Farming Based Livelihood Systems English Notes

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(AGRO 112) Farming Based Livelihood Systems 3 (2+1)
Name:

Farming Based Livelihood Systems Notes By “Akhil Agriculture”
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Objective:
1. To make the students aware about farming-based livelihood systems in agriculture.
2. To disseminate the knowledge and skill how farming-based systems can be a source
of livelihood.
Theory:
Unit - 1
Status of agriculture in India and different states, Income of farmers and rural people in
India, Livelihood - Definition, concept and livelihood pattern in urban & rural areas,
Different indicators to study livelihood systems.
Unit - 2
Agricultural livelihood systems (ALS): Meaning, approach, approaches and framework,
Definition of farming systems and farming based livelihood systems Prevalent Farming
systems in India contributing to livelihood.
Unit - 3
Types of traditional & modern farming systems. Components of farming system/
farming based livelihood systems - Crops and cropping systems, Livestock, (Dairy,
Piggery, Goatry, Poultry, Duckry etc.), Horticultural crops, Agro-forestry systems,
Aqua culture Duck/Poultry cum Fish, Dairy cum Fish, Piggery cum Fish etc., Small,
medium and large enterprises including value chains and secondary enterprises as
livelihood components for farmers, Factors affecting integration of various enterprises
of farming for livelihood.
Unit - 4
Feasibility of different farming systems for different agro-climatic zones, Commercial
farming based livelihood models by NABARD, ICAR and other organizations across
the country, Case studies on different livelihood enterprises associated with the farming.
Unit - 5
Risk & success factors in farming based livelihood systems, Schemes & programmes
by Central & State Government, Public & Private organizations involved in promotion
of farming based livelihood opportunities. Role of farming based livelihood enterprises
in 21st Century in view of circular economy, green economy, climate change,
digitalization & changing life style.

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Suggested Readings:
1. Ashley, C. and Carney, D. 1999. Sustainable Livelihoods: Lessons from Early
Experience; Department for International Development: London, UK; Volume 7.
[Google Scholar]
2. Agarwal, A. and Narain, S. 1989. Towards Green Villages: A strategy for
Environmentally, Sound and Participatory Rural Development, Center for Science
and Environment, New Delhi, India
3. Carloni, A. 2001. Global Farming Systems Study: Challenges and Priorities to 2030
– Regional Analysis: Sub-Saharan Africa, Consultation Document, FAO, Rome,
Italy
4. Dixon, J. and A. Gulliver with D. Gibbon. 2001. Farming Systems and Poverty:
Improving Farmers’ Livelihoods in a Changing World. FAO & World Bank, Rome,
Italy & Washington, DC, USA
5. Evenson, R.E. 2000. Agricultural Productivity and Production in Developing
Countries’. In FAO, The State of Food and Agriculture, FAO, Rome, Italy
6. Livelihood Improvement of Underprivileged Farming Community: Some
Experiences from Vaishali, Samastipur, Darbhanga and Munger Districts of Bihar
by B. P. Bhatt, Abhay Kumar, P.K. Thakur, AmitavaDeyUjjwal Kumar, Sanjeev
Kumar, B.K. Jha, Lokendra Kumar, K. N. Pathak, A. Hassan, S. K. Singh, K. K.
Singh and K. M. Singh ICAR Research Complex for Eastern Region ICAR Parisar,
P.O. Bihar Veterinary College, Patna - 800 014, Bihar
7. Panwar et al. 2020. Integrated Farming System models for Agricultural
Diversification, Enhanced Income and employment, Indian Council of Agricultural
Research, New Delhi
8. Reddy, S.R. 2016. Farming System and Sustainable Agriculture, Kalyani Publishers,
New Delhi.
9. Singh, J.P., et al. 2015. Region Specific Integrated Farming System Models, ICAR-
Indian Institute of Farming Systems Research, Modipuram.
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Unit: 1
Status of Agriculture in India and Different States, Income of Farmers
and Rural People in India. Livelihood – Definition, Concept and
Livelihood Pattern in Urban and Rural Area.
Status of Agriculture in India
Agriculture is the primary source of livelihood for nearly 58% of India’s
population. However, despite its importance, agriculture contributes only around 18-
20% to India’s GDP. The sector has been characterized by challenges such as low
productivity, fragmented land holdings, inadequate infrastructure, climate vulnerability,
and market fluctuations.
Key Crops and Agricultural Regions:
• Rice: The main staple crop grown in states like West Bengal, Punjab, Uttar Pradesh,
Andhra Pradesh, and Tamil Nadu.
• Wheat: Predominantly grown in Punjab, Haryana, Uttar Pradesh, and Madhya
Pradesh.
• Pulses: Grown in Maharashtra, Madhya Pradesh, Rajasthan, and Uttar Pradesh.
• Sugarcane: Cultivated in Uttar Pradesh, Maharashtra, Karnataka, and Tamil Nadu.
• Fruits and Vegetables: Horticulture has emerged as a significant part of Indian
agriculture with states like Maharashtra, Andhra Pradesh, Tamil Nadu, Gujarat, and
West Bengal leading the production of various fruits and vegetables.
Major Challenges in Agriculture:
• Fragmented Land Holdings: Over 86% of Indian farmers own less than 2 hectares of
land, leading to uneconomical farm sizes.
• Water Scarcity: Dependence on monsoon rains makes agriculture highly vulnerable
to fluctuations in rainfall.
• Low Productivity: Despite the large workforce, agricultural productivity in India
remains low compared to global standards.
• Limited Access to Technology: Modern farming techniques and advanced
machinery are not accessible to many small and marginal farmers.
• Climate Change: Increased incidences of droughts, floods and unseasonal rainfall
are affecting crop yields and farmers’ income.

