Agriculture Reference
In-Depth Information
general conclusions to be drawn on the impact of non-farm income on inequality
(Haggblade et al. 1989; Lanjouw and Lanjouw 2001). Analyses of the factors influ-
encing individuals' participation in non-farm employment shows that household endow-
ments (land, labour and capital) and individual characteristics, mainly education and
gender, play important roles (Ezumah and Di Domenico 1995; Ruben and Van den
Berg 2000). Finally, investments in non-farm opportunities are often related to ethnic
or kin ties, limiting access to non-farm opportunities to certain subsets of a rural
population. The involvement in rural non-farm employment activities for households
or individuals, thus, strongly varies temporally, spatially and socially (Start 2001).
It is assumed that an increase in non-agricultural income will lead to increased
demand for agricultural goods for consumption and investment (FAO 2002).
However, to our knowledge, the impact of non-farm income on (specific) investments
in agriculture has not been investigated extensively. This last issue has implications
for the natural resource base. Intensification of agriculture (to attain higher yields
per unit of land and labour) is seen as a necessary step to support population growth
and reduce the pressure on land (especially on natural areas). Soil degradation
through nutrient depletion is a major factor underlying declining yields. The use
of fertilizer is constrained by various factors, such as limited availability (because of
lack of infrastructure) and lack of purchasing power of farmers. Closer proximity
to urban areas and an increase in non-farm income could alleviate these constraints
and thus contribute to increasing soil fertility.
There are several factors to be considered in how non-farm income is spent. Firstly,
when access to non-farm opportunities depends on skills, wealth, gender, class and
race, members within the same household may have different opportunities. Enrolment
rates in schools are higher for boys than for girls, and male household members are,
therefore, likely to have higher education rates than female household members,
thus, increasing their non-farm employment opportunities. This means that the
involvement in non-farm activities may be gender-segregated within a household.
This raises the question what implications there are for expenditure of non-farm
income within the household. Can all family members (or husband and wife) decide
on how this income is spent, or do the family members (or husband and wife) have
'separate purses' (as is the case in many African countries).
Secondly, there is the question whether farm households decide to invest non-
farm income in agricultural activities, or spend it on strategies that will increase the
opportunities for increased non-farm income. Put differently, are rural households
investing in agricultural activities to intensify their farming system, or are they
investing in strategies out of agriculture?
DATA DESCRIPTION
Differences in non-farm employment opportunities will imply differences in the
impact of non-farm income on sustainability indicators. A unique dataset collected
in six countries in Africa and Asia allows us to explore links between non-farm
employment, agricultural practices and sustainability indicators. Data have been
combined from five multi-disciplinary DLO-IC research projects addressing
sustainability issues in developing countries. The data were all collected using the
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