RURAL LIVELIHOODS: INTERPLAY BETWEEN FARM ACTIVITIES, NON-FARM ACTIVITIES AND THE RESOURCE BASE - Science for Agriculture and Rural Development in Low-income Countries - page 91

Targeted policies need to be based on the recognition that rural economies are by
no means homogenous and nor are rural households. Raising agricultural productivity
has been an important objective for a long time, and will continue to be so in the
future. However, this is not feasible, and may not even be desirable, everywhere.
(Biophysically) high-potential areas should be identified, where intensive agriculture
is possible and profitable, and increasing agricultural (land and/or labour) productivity
in these areas should include a pro-poor growth strategy. At the same time, however,
the reality of a rural economy in transition, towards one in which non-farm activities
play a major role, should be accepted. Facilitating and stimulating profitable non-
farm employment should be on the agenda of policymakers, for instance by support-
ing the informal sector. Policymakers need to formulate agricultural policies that are
designed for a farming sector that is extensively managed, that serves as only one
among many sources of income, and from which no high productivity gains, but
foremost a stable supply of food and income is expected. The relevant focus is
different groups of households and not so much the entire sector. Households are, by
manner of speaking, the node in which the farm sector and non-farm sectors interact.
The analysis has raised some important issues, which link up with the renewed
interest in non-farm activities. This interest has a long history. While many questions
are still open, it is clear that non-farm activities constitute an important component
of rural economies and therefore should be considered an integral part of analysis
and policy aimed at sustainable rural development.
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