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Status of Agriculture in Different States of India:
Punjab:
• Known as the "Granary of India," Punjab leads in the production of wheat and rice.
• The state’s agriculture is highly mechanized, and farmers benefit from assured
irrigation, primarily through canals.
• However, over-reliance on water-intensive crops like paddy has led to groundwater
depletion.
• Challenges: Depleting water table, declining soil health, stagnating crop yields, and
over-dependence on wheat-paddy crop cycle.
Uttar Pradesh:
• A major producer of food grains, including wheat, rice, and sugarcane.
• The state also leads in milk production, contributing significantly to India's dairy
sector.
• Challenges: Fragmented land holdings, low mechanization, and insufficient access
to modern farming technologies.
Maharashtra:
• A leading producer of cotton, sugarcane, pulses, and horticultural crops (fruits like
grapes, pomegranates, and oranges).
• The state has made significant progress in agricultural exports, especially in fruits.
• Challenges: Drought-prone regions face severe water shortages affecting crop yields.
Madhya Pradesh:
• Known for being the largest producer of pulses and oilseeds in India.
• The state's agricultural economy has been bolstered by the cultivation of wheat,
pulses, soybeans, and gram.
• Challenges: Despite good rainfall, irrigation coverage is limited, and farmers rely on
monsoons for water.
Tamil Nadu:
• A leading producer of rice and horticultural crops.

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• Agriculture in Tamil Nadu has been affected by water scarcity and irregular rainfall
patterns.
• Challenges: Water scarcity, monsoon dependency, and urbanization are affecting
rural and farm areas.
West Bengal:
• West Bengal is a top producer of rice, jute, and fish.
• The state has rich soil and ample water resources from the Ganges and its tributaries,
but floods often affect crop yields.
• Challenges: Floods, outdated farming methods, and rural poverty continue to
challenge agricultural productivity.
Income of Rural People and Farmers in India:
• Average Income of Farmers: The average monthly income of an agricultural
household in India was around ₹10,218 (as per a 2018 National Sample Survey
Office report).
• This includes income from wages, cultivation, livestock, and non-farm business
activities.
• Regional Variations:
Punjab: Highest average monthly income (over ₹18,000).
Bihar, Jharkhand, West Bengal: Farmers here have among the lowest average
incomes (around ₹7,000-₹9,000).
• Sources of Income: Apart from cultivation, many rural households depend on wages,
remittances, and other non-farm activities for survival.
Rural Employment and Income Distribution:
• Around 70% of India’s rural population is dependent on agriculture for their
livelihood. Rural income comes from multiple sources: Agriculture (cultivation and
livestock).
• Rural labour market (non-agricultural activities like construction, transportation).
• Public sector employment (government schemes like MNREGA).

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• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
provides 100 days of guaranteed employment to rural households, improving rural
income stability.
Livelihood – Definition, Concept and Livelihood Pattern in Urban and Rural Areas
Definition of Livelihood
A livelihood refers to the means through which an individual or household makes
a living. It encompasses the resources (such as skills, knowledge, and assets) and the
activities (such as employment, agriculture, or trade) that people undertake to earn
income or gain resources that support their life.
Chambers and Conway (1992) defined livelihood as “the capabilities, assets (both
material and social resources), and activities required for a means of living.”
Concept of Livelihood
The concept of livelihood goes beyond income generation and focuses on a more
holistic understanding of the way people secure the essentials of life, such as food,
water, shelter, clothing, and access to education and healthcare. It also includes social,
cultural, and environmental dimensions.
Key components of the livelihood concept include:
• Assets: Tangible and intangible resources that individuals or households have access
to. These can include land, livestock, cash, skills, social networks, and education.
• Activities: The specific actions that individuals or households undertake to meet
their needs, such as farming, trading, labouring, or working in industries.
• Capabilities: The ability of individuals or households to use their assets effectively
to generate income and secure their livelihood. This can include knowledge, skills,
health, and access to services.

