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Why is adding non-farm income considered useful in agriculture-based livelihood?

Answer and explanation

Correct answer: It provides financial support when crop income is uncertain

Farm income may be affected by rainfall, drought, pests, crop loss, and fluctuating market prices. Non-farm work such as crafts, wage work, or a small business gives the household an additional income source and reduces financial risk. It does not mean that farming must be stopped; the aim is to diversify income sources. Exam tip: link this idea with ‘income diversification’ and ‘risk reduction’.

Related tags

AgricultureNon-Farm IncomeIncome DiversificationRural LivelihoodsLivelihood SecurityRisk ReductionTraditional Occupations In India AgricultureWorkLivelihood And Career

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