Income Diversification: Its Determinants and Role among Farmer Households in Kerala

Abstract

The article is about the determinants and effect of income diversification among the farmer households in three districts of Kerala. The findings in the article reveal that diversification of income is widely practised by the farmer households to reduce the risk of income loss and livelihood failure. In a bid to overcome the frequent price shocks and the consequent uncertainties, coping strategies like out-migration and sale of assets have been used by the distressed farmer households in the state. Further, diversification as a strategy does make a positive impact upon the income of the rural farmer households. It is thus an effective risk management system to ensure livelihood security and a possible way out of vulnerability.