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Livelihood Patterns in Rural Areas
Rural areas are characterized by a greater dependence on natural resources and
agricultural activities. The primary livelihood patterns include:
• Agriculture: Farming is the dominant livelihood activity in rural areas, where
households engage in the cultivation of crops, such as rice, wheat, maize, and various
cash crops like cotton and sugarcane.
• Livestock Rearing: Many rural households supplement their income through raising
livestock, including cattle, sheep, goats, and poultry.
• Fisheries and Forestry: In coastal and forested regions, fishing and forest based
activities are key livelihood options. This includes the collection of forest products
(such as timber, fuelwood, medicinal plants, and honey).
• Aquaculture: In some rural areas, fish farming is becoming a viable livelihood
option.
Rural Non-Farm Employment:
• Artisanal Activities: In many rural areas, traditional crafts, weaving, pottery, and
handloom production provide employment.
• Casual Labour: Many rural households supplement their incomes by working as
casual labourers in construction, transportation, and small-scale manufacturing.
• Rural Enterprises: Small shops, milling units, repair services, and other enterprises
contribute to rural livelihoods.
Livelihood Patterns in Urban Areas
• Industries and Manufacturing: A large portion of the urban workforce is employed
in manufacturing units, textile industries, electronics, and other industrial sectors.
• Service Sector: The urban economy is increasingly service-driven, with a significant
portion of the population employed in sectors like finance, education, healthcare,
retail, and IT services.
• Public Sector Jobs: Government employment, including jobs in education,
healthcare, law enforcement, and municipal services, forms a stable source of
livelihood for many urban households.

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Public Sector Employment and Schemes
Programs like Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) provide guaranteed employment for a certain number of days
annually to rural households, ensuring a fallback option for income generation.
Government schemes focused on improving rural infrastructure (roads, irrigation,
and electricity) also create employment opportunities.
Self-Employment and Entrepreneurship:
• Small and Medium Enterprises (SMEs): Urban areas offer opportunities for self-
employment, including running small shops, tailoring, carpentry, repair services, and
other entrepreneurial ventures.
• Online and Gig Economy: The growth of technology and digital platforms has
introduced new livelihood patterns in urban areas, including freelance work, gig
economy jobs (like food delivery and ridesharing), and online businesses.
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UNIT: 2
Agricultural livelihood system (ALS), Meaning, Approach, Approaches
and Framework. Definition of farming systems and farming based
livelihood systems Prevalent Farming Systems in India contributing to
livelihood.
The Agricultural Livelihood System (ALS) refers to the integrated and holistic
approach to managing agricultural activities that contribute to the economic and social
well-being of individuals and communities. This system is vital in rural areas where
agriculture is a primary source of income, food security, and cultural identity.
Definition of Agricultural Livelihood System (ALS)
Agricultural Livelihood System (ALS) encompasses the various agricultural
based activities and strategies employed by households and communities to secure their
livelihoods. It includes the farming activities, income diversification strategies, access
to markets, inputs, and support services that shape the living conditions of individuals
who depend on agriculture for their sustenance.
Core Components of ALS:
• Natural Resources
• Human Resources
• Financial Resources
• Social and Institutional Support
• Physical Infrastructure
• Markets and Trades
Approaches to Agricultural Livelihood Systems Farming Systems Approach
This approach focuses on the farm as a holistic system, considering interactions
between crops, livestock, soil, water, and socio-economic factors. It aims at optimizing
resource use for sustainable productivity.

Farming Based Livelihood Systems Notes By Akhil Agriculture
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Sustainable Livelihoods Approach (SLA)
SLA views livelihoods in a broader socio-economic context, focusing on how
people use assets (natural, financial, human, social, and physical) to develop livelihood
strategies and reduce vulnerabilities.
Agro ecological Approach
This approach integrates ecological principles into agricultural systems. It
promotes biodiversity, organic inputs, and traditional knowledge to enhance the
resilience and productivity of agricultural ecosystems.
Value Chain Approach
This approach seeks to improve the entire agricultural value chain, from
production to marketing, by linking smallholder farmers to markets, improving access
to inputs, and increasing value addition.
Integrated Rural Development Approach
This approach combines agricultural development with other rural sectors
(health, education, and infrastructure) to create synergies that improve the overall well-
being of rural communities.
Climate-Smart Agriculture (CSA)
CSA aims to increase agricultural productivity and incomes, build resilience to
climate change, and reduce greenhouse gas emissions through the promotion of climate-
adaptive practices.
Framework of Agricultural Livelihood System:
• Assets: Households rely on five types of capital: natural, physical, financial, social,
and human. These assets are used to formulate strategies to improve livelihoods.
• Vulnerability Context: Factors such as climate variability, economic instability,
policy changes, and market fluctuations that influence livelihoods and shape the
environment in which households operate.
• Transforming Structures and Processes: These include government institutions,
private sector actors, nongovernmental organizations (NGOs), and international
agencies that provide resources, implement policies, and offer services that influence
ALS outcomes.

