Impact of off-farm income on food security and nutrition in Nigeria

While the poverty implications of off-farm income have been analyzed in different developing countries, much less is known about the impact of off-farm income on household food security and nutrition. Here, this research gap is addressed by using farm survey data from Nigeria. Econometric analyses are employed to examine the mechanisms through which off-farm income affects household calorie and micronutrient supply, dietary quality, and child anthropometry. We find that off-farm income has a positive net effect on food security and nutrition. The prevalence of child stunting, underweight, and wasting is lower in households with off-farm income than in households without. Using a structural model, we also show that off-farm income contributes to higher food production and farm income by easing capital constraints, thus improving household welfare in multiple ways. --Farm households,Food security,Micronutrients,Off-farm income

Off-farm Income and Investments in Farm Assets: A Double Hurdle Approach

The farm household structure is a complex set of inter-relationships between and among a variety of internal and external factors involving consumption, investment, and income-earning activities. In this paper we use ARMS data to explore the contribution of off-farm income to the viability of the farm business. We focus on the link between off-farm income and farm investment and whether off-farm income drives on-farm investment. The results indicate the importance of farm characteristics such as type, size, and location on the probability of investment but lead us to reject the hypothesis that off farm income is driving farm investment. Further research will be needed to further unweave some of the complex relationships involved in the farm household structure. Keywords: Farm investments, off-farm income, double hurdleOff-farm income, farm investment, double hurdle, Agricultural Finance, Financial Economics, D1, J2, Q12,

An Examination of the contribution of off-farm income to the viability and sustainability of farm households and the productivity of farm businesses

End of project reportThe number of farm households in Ireland participating in the off-farm labour market has increased significantly in the last decade. According to the National Farm Survey (NFS), the number of farm households where the spouse and/or operator is working off-farm has increased from 37 per cent in 1995 to 58 per cent in 2007. The important contribution of non-farm income to viability of farm households is highlighted in the results of the Agri-Vision 2015 report, which concluded that the number of economically viable farm businesses is in decline and that a significant proportion of farm households are sustainable only because of the presence of off-farm income. Research conducted by Hennessy (2004) demonstrated that approximately 40 percent of farm households have an off-farm income and that almost 30 percent of the farming population are only sustainable because of off-farm income. Clearly, the future viability and sustainability of a large number of farm households depends on the ability of farmers and their spouses’ to secure and retain gainful off-farm employment. The Department of Agriculture, Fisheries and Food (DAFF) have recognised the importance of off-farm income to the sector and they have recommended that future policies focus on farm household viability in all its dimensions, including farm and off-farm income sources (2000).Funded by the Department of Agriculture, Fisheries and Food Research Stimulus Fundin

Factors Affecting Variability in Farm and Off-farm Income

The purpose of this paper is to examine the factors affecting the relative variability in farm and off-farm income for Canadian farm operators. Previous attempts have been limited by the lack of available data combining both farm and off-farm income levels for farm operations over time. Statistic Canada’s Farm Micro-Longtidinal Dataset of 17,000 farm operators from 2001 to 2006 allowed such an analysis. The coefficient of variation (CV) in farm income is significantly greater than that for off-farm income but both measures are inversely related to the permanence of the income source to the operation. The greater the reliance on farm income and the greater the labour demand within the farm, the lower (greater) the relative variability in farm (off-farm) income. Larger commercial operations tend to experience larger farm income volatility either because they are less risk averse and/or have the ability to manage more risk. Diversification and off-farm employment appear to be substitute for risk management strategies for commercial operations. Pension and lifestyle farms have lower coefficient of variation for both farm and off-farm income compared to business-focused farms since they are possibly more risk averse and benefit from a permanent stream of off-farm revenue. Government payments have mixed effects on the relative variability of both income sources, which may be due the lag between the time of the income reduction and the time at which the aid is received.Relative variability, farm and off- farm income, Agricultural and Food Policy,

Off-Farm Employment Effects on Adoption of Nutrient Management Practices

Off-farm income as a share of total farm household income has been increasing. Previous studies found inconsistent results regarding the impact of off-farm income on adoption of conservation practices. We test the hypothesis that off-farm employment has a positive impact on adoption of capital incentive practices and a negative impact on adoption of labor-intensive practices. The results confirm that adoption of injecting manure into the soil, a capital intensive practice, is positively and significantly impacted by off-farm employment of the operator. However, off-farm employment variables had no effect on adoption of record keeping.adoption, nutrient management, off-farm income, Environmental Economics and Policy, Livestock Production/Industries,

DECOMPOSITION OF INCOME DISTRIBUTION AMONG FARM FAMILIES

The greater reliance of U.S. farm families on off-farm income has implications for the structure of agriculture and the distribution of income within agriculture. Using annual data on farm households from the Current Population Survey, the degree of income inequality for the U.S. and by region is assessed for 1984. The distribution of income among farm families is decomposed by income source. Off-farm income is shown to contribute to higher average incomes and reduce income inequality at the margin, but only in regions where full-time farming predominates. In the Northeast and South, increases in off-farm income increase regional income inequality.Consumer/Household Economics,

