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To assess the role of off-farm and on-farm income sources, a study was conducted in all the four zones of J&K; 63 villages were selected randomly, and 10 farmers were selected randomly from each selected village. It was found that 587 respondents engaged in both on-farm and off-farm economic activities, whereas only 43 respondents were exclusively dependent on on-farm income. The very few households dependent exclusively on on-farm income were more illiterate than households having both sources of income but had more farming experience and on-farm income.