Is agricultural diversification a good idea?
Whilst agricultural diversification can be lucrative, there are many factors that farms need to consider before ‘taking the plunge’. The process can be long, complex and there are limits for farmers in terms of planning permission and available funding.
What is the importance of crop diversification in India?
The agriculture sector is already crowded in India; therefore, it makes provision for additional employment in rural areas. The importance of crop diversification lies in the fact that it effectively increases soil fertility and controls pest incidences.
How can we contribute to the diversity of farming?
This land, however, can often still be used for grazing animals and, therefore, contribute to farming diversity. Adjustments in farming practices will also require access to inputs and markets and an economic incentive for producing a certain crop or livestock product.
Does farming diversification contribute to food security in Africa?
Farmers in Africa have long adapted to climatic and other risks by diversifying their farming activities. Using a multi-scale approach, we explore the relationship between farming diversity and food security and the diversification potential of African agriculture and its limits on the household and continental scale.
What is agricultural diversification?
Agricultural diversification occurs when more species, plant varieties or animal breeds are added to a given farm or farming community, and this may include landscape diversification – different crops and cropping systems interspersed in space and time.
Why is agriculture diversification important?
The importance of crop diversification lies in the fact that it effectively increases soil fertility and controls pest incidences. The boost in rural employment impacts the overall economy of the nation, as agriculture in India falls into the primary sector of the country.
What is agricultural diversification?
Agricultural diversification means adding plant varieties and species, or animal breeds, to farms or farming communities. Livelihood diversification means farming households engaging in multiple agricultural and nonagricultural activities.
Why is diversification important?
Diversification is an important means of climate change adaptation because it helps to spread the risk of climatic variability in damaging livelihoods. First, a distinction should be made between agricultural diversification and livelihood diversification (Thornton and Lipper, 2014 ).
How does livelihood diversification help?
Both agricultural and livelihood diversification are ways of managing climate risk. Since climate shocks affect different farming and nonfarming activities differently, diversification can potentially reduce the impact of these shocks on income.
Why is rice being diverted to less water intensive crops?
For example, in Tamil Nadu, rice lands are being diverted to less water-intensive crops because of the growing water scarcity. During 2000–13, rice area in Tamil Nadu decreased by more than 15%.
Why are vegetables important for agriculture?
Vegetables, fruits, and other species, including wild plants gathered for food, are often important for nutrition and dietary diversification, while multipurpose trees and other crops can contribute to agricultural diversification.
How do production incentives affect farming?
Production incentives have a dramatic effect on farming systems. Policies on land ownership, water management, and taxation reform, inter alia, have a great bearing on the types of farming system in a region or area. To protect natural resources (land, water, forests) it is essential to develop ecologically safe energy policies.
How did the government support the production of palm oil?
The government also supported the production of palm oil by allowing the use of rubber replanting grants for planting oil palm.
What is the importance of diversification in agriculture?
By every mean, Diversification in agricultural activities proves to be extremely beneficial for small farmers to increase their incomes.
What is agricultural diversification?
Agriculture Diversification refers to either a change in cropping pattern or the farmers opting for other non-farming options like poultry farming, animal husbandry, etc. This practice allows farmers to expand the production, which helps generate a higher level of income. Changing a cropping pattern implies the …
Why is crop diversification important?
The importance of crop diversification lies in the fact that it effectively increases soil fertility and controls pest incidences. The boost in rural employment impacts the overall economy of the nation, as agriculture in India falls into the primary sector of the country.
How does a small field help farmers?
Since multiple crops can be harvested from a small field, the production increases ten-fold, which ensures a substantial amount of income .
What is HVC in agriculture?
Do your research on the high-value crops (HVC) cultivated in India and how it contributes to the economical growth of the country. Almost 43.21% of people are associated with Agriculture in India, making it one of the most vital service sectors of the nation.
Why is rural farming beneficial?
It is beneficial for most rural people as they can opt for profitable supplementary employment other than agriculture. It paves the way for earning a better income and improves the standard of living.
What is non-farm employment in India?
The scope for employment in non-farm sectors in India is immense. Some of these are listed below. Livestock – It includes breeding, raising and nurturing the pastoral animals for food or raw material (like meat, milk, wool, skin, etc.) that can be used for commercial purposes.
What is agricultural diversification?
The agricultural diversification definition as described by the UK Government: ‘adds business activities to traditional farming methods to develop new sources of income’. Agricultural diversification is not a new concept, it is, however, more commonplace and broader in nature than it was years gone by. Today, around half of all UK farmers use some …
What is diversification in farming?
