, 26, 315–331. DOI: https://doi.org/10.1016/S0306-9192(01)00014-8

Bigsten, A. (1996). The Circular Migration of Smallholders in Kenya1. Journal of African Economies, 5(1), 1–20. DOI: https://doi.org/10.1093/oxfordjournals.jae.a020893

Cinner, J. E., Mc Clanahan, T. R., & Wamukota, A. (2010). Differences in Livelihoods, Socioeconomic Characteristics, and Knowledge about the Sea between Fishers and Non-fishers Living Near and Far from Marine Parks on the Kenyan Coast. Marine Policy, 34(1), 22–28. DOI: https://doi.org/10.1016/j.marpol.2009.04.003

Davis, J. R. (2003). The Rural-Non-Farm Economy, Livelihoods and their Diversification: Issues and Options. SSRN Electronic Journal. DOI: https://doi.org/10.2139/ssrn.691821

Dercon, S. (2002). Income Risk, Coping Strategies, and Safety Nets. The World Bank Research Observer, 17(2), 141–166. DOI: https://doi.org/10.1093/wbro/17.2.141

Ellis, F. (1998). Household Strategies and Rural Livelihood Diversification. Journal of Development Studies, 35(1), 1–38. DOI: https://doi.org/10.1080/00220389808422553

Ellis, F. (2008). The Determinants of Rural Livelihood Diversification in Developing Countries. Journal of Agricultural Economics, 51(2), 289–302. DOI: https://doi.org/10.1111/j.1477-9552.2000.tb01229.x

Fahy Bryceson, D. (1996). Deagrarianization and Rural Employment in Sub-Saharan Africa: A Sectoral Perspective. World Development, 24(1), 97. DOI: https://doi.org/10.1016/0305-750X(95)00119-W

Haggblade, S., Hazell, P. B. R., & Reardon, T. (2007). Transforming the Rural Nonfarm Economy: Opportunities and Threats in the Developing World. Johns Hopkins University Press.

Hall, M. (Ed.). (2001). Farming Systems and Poverty Farming Systems and Poverty (1st ed.). Food & Agriculture Organization of the United Nations (FAO).

Jiao, X., Pouliot, M., & Walelign, S. Z. (2017). Livelihood Strategies and Dynamics in Rural Cambodia. World Development, 97, 266–278. DOI: https://doi.org/10.1016/j.worlddev.2017.04.019

Jones, H. M. (2008). Livelihood Diversification and Moneylending in a Rajasthan Village: What Lessons for Rural Financial Services? The European Journal of Development Research, 20(3), 507–518. DOI: https://doi.org/10.1080/09578810802245568

Kassie, G. W. (2018). Agroforestry and Farm Income Diversification: Synergy or Trade-Off? The Case of Ethiopia. Environmental Systems Research, 6(1). DOI: https://doi.org/10.1186/s40068-017-0085-6

Kassie, G. W., Kim, S., Fellizar, F. P., & Ho, B. (2017). Determinant Factors of Livelihood Diversification: Evidence from Ethiopia. Cogent Social Sciences, 3(1), 1–16. DOI: https://doi.org/10.1080/23311886.2017.1369490

Liu, Z., & Liu, L. (2016). Characteristics and Driving Factors of Rural Livelihood Transition in the East Coastal Region of China: A Case Study of Suburban Shanghai. Journal of Rural Studies, 43, 145–158. DOI: https://doi.org/10.1016/j.jrurstud.2015.12.008

Makita, R. (2016). Livelihood Diversification with Certification-supported Farming: The Case of Land Reform Beneficiaries in the Philippines. Asia Pacific Viewpoint, 57(1), 44–59. DOI: https://doi.org/10.1111/apv.12106

Malmberg, B., & Tegenu, T. (2007). Population Pressure and Dynamics of Household Livelihoods in an Ethiopian Village: An Elaboration of the Boserup-Chayanovian Framework. Population and Environment, 29(2), 39–67. DOI: https://doi.org/10.1007/s11111-007-0060-7

Martin, S. M., & Lorenzen, K. (2016). Livelihood Diversification in Rural Laos. World Development, 83, 231 –243. DOI: https://doi.org/10.1016/j.worlddev.2016.01.018

Niehof, A. (2004). The Significance of Diversification for Rural Livelihood Systems. Food Policy, 29(4 SPEC.ISS.), 321–338. DOI: https://doi.org/10.1016/j.foodpol.2004.07.009

Phillipo, F. B. M. (2015). Adaptation Strategies to Climate Variability and Change and Its Limitations to Smallholder Farmers. A literature Search. Asian Journal of Agriculture and Rural Development, 5(3), 77–87.

Reardon, T. (1997). Using Evidence of Household Income Diversification to Inform Study of the Rural Nonfarm Labor Market in Africa. World Development, 25(5), 735–747. DOI: https://doi.org/10.1016/S0305-750X(96)00137-4

Reardon, T., Delgado, C., & Matlon, P. (1992). Determinants and Effects of Income Diversification Amongst Farm Households in Burkina Faso. The Journal of Development Studies, 28(2), 264–296. DOI: https://doi.org/10.1080/00220389208422232

Saha, B., & Bahal, R. (2012). Constraints Impeding Livelihood Diversification of Farmers in West Bengal. Indian Research Journal of Extension Education, 12(2), 59–63.

Start, D. (2001). The Rise and Fall of the Rural Non-farm Economy: Poverty Impacts and Policy Options. Development Policy Review, 19(4), 491–505. DOI: https://doi.org/10.1111/1467-7679.00147

Taylor, J. E., & Wyatt, T. J. (1996). The Shadow Value of Migrant Remittances, Income and Inequality in a Household-farm Economy. Journal of Development Studies, 32(6), 899–912. DOI: https://doi.org/10.1080/00220389608422445

Wang, N., Gao, Y., Wang, Y., & Li, X. (2016). Adoption of Eco-Friendly Soil-Management Practices by Smallholder Farmers in Shandong Province of China. Soil Science and Plant Nutrition, 62(2), 185–193. DOI: https://doi.org/10.1080/00380768.2016.1149779

Whetten, D. A. (1989). What Constitutes a Theoretical Contribution? Academy of Management Review, 14 (4), 490-495. DOI: https://doi.org/10.5465/amr.1989.4308371