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• Livelihood Strategies: These are the various activities and choices people make to
achieve livelihood goals, including crop production, livestock rearing, wage labour,
and income diversification through non-agricultural activities.
• Livelihood Outcomes: The outcomes of ALS strategies are measured in terms of
increased income, food security, reduced vulnerability, sustainable resource
management, and improved well-being.
Conclusion
The Agricultural Livelihood System (ALS) is a complex and multidimensional
concept that integrates agricultural production, socio-economic factors, and
sustainability considerations. Through various approaches and frameworks, ALS seeks
to enhance the livelihoods of rural communities, ensuring resilience, environmental
stewardship, and equitable development. The system is dynamic, adapting to changing
environmental, economic, and social conditions to provide a sustainable path for
agricultural-dependent populations.
Definition of Farming Systems
Farming systems can be defined as a complex interrelated matrix of soils, plants,
animals, implements, power, labour, capital, and other inputs controlled by farm
households. These are designed to meet the diverse objectives and needs of the family
while maintaining or improving the natural resource base and environmental quality.
Farming systems integrate crops, livestock, aquaculture, forestry, and agro-forestry with
the aim of optimizing resource use efficiency, improving agricultural productivity, and
increasing farm income.
Key elements of farming systems include:
• Agro-climatic conditions: Soil, water, and climate, topography.
• Biological factors: Crops, livestock, trees, and their interaction.
• Economic and social factors: Labour, market access, household size, and objectives.
Farming-Based Livelihood Systems:
Farming-based livelihood systems refer to livelihood strategies adopted by rural
households that centre on agriculture and related activities. In these systems, agriculture
is the primary means of securing food, income, and employment. These households also

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diversify into allied sectors such as animal husbandry, fisheries, forestry, and non-farm
rural activities to enhance their income and reduce risk.
Livelihood systems consider multiple dimensions such as:
• Natural capital (land, water, biodiversity).
• Physical capital (infrastructure, tools).
• Human capital (skills, education).
• Social capital (relationships, networks).
• Financial capital (income, credit access).
Prevalent Farming Systems in India: India's farming systems are diverse due to
variations in agro-climatic conditions, socio-economic factors, and cultural practices.
The major farming systems prevalent in India include:
Crop-Based Farming Systems:
• Rice-Wheat System: Common in northern states like Punjab, Haryana and Uttar
Pradesh. Rice is grown during the Kharif season (monsoon), and wheat is grown
during the Rabi season (winter). This system contributes to food security in India.
• Rice-Based Systems: Prevalent in eastern and southern states such as west Bengal,
Odisha, Tamil Nadu, and Andhra Pradesh. In these regions, rice is grown with other
crops like pulses, oilseeds, and vegetables.
• Millet-Based Systems: Found in semi-arid regions like Rajasthan, Karnataka, and
parts of Maharashtra, where millets like sorghum, pearl millet, and finger millet are
the staple crops.
• Sugarcane-Based Systems: Common in states like Maharashtra, Uttar Pradesh, and
Karnataka. Sugarcane is a major cash crop and contributes significantly to the
income of farmers.
Mixed Farming Systems:
• Crop-Livestock Systems: In many parts of India, small and marginal farmers rely on
a combination of crop farming and livestock rearing. For instance, in states like
Gujarat and Rajasthan, farmers grow crops and rear livestock (cows, buffaloes,
goats) to diversify income sources and meet household needs for milk, meat, and
manure.
• Agroforestry Systems: These systems integrate trees with crops and livestock.
Farmers in southern and north eastern India practice agroforestry, where fruit trees