Impact of Off-farm Income on Food Security and Nutrition in Nigeria

Reducing food insecurity in the developing world continues to be a major public policy challenge, and one that is complicated by the lack of a generalized comprehensive strategy for dealing with it. Around 854 million people are undernourished worldwide, many more suffer from micronutrient deficiencies, and the absolute numbers tend to increase further, especially in Sub-Saharan Africa. Recent food price hikes have contributed to greater public awareness of hunger related problems, also resulting in new international commitments to invest in developing country agriculture. Whereas agriculture-led growth played an important role in reducing food insecurity and transforming the economies of many Asian and Latin American countries, the same has not yet occurred in Africa. Most countries in Africa have not yet met the criteria for a successful agricultural revolution, and factor productivity lags far behind the rest of the world. This has led to growing skepticism in the international development discourse about the relevance of agriculture to food security in the region. As a result, the promotion of off-farm activities as a pathway out of food insecurity has gained widespread support among development agencies and non-governmental organizations. So far, relatively little policy efforts have been made to promote the off-farm sector in a pro-poor way and overcome potential constraints in countries of Sub-Saharan Africa. One reason is probably the dearth of solid and up-to-date information about the impact of off-farm income on food security and nutrition in specific context. While the poverty implications of off-farm income have been analyzed in different developing countries, much less is known about the impact of off-farm income on household food security and nutrition. 2 This paper analyzes the role of off-farm income in enhancing food security and nutrition for households in rural Nigeria. The analysis builds on a survey of 220 households in Kwara State, which was conducted in 2006. Food consumption data were elicited through a 7-day recall, covering 105 food items. The food consumption data are supplemented by anthropometric measurements that we took from pre-school children up to 60 months of age. In the 220 sample households, we obtained weight and height data from 127 children. Different Econometric analyses are employed to examine the mechanisms by which off-farm income affects household calorie and micronutrient supply, dietary quality, and child anthropometry. We hypothesize that off-farm income contributes to better nutrition in terms of calorie and micronutrient supply and child anthropometry. Issues of endogeneity are taken into account by using instrumental variable approaches. Both descriptive analyses and econometric approaches showed that off-farm income contributes to improved calorie supply at the household level. We find that off-farm income has a positive net effect on food security and nutrition, which is in the same magnitude as the effect of farm income. We also show that the prevalence of stunting and underweight is remarkably lower among children in households with off-farm income. Accordingly, improving poor households’ access to the off-farm sector can contribute to reducing problems of rural malnutrition. Our results demonstrate that both farm and off-farm activities can equally contribute to better food security and nutrition. Yet, while investing into agricultural growth is currently featuring high on the development policy agenda, promoting the rural off-farm sector receives much less attention. This should be rectified, especially in regions where agricultural resources are becoming increasingly scarce. Using a structural model, we also show that off-farm income contributes to higher food production and farm income by easing capital constraints, thus improving household welfare in multiple ways. Off-farm income diversification is already an extensive phenomenon 3 among rural households in developing countries. But without a clear policy strategy on how to support this process in a pro-poor way, outcomes might socially undesirable, because of unequal household access to certain off-farm activities.Farm households, food security, micronutrients, child anthropometry, off-farm income, Food Security and Poverty,

OFF-FARM LABOR AND THE STRUCTURE OF U.S. AGRICULTURE: THE CASE OF CORN/SOYBEAN FARMS

While the growing importance of off-farm earnings suggests large benefits accrue to farmers from efforts to expand off-farm income opportunities, survival still depends on greater efficiency. To comprehensively gauge the economic health of farm operator households we interpret off-farm income as an output along with corn, soybeans, livestock, and other crops. To accomplish this task we use two related methodologies. First, using 2000 data, we setup a multiactivity cost function to analyze labor allocation decisions within the farm operator household and also to estimate returns to scale and scope. Second, using 1996-2000 data, we follow an input distance function approach to estimate returns to scale, technical progress, cost economies, and technical efficiency--and compare the relative performance of farm operator households with and without off-farm wages and salaries. Our preliminary results suggest that over our sample period, scale economies are a primary factor driving up farm operator household size and decreasing the competitiveness of small farm operator households in the base farm operator household model where off-farm income is constrained to zero. But small farm operator households appear to achieve efficiency levels more comparable to larger farm operator households when off-farm income is accommodated. The evidence therefore suggests that while short-falls in these productivity components are decreasing the competitiveness of small farm operator households as agricultural structure changes, corn/soybean farm operator households have partially adapted to such pressures by increasing off-farm income and, therefore, achieving economies of scope.Labor and Human Capital,

Off-farm income and risk reduction in agriculture: when does it matter?

Investment behavior is analyzed using a dynamic portfolio model including off-farm income. The correlation structure of off-farm income and asset returns and the ratio of off-farm income to wealth is shown to affect portfolio choice. Empirical analysis indicates that off-farm income tends to increase farm assets.Agriculture ; Farm income ; Wages

Agricultural Household Hedging With Off-Farm Income

Agricultural Finance, Risk and Uncertainty,