From plough to portfolio: Occupational diversification of farmers in Odisha

Growing uncertainties in rural farming raise concerns about sustainability, prompting interest in diversification. While farmers recognize its benefits, many underutilize it, emphasizing the need to evaluate occupational diversification practices. The study attempts to answer two prominent questions, such as ‘What are the areas (range) of different occupations under different categories undertaken along with the degree to which they are diversifying across the existing categories of farmers? Odisha's Khordha and Sambalpur districts were the focus of the investigation. These districts have the highest population density of end consumers and the widest range of activities that farmers do, which makes them great places for diversification. Data were gathered through personal interviews, employing pre-tested semi-structured questionnaires. The survey analyzed the nature of occupational diversification among farmers, while Simpson’s index of diversification measured the extent of this diversification. The majority expressed occupational preference for agriculture (96.67%) and animal husbandry (64.17%) under the farm category, transportation (26.25%) and input suppliers (20.42%) under the off-farm category, followed by formal employment (36.66%) and renting activities (33.75%) under the non-farm category. The participation of marginal, small, and medium-sized farmers varied across these sectors. Most respondents (48.33%) pursued only one occupation, with others engaging in two (35.83%), three (11.67%), or four (4.17%) occupations. The majority expressed a moderate extent of diversification, whereby, in magnitude, branching out from their conventional way of monoculture within the farm category by 16.25 percent, followed by off-farm (15.42 percent) and non-farm (20.00 percent). Farmers participate in varied on-farm, off-farm, and non-farm activities, with moderate diversification prevalent among smallholders. Increasing non-farm participation offers stability but raises ecological concerns, risking resource depletion, biodiversity loss, and environmental degradation in rural contexts.