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(mango, coconut, and banana) are combined with staple crops like rice and
vegetables. These systems are more sustainable and increase farm resilience.
Horticulture-Based Systems:
• Fruit and Vegetable Farming: India is a leading producer of fruits and vegetables
such as mango, banana, papaya, citrus fruits, potato, tomato, and onion. Horticulture-
based systems are prevalent in states like Kerala, Tamil Nadu, Maharashtra, and
West Bengal. These systems provide high returns, although they are more labour-
intensive and susceptible to price fluctuations.
• Spice-Based Systems: States like Kerala, Karnataka, and Tamil Nadu are known for
cultivating spices such as cardamom, pepper, ginger, and turmeric. These high-value
crops contribute to both domestic consumption and export.
Livestock-Based Farming Systems:
• Dairy Farming: India is the largest milk producer in the world, and dairy farming is
an important livelihood for millions of rural households. Dairy-based systems are
prominent in states like Uttar Pradesh, Punjab, Gujarat, and Maharashtra.
• Poultry Farming: Poultry is a significant sector in states like Tamil Nadu, Andhra
Pradesh, and West Bengal. The rising demand for eggs and poultry meat provides
steady income to small farmers.
Fishery-Based Systems:
• Inland Fisheries: With its vast network of rivers, lakes, and ponds, India has a well-
established inland fishery system. States like West Bengal, Assam, Andhra Pradesh,
and Odisha are prominent in freshwater fish production.
• Marine Fisheries: The coastal states of Kerala, Tamil Nadu,
• Maharashtra and Gujarat have vibrant marine fishing communities. Fisheries
contribute to both livelihoods and nutritional security in these regions.
Integrated Farming Systems
• These systems combine various components of farming, such as crops, livestock,
aquaculture, and agroforestry, to enhance farm productivity and sustainability.
Integrated farming systems are being promoted in many parts of India to maximize
resource use efficiency, improve soil fertility, and reduce input costs.

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Contribution of Farming Systems to Livelihoods in India:
• Employment Generation: Agriculture and allied activities provide employment to
nearly 60% of India's rural population. Farming systems support both on-farm labour
and off-farm rural employment.
• Food Security: Farming systems, particularly rice-wheat and other cereal-based
systems, are critical for ensuring food security in India. India is largely self-sufficient
in food grains, thanks to these systems.
• Income Diversification: Mixed farming systems and horticulture-based systems
help farmers diversify their sources of income. By incorporating livestock, fishery,
or agroforestry, farmers reduce their dependence on a single crop or enterprise, thus
minimizing risk.
• Sustainability and Resource Conservation: Integrated farming systems promote
sustainable agricultural practices, such as crop rotation, organic farming, and soil
conservation. This helps in preserving soil fertility and protecting natural resources.
• Economic Growth: High-value farming systems, such as horticulture and dairy
farming, contribute significantly to the rural economy. These systems provide higher
returns and enable smallholder farmers to improve their standard of living.
• Women's Empowerment: Livestock-based farming systems and horticulture
involve women significantly in day-to-day activities. These systems provide income-
generation opportunities for rural women and contribute to their empowerment.
• Export Earnings: Farming systems that produce high-value cash crops (sugarcane,
spices, cotton, and horticulture) contribute to India's export earnings and enhance the
livelihoods of farmers involved in these sectors.
Conclusion:
Farming systems in India are crucial for the livelihoods of rural households,
providing food, income, and employment. The diverse agro climatic conditions of India
support a variety of farming systems, each tailored to regional needs. From crop-based
systems to integrated farming approaches, Indian agriculture remains a key driver of
rural development and sustainability.

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UNIT: 3
Types of traditional & modern farming systems. Components of farming system /
farming based livelihood systems - Crops and cropping systems, Livestock, (Dairy,
Piggery, Goatry, Poultry, Duckry etc.), Horticultural crops, Agro--forestry
systems, Aqua culture Duck/Poultry cum Fish, Dairy cum Fish, Piggery cum Fish
etc., Small, medium and large enterprises including value chains and secondary
enterprises as livelihood components for farmers, Factors affecting integration of
various enterprises of farming for livelihood.
 Traditional Farming Systems
Shifting Cultivation (Slash and Burn Agriculture)
Farmers clear a patch of forest, burn vegetation, and grow crops on the nutrient-rich ash.
After a few years of cultivation, the soil fertility declines, and the field is abandoned.
The process is then repeated on a new patch of land.
• Advantages: It allows soil recovery over time, conserves biodiversity in forested
areas, and requires fewer inputs like fertilizers or pesticides.
• Disadvantages: Deforestation, loss of biodiversity, and unsustainable with
increasing population pressure.
• Locations: Practiced in tropical rainforests of Africa, Southeast Asia, and parts of
South America.
Subsistence Farming
Farming system where crops are grown mainly for personal consumption rather than for
sale. It is labour-intensive, often reliant on family labour, and uses traditional tools like
hoes and plows.
• Advantages: Low input costs and minimal environmental degradation.
• Disadvantages: Low yields, limited surplus for trade, and high vulnerability to
climate variations.
• Locations: Common in parts of Africa, South Asia, and Latin America.

