Determinants of Off-farm Activity Participation among Cotton Farmers in Punjab, Pakistan

Document Type: Original Research

Authors

College of Economics and Management, Huazhong Agricultural University, Wuhan, China

Abstract

The study was conducted to determine the aspect affecting the farmer in taking part in off-farm activities in three cotton growing districts of Punjab province, Pakistan. Since off-farm activities have become an imperative part of income strategies among rural families in developing countries like Pakistan. The data was documented from a total of 180 cotton farmers using multistage cluster sampling technique. A binary logistic model was used to evaluate the determinants motivating the farmers to participate in different off-farm activities. Various socio-economic factors were found significantly associated with probability of immersion in non-farm activities. The results of the model reveal different factors like total farming area and farmers having access to road were significant for several business activities through odds ratio 1.051 and 0.088 respectively. Though more experienced farmers with odds ratio (1.063) had more likelihood for labour activities. Lastly more educated farmers and large family size have higher probability to go for services type of off-farm activities and their odds ratio estimated is 1.297, 2.069. These findings have essential implications for policy, economic growth and development.

Keywords


Akaakohol, M. A., & Aye, G. C. (2014). Diversification and farm household welfare in Makurdi, Banue State, Nigeria. Development studies research: An Open Access Journal.
Alasia, A, Weersink, A., Bollman, R., & Cranfield, J. (2009). Off-farm labour decision of Canadian farm operator: Urbanization effects and rural labour market linkages. Journal of rural studies 25, 12-24.
Awoniyi, A. O., & Salman, K. K. (2011). Non-farm income diversification and welfare status of rural households in south west zone of Nigeria. Agricultural productivity and food security in Africa conference, Addis Ababa, November  1-3.http://addis2011.ifpri.info/files/2011/10/paper_4A_Awoniyi-Olabasi-Alaba.pdf.
Babatunde, R. O., F. I. Olagunju, S. B. Fakayode & A. O. Adejobi. (2010). Determinants of participation in off-farm employment among small-holder farming households in Kwara State, Nigeria. Production Agriculture And Technology, 6(2), 1-14.
Barrett, C. B., Reardon, T., & Webb, P. (2001). Nonfarm income diversification and household livelihood strategies in rural africa: Concepts, Dynamics and Policy Implications. Food Policy, 26(4), 315-331.
Dary, S. K., & Kunnibe, N. (2012). Participation in rural non-farm economic activities in Ghana. American International Journal of Contemporary Research. Vol.2 No.8; August 2012.
De Janvry, A., & Sadoulet, E. (2001). Income Strategies Among Rural Household In Mexico: The Role of Off-farm Activities. World Development 29(3): 467-480.
De Janvry, A., Sadoulet, E., & Zhu, N. (2005). The role of non-farm incomes in reducing rural poverty and inequality in china (CUDARE working paper no 1001). Department of Agricultural and Resource Economics, University of California, Barkeley. Retrieved April 25, 2015, from http://repositories.cdlib.org/are ucb/1001.
Ellis, F. (1998). Household strategies and rural livelihood diversification. Journal of Development Studies 35(1): 1-38.
Fernandez-Cornejo, J. (2007). Off-farm income, technology adoption and farm economic performance. Economic Research Report No. ERR-36, February 2007 Economic Research Service, U.S. Department of Agriculture, Washington, D.C. http://www.ers.usda.gov/publications/err-economic-research-report/err36.aspx
GOPun, (2012). Punjab Development Statistics. Bureau of Statistics. Government of Punjab, Lahore. Retrieved from http://121.52.153.178:8080/xmlui/handle/123456789/13022.
GOPun. (2015). Punjab Agricultural Department. Government of Punjab, Pakistan. Retrieved May 5, 2015, from http://www.agripunjab.gov.pk/overview
Gordon, A., & Graig, C. (2001). Rural non-farm activities and poverty alleviation in sub-saharan Africa. Policy series 14. Chatham, UK: Natural Resources Institute.
Haggblade, S., Hazell, P., & Reardon, T. (2010). The Rural non-farm economy: Prospects for growth and poverty reduction. World Development, 38(10), 1429-1441.
Haggblade, S., Hazell, P., & Reardon, T. (Eds.), (2007). Transforming the rural nonfarm economy: opportunities and threats in the developing world. Johns Hopkins University Press and IFPRI, Baltimore. Retrieved from http://www.ifpri.org/publication/transforming-rural-nonfarm-economy-0?print
Hill, L., & Kau, P. (1973). Application of multivariate probit to a threshold model of grain dryer purchasing decisions. American Journal of Agricultural Economics, 55, 19-27.
Isgut, A.E. (2004). Nonfarm income and employment in rural Honduras: Accessing the role of locational factors. Journal of development studies, Vol.40, No. 3, February 2004, pp 59-86.
Jolliffe, D. (2004). The Impact of Education in Rural Ghana: Examining Household Labour Allocation and Returns on and off the farm. Journal of Development Economics, 73, 287-314.
Kilic, T., Carletto, C., Miluka, J., & Savastano S. (2009). Rural non-farm income and its impact on agriculture: evidence from Albania. Agricultural Economics, 40(2), 139-160.
Lanjouw, P. (2001). Rural non-agricultural sector and poverty in EI Salvador. World Development, 29(3): 529-527.
Oluwatayo, I. B. (2009). Poverty and income diversification among household in rural Nigeria: A gender analysis of livelihood patterns. Paper presented at the 2nd instituto de Estudos Sociais de Economicos (IESE) conference on dynamics of poverty and patterns of economic accumulation, Mozambique, April 22-23, 2005,1-21. http://www.iese.ac.mz/lib/publication/II_conf/CP41_2009_Oluwatayo.pdf
Rahman, M. S. (2013). Socio-Economic determinants of off-farm activity participation in Bangladesh. Russian Journal of Agricultural and Socio-Economic Sciences, 1 (13).
Reardon, T. (1997). Using evidence of household income diversification to inform study of the rural nonfarm labour market in Africa. World Development 25(5): 735-738.
Reardon, T., Delgado, C.L., & Matlon, P., (1992). Determinants and effects of income diversification amongst farm households in Burkina Faso. Journal of Development Studies 28 (1), 264-296.
Ruben, R., & Van den Berg, M. (2001). Nonfarm employment and poverty alleviation of rural farm households in Honduras. World Development 29(3): 549-560.
Stampini, M. & Davis, B. (2009). Does non-agricultural labour relax farmer’s credit constraint? evidance from longitudinal data for Vietnam. Agricultural Economics, 40(2), 177-188.
Weijland H. (1999). Microenterprise clusters in rural Indonesia: Industrial seedbed and policy target. World Development, 29(9): 1515-1530.