Study about Income Diversification: An Approach to Farm Family Household in Different Agro-climatic Zone of J&K, UT

The diversification of a portfolio is an alternative strategy for households to minimize their income variability and to ensure a minimum level of income. Multi-stage sampling, binary logistic regression and logit regression design were used for the study. The study was conducted in Jammu & Kashmir State (Union Territory) in the year of 2016-17 with a total sample size of 630 farming families drawn from the four agro-ecological zones. From each selected villages, 15 farming families were drawn randomly without replacement and out of 15 farm families only 10 families were retained for analysis. The result revealed that mean age of farming families in sub-tropical, intermediate, temperature and cold-arid zone was 53, 50, 47 and 51 years respectively and educational level of middle pass was 24.40 percent from the total sample size of 630. Majority of the household (78.40%) did not diversify their off-farm activities and very least percent had high level of income diversification (1.90%) from off-farm activities. An average gross income from on-farm enterprise was Rs. 77,623 per annum and from off-farm activities the average income was Rs. 1,17,643 per annum. Education, size of family members and fragmented land holdings were the push factors which motivated the farming family households to diversify towards other activities. The study further suggested that there is a need to develop education and skill development training among the farm family households, as it will surely provide a positive impact on the ability to diversify their other livelihood options.