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Pastoralism (Nomadic and Semi-Nomadic)
A system where livestock (cattle, sheep, goats) are moved seasonally in search of
grazing areas. Nomadic pastoralists are constantly on the move, while semi-nomadic
ones have a home base but still move with their herds.
• Advantages: Utilizes marginal lands that are unsuitable for crop production and
allows flexible use of resources.
• Disadvantages: Overgrazing, land degradation, and conflict over grazing rights.
• Locations: Found in arid and semi-arid regions like the Sahel in Africa, Mongolia,
and Central Asia.
Mixed Farming
A system that combines crop cultivation with livestock farming. Farmers grow crops to
feed their animals and sell animal products such as milk, meat, and eggs.
• Advantages: Diversifies income, improves soil fertility through animal manure, and
reduces risk through multiple income streams.
• Disadvantages: Requires more labour, expertise in both animal husbandry and crop
production and may need more land.
• Locations: Practiced in temperate regions like Europe, North America, and parts of
Asia.
Terrace Farming
Farming on sloped land by constructing terraces (step-like structures) to prevent soil
erosion and conserve water.
• Advantages: Makes, use of hilly terrain, conserves water, reduces erosion, and
supports food production in mountainous areas.
• Disadvantages: Labour-intensive to construct and maintain terraces.
• Locations: Practiced in mountainous regions like the Andes (South America),
Southeast Asia (rice terraces), and the Himalayas.
Rainfed Agriculture
Farming that depends solely on rainfall for water, with little to no irrigation.

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• Advantages: Minimal cost for irrigation infrastructure, promotes local crop varieties
suited to rainfall patterns.
• Disadvantages: Highly vulnerable to weather changes, droughts, and inconsistent
rainfall.
• Locations: Common in sub-Saharan Africa, South Asia, and parts of Latin America.
 Modern Farming Systems
Monoculture
The practice of growing a single crop on a large scale over a vast area.
• Advantages: Simplifies management, efficient use of machinery, and maximizes
output for high-demand crops.
• Disadvantages: Depletes soil nutrients, increases vulnerability to pests and diseases,
and leads to biodiversity loss.
• Locations: Common in large agricultural operations in the United States (e.g., corn,
soy), Brazil, and Australia.
Commercial Farming
Large-scale production of crops or livestock for sale and profit, usually relying on
advanced technologies, high inputs of fertilizers, and mechanization.
• Advantages: High yields, increased efficiency through mechanization and
contribution to food security and export economies.
• Disadvantages: High input costs, environmental damage from overuse of fertilizers
and pesticides, and social inequalities in land ownership.
• Locations: Widely practiced in developed countries (U.S., Canada, and Australia)
and emerging economies like Brazil and Argentina.
Agroforestry
A system that integrates trees and shrubs into crop and livestock farming systems to
improve land use and diversify production.
• Advantages: Increases biodiversity improves soil fertility and provides multiple
products (timber, fruits, fuelwood).

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• Disadvantages: Complex management system and longer time to see economic
returns from tree crops.
• Locations: Practiced in Southeast Asia, Africa, and parts of Latin America
Hydroponics and Aquaponics
Soilless farming systems where plants are grown in nutrient rich water solutions
(hydroponics) or integrated with fish farming (aquaponics).
• Advantages: Uses less water, no soil degradation, high efficiency in small spaces,
and reduced use of pesticides.
• Disadvantages: High setup costs, need for technical expertise and dependence on
external inputs.
• Locations: Practiced in urban areas, greenhouses, and arid regions (e.g., Middle
East).
Precision Farming
A technology-driven approach that uses GPS, sensors, and data analytics to optimize
farm inputs (fertilizers, water, seeds) and monitor crop conditions in real-time.
• Advantages: Increases efficiency, reduces waste, and enhances productivity by fine-
tuning inputs to specific field conditions.
• Disadvantages: High initial investment and dependence technology.
• Locations: Predominantly in-developed countries like the U.S., Europe, and
Australia.
Vertical Farming
Growing crops in vertically stacked layers or vertically inclined surfaces, often in
controlled environments (indoors or greenhouses).
• Advantages: Efficient use of space, controlled environment allows year-round
production, reduces need for pesticides.
• Disadvantages: High energy costs for artificial lighting and climate control,
expensive setup, and limited crop variety.
• Locations: Practiced in urban areas, especially in cities like Singapore, Tokyo and
New York.

