Title: Processes of diversification: A case study of district Kangra
Abstract: In agrarian economies where credit and insurance_markets are not fully developed, diversification of crop enterprises and sources of off-farm income and employment are the most important strategies adopted by the rural households to combat the crop risk and stabilize their income and consumption. Farm households that are risk averse will diversify their sectoral income to reduce overall risk. Diversification means selecting a good number of enterprises in order to bear/ overcome the risk or to achieve regular income (reduce the income variability). The mix of enterprises in the farm plan with the sole objective of maximizing profits without giving any consideration to reduce the income variability for safeguarding the risk and uncertain situation might itself involve some diversification. But, diversification can be further extended to reduce the income variability and this part of diversification carries the cost component in terms of reduction in the average income of the farmer which is weighed against the marginal (or additional) satisfaction (return) of being safe (or having relatively more income).
Publication Year: 1998
Publication Date: 1998-01-01
Language: en
Type: dissertation
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