Diversification comes in many forms, and farmers take a differing approach depending on their geographical location, consumer demand, the physical resources of the farm in question, the agricultural finance options available and each farmer’s individual skills, knowledge, interest and confidence in branching out into new specialisms.
Why is farming diversification considered a new venture?
The main issue with financing a farm diversification project is that this type of business venture often falls outside what traditional lenders (banks and building societies) are comfortable with. This is typically because agricultural diversification is often classed as a new venture and the lender is worried about the project failing entirely or making a loss in the first five years, rather than a profit.
What should farmers do before diversifying?
Before deciding to diversify, farmers should carry out a detailed assessment of their current business and how diversification could affect turnover in the short and long term.
Why is it important to branch out a farm?
As well as making better use of a farm’s physical resources and characteristics; by branching out successfully, farmers can secure the long-term health and prosperity of their farm – and their income . This adds stability to a business in times of uncertainty and can also optimise assets and unlock entrepreneurial skills.
What are some ways farmers can make money?
Some of the most popular include: experience days (wine tasting, adrenaline-fuelled sports, living off the land, foraging and farmhouse cooking) glamping, camping and bed & breakfast. weddings and special occasions.
What are the benefits of a business?
Other benefits include: spreading farmers’ economic risk. exploiting profitable niche markets. creating new industries based on agriculture. aiding the domestic economy.
What is Crop Diversification?
Having the ability to cultivate new specifies as well as look into the possibility of using improved crop technology leads to crop diversity.
Why do You Need Crop Diversification?
Some of the major reasons why crop diversification has become the need of the hour is, is that it holds a huge range of benefits for the farmers. We will now look into the reasons and benefits of diversifying your crop growth:
Impact on Climate Change
So I will now hit on just how important it is to know why climate change is an integral element when it comes to crop diversification.
The Adaptation Module: How it works to yield stable results
The major improvement it brings to the crop cultivation system is that you don’t need to rely on just one crop growth.
A Boost on Agricultural Production
When you introduce a variety of agricultural production, it plays a huge and positive impact on your current standing for the cultivation of crops. This is because it gives a major boost to the natural biodiversity and allows for the strengthening of ecosystems.
How Can we Apply & Adapt Diversification
Farmers are able to gain a lot of advantage from the ways of adapting this technology. Some of the best ways in which it helps are:
How does diverse farming contribute to food security?
More diverse farming systems can contribute to household food security; however, the relationship is influenced by other factors , for example, the market orientation of a household, livestock ownership, nonagricultural employment opportunities, and available land resources.
What is farming diversity in Uganda?
Uganda Bureau of Statistics ( 2010 ), Wichern, Van Wijk, and Descheemaeker ( 2017 ) Farming diversity is the number of crops grown and the number of overall farming activities including livestock husbandry in a given year , irrespective of the economic importance of each activity.
How have farmers in Africa adapted to climatic and other risks?
Farmers in Africa have long adapted to climatic and other risks by diversifying their farming activities. Using a multi-scale approach, we explore the relationship between farming diversity and food security and the diversification potential of African agriculture and its limits on the household and continental scale.
Why do crops have more than one peak?
For several crops, more than one peak exists in at least one of the two crop area data sets (Table S4 ), probably as a result of genetically highly plastic crop types and/or grouping crops together with different moisture requirements or input levels. A second constraint to agriculture is rainfall variability.
Diverse by name, diverse by nature
Farm Business Survey (FBS) figures for 2015/16 indicate that 62% of farms in England have diversified in some way, action that the report describes as a “rational response” to the changing position of agriculture in the UK economy.
Broadening horizons
Andy Gage is a self-confessed entrepreneur. Ever since he inherited his grandfather’s pig and arable farm in Suffolk at the age of 19, he’s been looking for ways to expand the business and generate more income.
The core business
Diversification activities can generate significant additional income: they were worth £580 million in total in 2015/16, according to the Farm Business Survey (FBS) figures. But, as with any business venture, they require time, staff and inevitably new expertise.
Diversify or die?
With Brexit looming and a huge question mark hanging over future British agricultural policy, UK farmers are bracing themselves for more hardships over the next two years.
Why is diversification important?
Most investment professionals agree that, although it does not guarantee against loss, diversification is the most important component of reaching long-range financial goals while minimizing risk.
Why do we diversify our investments?
When you diversify your investments, you reduce the amount of risk you’re exposed to in order to maximize your returns. Although there are certain risks you can’t avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.
What is a diversified portfolio?
A diversified investment portfolio includes different asset classes such as stocks, bonds, and other securities. But that’s not all. These vehicles are diversified by purchasing shares in different companies, asset classes, and industries.
Is it better to diversify stocks or bonds?
