Enhancing livelihood security through diversification:Afarm level analysis in Shiwalik region in Haryana

Enterprise and crop diversification have been identified as essential strategies for raising income and reducing poverty on small and marginal farms. An attempt has been made in the present paper to measure crop and income sources diversification and to identify determinants of diversification by analysing empirical data collected from rural households located in the foothill of Shivaliks in Panchkula district of Haryana state. The analysis has been done using the Herfindhal and Entropy indices. Vegetable production constituted an important sub-sector of the agricultural economy on irrigated farm. An income and empirical relationship between the magnitude of diversification and various socio-economic factors has also been investigated. The results revealed that diversification into a number of income sources and crops grown were very high. The important dimensions of farm household resource base included irrigation facilities, availability of draught power and family labour and proximity to the market. The determinants of income diversity included proportion of working population, farm net worth, educational status and adult milking livestock units. It implied that a mix of economic and non-economic factors is essential for explaining the variation in diversification indices on different scales of farm.