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Genetically Modified (GM) Farming
A system that utilizes genetically modified crops that are engineered for traits like pest
resistance, herbicide tolerance, and improved nutritional content.
• Advantages: Higher yields, reduced use of pesticides, and resistance to
environmental stresses.
• Disadvantages: Ethical concerns, potential environmental risks, and market
resistance to GM products.
• Locations: Common in the U.S., Brazil, Argentina, and parts of Asia.
Comparison: Traditional Vs Modern Farming Systems:
• Technology: Traditional systems rely on minimal technology, while modern
systems use advanced technology like machinery, GMOs, and precision tools.
• Scale: Traditional farming is usually small-scale and subsistence-oriented, whereas
modern farming is large-scale and profit-driven.
• Inputs: Traditional systems use organic methods and low inputs, while modern
systems depend heavily on synthetic inputs (fertilizers, pesticides).
• Environmental Impact: Traditional methods often conserve biodiversity and
maintain soil health, whereas modern systems may lead to environmental
degradation if not managed sustainably.
Components of Farming Systems / Farming-Based Livelihood Systems-
Farming systems refer to an integrated set of agricultural activities organized to
efficiently use resources for sustainable production. Each component within a
farming system works symbiotically to improve productivity, resource efficiency,
and farmer income. The main components of a farming system typically include
crops, livestock, horticulture, agroforestry, and aquaculture, among others.
Crops and Cropping Systems:
• Crops refer to plants grown and harvested for food, fodder, fiber, fuel, or raw
materials.
• Cropping systems describe the patterns and techniques used to grow crops over time
and space, ensuring efficient resource use and sustainable productivity.

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Key Types of Cropping Systems:
• Mono cropping: Growing only one type of crop in a specific area year after year.
Examples: wheat, rice.
• Mixed Cropping: Growing two or more crops simultaneously in the same field
without a distinct row arrangement. Examples: maize and beans.
• Intercropping: Growing two or more crops together with distinct row arrangements.
It helps in utilizing space more efficiently. Examples: maize and cowpea
intercropping.
• Crop Rotation: The practice of growing different crops sequentially on the same
land to improve soil health and reduce pest pressure. Example: rotation of legumes
and cereals.
• Agro-pastoral Systems: Integration of crops and livestock, where both serve to
enhance productivity (e.g., crops for feed and animals for manure).
• Livestock-Based Systems: Livestock plays a vital role in most farming systems,
contributing to food security, income, and employment. Livestock components are
typically integrated with crop production systems for mutual benefits.
• Key Livestock Systems: Dairy Farming: Focuses on the production of milk. The
animals reared include cows, buffaloes, goats, and camels. Dairy waste can be used
as manure in crop production.
• Piggery: Raising pigs for meat production (pork). It is a profitable venture due to
pigs' ability to convert diverse feeds into body mass quickly. Piggery waste can be
used in biogas production or as manure.
• Goat Farming: Goats are raised for milk, meat, skin, and fiber. They require less
land and resources compared to larger livestock.
• Poultry Farming: Focuses on the raising of chickens for eggs and meat. Poultry
manure is a valuable organic fertilizer for crop farming.
• Duck Farming: Ducks are raised for meat, eggs, and feathers. Duckry is commonly
integrated into fish farming.
• Sheep Farming: Sheep are reared for wool, milk, and meat. Sheep farming is often
practiced in regions unsuitable for crop farming.
Integrated Livestock Systems:
• Mixed Crop-Livestock Farming: This is the most widespread farming system, where
Livestock is integrated with crops. Animals graze on crop residues, and their manure
improves soil fertility.

21
• Poultry cum Fish Farming: Poultry droppings serve as feed for fish in integrated
systems.
Horticultural Crops
Horticulture includes the cultivation of fruits, vegetables, ornamental plants, and
medicinal herbs. Horticultural crops are typically higher value crops and are crucial in
enhancing income and nutrition for smallholder farmers.
Key Components:-
• Fruits: Mango, banana, citrus, guava, papaya, apple, etc.
• Vegetables: Potatoes, tomatoes, cabbages, onions, okra, leafy greens, etc.
• Ornamentals: Flowers and plants grown for aesthetic purposes (roses, tulips, etc.).
• Medicinal and Aromatic Plants: Examples include turmeric, aloe vera and lavender.
Agroforestry Systems
Agroforestry refers to the intentional integration of trees and shrubs into crop and
livestock farming systems. It provides ecological and economic benefits by improving
soil fertility, water retention, carbon sequestration, and providing wood and non-timber
forest products.
Key Types of Agroforestry:
• Silvo-Pastoral Systems: Trees are integrated with livestock grazing areas. This
system helps improve forage quality, provides shade, and contributes to ecosystem
services.
• Agro-Silviculture: Integration of trees with crop production. For example, growing
fruit or timber trees alongside cash crops or staples.
• Agri-Horti-Forestry: A system combining agriculture, horticulture, and forestry to
enhance productivity and reduce risks.
Aquaculture-Based Systems
Aquaculture is the farming of aquatic organisms like fish, shellfish, and aquatic
plants. It is often integrated with other farming systems to utilize water and waste
efficiently.

