Sources and Determinants of Farm Income in Kerala: Findings from a Village Study

Authors: Sr. Sheeba Andrews

DOI: https://doi.org/10.37082/IJIRMPS.v14.i3.233090

Short DOI: https://doi.org/hb7b73

Country: India

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Abstract: This paper attempts to analyse the condition of farmers in terms of their sources of income and the determinants of farm income in the context of the extensive agricultural land conversion and the continuous decrease in the share of agricultural income in Kerala. The emergence of a non-agrarian population due to lack of profit to attract youngsters into agriculture even at the village level, this study assumes importance as to examine the sources of income of farmers and the role of education, experience, household size and possession of land and area converted for non-agricultural purposes in determining farm income. The study finds that agricultural land use plays an important role in contributing positively to farmers’ income. Whereas the agricultural land converted by farmers with non-farm income significantly reduces their farm income. The farmers with major income sources of income as remittances and salary are able to acquire more land as they invest their money on land and not so much for agriculture. They are able to acquire more loans by mortgaging land as their average debt is comparatively high. For this category land is an appreciating capital and a speculative asset which will be kept fallow, or sold for non-agricultural purposes as and when the opportunity arises. They can afford to convert their land to non-agricultural uses when the prices of the agricultural products fall. The second category of farmers is more attached to land and least interested in converting it. Their sole income is farming and is at a disadvantageous position with negative savings and with more debt which cannot be repaid with the farm income alone. Thus, the study calls forth special attention from the policy makers to concentrate on small and marginal farmers with no off- farm income and also to formulate strict rule against conversion of agricultural land to non-agricultural purposes in order to preserve the existing land for food security.

Keywords: Determinants of Farm Income, Land Use Change, Non-Farm Income, Diversification, Land Conversion, Remittances, Rural Debt,

Paper Id: 233090

Published On: 2026-06-11

Published In: Volume 14, Issue 3, May-June 2026

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