Urban sprawl and farming practices: Examining farm diversification and its intensity in Hyderabad’s peri-urban areas

Abstract Background: Urban expansion exerts substantial pressures on peri-urban agriculture, including land reduction, resource competition, and environmental externalities, necessitating adaptive strategies such as farm diversification. Despite its role in enhancing resilience and sustainability, there is a paucity of research that simultaneously explores diversification, its intensity, and the drivers shaping these adaptations, particularly in urbanizing contexts. Methods: This study explores the dual decision making process of diversification – diversification choice and its intensity – among peri-urban farmers in Hyderabad, India. Drawing on survey data from 330 farm households collected through a multi-stage sampling method, the analysis employs the Double Hurdle Model (DHM) to capture the nuanced effects of farm characteristics, environmental factors, and risk perceptions, while accounting for potential variations in the direction and magnitude of these effects. Results: The results demonstrate that initial decisions to diversify are significantly influenced by socio-environmental factors, such as proximity to urban areas, sole reliance on agriculture for income, household size, and risk attitudes. Conversely, the intensity of diversification is largely determined by farm-specific resource conditions, such as soil fertility, alongside farmers’ subjective assessments of production and market uncertainties. These findings suggest that while diversification choices are primarily shaped by external socio-economic drivers, the extent of diversification reflects a strategic response to resource limitations and perceived risks, underscoring the crucial role of risk management in shaping agricultural practices. Conclusion: Peri-urban farms in India are transitioning toward diversification, albeit at low intensity, particularly among small and semi-medium landholdings. Policy interventions should prioritize supporting diversified farming, ensuring risk-appropriate returns, and conserving resources to foster sustainable, resilient agricultural systems in peri-urban areas.