The more uncorrelated your stocks are, the better. By diversifying, you’re making sure you don’t put all your eggs in one basket. Be sure to diversify among different asset classes, too. Different assets such as bonds and stocks don’t react the same way to adverse events.
Is diversification expensive?
Diversification can also be expensive. Not all investment vehicles cost the same, so buying and selling will affect your bottom line —from transaction fees to brokerage charges. And since higher risk comes with higher rewards, you may end up limiting your returns. Next, consider how complicated it can be.
Is it important to diversify your portfolio?
Remember, however, that no matter how diversified your portfolio is, risk can never be eliminated completely. You can reduce the risk associated with individual stocks, but general market risks affect nearly every stock and so it is also important to diversify among different asset classes.
Types of Diversification
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There are mainly two types of agricultural diversification prominent in India. They are: 1. Horizontal Diversification -This relates to multiple cropping or mix of crops instead of cultivating a single crop. Horizontal Diversification is especially useful for small farmers who hold a small piece of land. This allows them to earn more by escalating cropping intensity. 2. Vertical Diversif…
Major Features of Diversification
- Introduction of multiple or mixed cropping systems.
- Shift from sole agricultural activities to other allied enterprises like fishery, forest products, poultry and other non-agriculture sectors.
Reasons For Agricultural Diversification
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The demand for high-value crops is increasing in India, and this paves the way for farmers to experiment with several cropping combinations. Apart from that, some other reasons make diversification an excellent choice for small and marginal farmers of India. These include: 1. Climate Change -Diversification reasonably controls the damage that can o…
Benefits of Diversification
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The benefits of employing Diversification are mentioned below. 1. It helps in reducing risk factors as it ensures that the farmers do not lose all of their resources if the weather does not favor the crop production. 1. Since multiple crops can be harvested from a small field, the production increases ten-fold, which ensures a substantial amount of income. 2. The agriculture sector is al…
Kinds of Non-Farm Employment in Rural Areas
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The scope for employment in non-farm sectors in India is immense. Some of these are listed below. 1. Livestock -It includes breeding, raising and nurturing the pastoral animals for food or raw material (like meat, milk, wool, skin, etc.) that can be used for commercial purposes. It provides livelihood to over 70 million rural farmers. Livestock is also used by farmers as an instr…
Impact of Diversification
- Increase in production of high-value crops.
- Better livelihood for farmers and instrumental for lowering the poverty level.
- Scopes for varied employment.
- Empowerment of women.
What Is Meant by Agricultural Diversification?
Why Do Farmers Choose to Diversify?
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Diversification can offer additional income streams and add variety to current business models. As well as making better use of a farm’s physical resources and characteristics; by branching out successfully, farmers can secure the long-term health and prosperity of their farm – and their income. This adds stability to a business in times of uncerta…
Farm Diversification Ideas
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There are many routes a farmer can take which can bring in additional income. Some of the most popular include: 1. experience days (wine tasting, adrenaline-fuelled sports, living off the land, foraging and farmhouse cooking) 2. glamping, camping and bed & breakfast 3. weddings and special occasions 4. breweries and distilleries 5. festivals and additional outdoor events 6. farm …
What Do Farmers Need to Consider?
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When talking to professional advisers before taking the plunge and deciding to proceed with agricultural diversification, the UK Governmentsuggest that farmers need to consider: 1. why you want to diversify 2. the implications on your time, your core farm business activities, cashflow, staffing, potential liabilities etc 3. information about skills, resources and market conditions tha…
Agricultural Diversification Finance
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The main issue with financing a farm diversification project is that this type of business venture often falls outside what traditional lenders (banks and building societies) are comfortable with. This is typically because agricultural diversification is often classed as a new venture and the lender is worried about the project failing entirely or making a loss in the first five years, rather th…
Case Studies of Diversification
- Weddings
Over the past few years, the number of farms offering wedding ceremonies and receptions has increased exponentially. With engaged couples and wedding guests looking for a more affordable, quirky and innovative setting for a wedding; farmers have responded, renovating once unused fa… - Festivals
Back in 2000, the Wickerman Festival was hosted on Jamie Gilroy’s wife’s family farm.He is quoted as saying: “We live in a beautiful part of the world and I’ve always said that the beauty of a place is inversely proportionate to its earning potential,” Jamie said. “We needed to make up the …
Conclusion
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Overall, farming diversification is seen as one of the Great British success storieswhen it comes to business. By adapting, moving with the times and expanding their remit, farmers are guaranteeing that both the UK economy and the next generation have more certainty and stability. As long as farming continues to be flexible and innovative, the benefits agricultural diversificatio…