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Key Types of Integrated Aquaculture Systems:
• Duck/Poultry cum Fish Farming: This system involves raising ducks or poultry on
platforms above fishponds. Duck/poultry droppings act as organic manure for the
fishpond, promoting plankton growth (natural fish food).
• Dairy cum Fish Farming: In this system, cattle or buffaloes are raised near fish ponds,
and the livestock waste is directed into the fishpond as organic fertilizer to promote
fish production.
• Piggery cum Fish Farming: In this system, pigs are raised adjacent to fish ponds, and
pig excrement is used as a nutrient source for aquatic organisms, enhancing fish
growth.
Benefits of Integrated Aquaculture:
• Improved efficiency of nutrient recycling (animal waste supports fish production).
• Enhanced farm income through the diversification of products (meat, eggs, and fish).
• Reduced reliance on synthetic fertilizers and feeds for fish production.
Special Integrated Farming Systems
These systems combine multiple components of agriculture (crops, livestock,
aquaculture etc.) to achieve sustainability, economic viability, and environmental
conservation.
Examples of Special Integrated Systems:
• Rice-Fish Systems: Rice paddies are used for growing both rice and fish. The fish
help control pests in the rice fields and improve water quality by eating weeds and
other harmful organisms.
• Agro-Silvo-Pastoral Systems: This involves the integration of crops, trees and
livestock on the same land. Trees provide shade and fodder, crops provide food for
humans and animals, and livestock provides manure to improve soil fertility.
• Agri-Horti-Livestock Systems: Combining agriculture, horticulture, and livestock
farming to optimize land use and improve farm income.

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Small, medium and large enterprises including value chains and secondary
enterprises as livelihood components of farmers
Farming is the primary source of income for millions of people worldwide, but
increasingly, farmers are turning to small, medium, and large enterprises to diversify
their livelihoods and increase economic resilience. These enterprises can range from
small on-farm activities to participation in large-scale agribusinesses. By engaging in
such enterprises, farmers can generate multiple income streams, reduce risk, and
improve their overall economic stability.
Small Enterprises as a Livelihood Component for Farmers
Definition: Small enterprises are generally businesses that have fewer than 50
employees and modest revenue. For farmers, these are often on-farm or near-farm
activities that require minimal investment but provide additional income.
Medium Enterprises as a Livelihood Component for Farmers
Definition: Medium enterprises generally have between 50 and 250 employees
and generate moderate revenues. For farmers, medium enterprises typically involve
more formalized business activities that are larger in scale and may involve external
investment or partnerships.
Value Chains in Agriculture
An agricultural value chain encompasses all stages involved in bringing a product
from the farm to the consumer, including inputs, production, processing, transportation,
and marketing. Understanding the value chain is crucial for farmers to maximize their
returns and sustainability.
Primary Components of the Value Chain:
Input Suppliers: These enterprises supply farmers with seeds, fertilizers,
pesticides, machinery, and other necessary materials.
• Small enterprises: Local agro-dealers.
• Medium enterprises: Regional input suppliers or cooperatives.
• Large enterprises: Multinational companies (e.g., Monsanto or John Deere).

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Production: This involves growing crops or raising livestock.
• Small enterprises: Family farms or smallholder farmers.
• Medium enterprises: Commercial farms using modern technologies.
• Large enterprises: Large-scale agribusinesses.
Processing and Packaging: Adds value by transforming raw produce into consumable
goods.
• Small enterprises: Local mills or dairy cooperatives.
• Medium enterprises: Regional processing plants (e.g., wheat mills, fruit canning
factories).
• Large enterprises: Large agro-industries (e.g., Nestlé, Unilever).
Distribution: Getting products from processing facilities to consumers.
• Small enterprises: Local vendors or small transportation services.
• Medium enterprises: Regional distributors, cooperatives.
• Large enterprises: Multinational distributors, retail chains.
Marketing and Retail: Involves advertising, selling, and delivering products to the
final consumers.
• Small enterprises: Farmers' markets, small shops.
• Medium enterprises: Regional supermarket chains.
• Large enterprises: Multinational retailers like Walmart or Carrefour.
Secondary Enterprises as Livelihood Components for Farmers
Secondary enterprises refer to businesses activities that farmers can engage in, in
addition to their primary farming activities. These activities help diversify income
sources and increase economic resilience.
Examples of Secondary Enterprises:
• Agri-tourism: Farmers open their farms to tourists for activities such as farm stays,
tours, and agricultural education. This offers both direct income and a marketing
platform for farm products.

25
• Processing of Farm Products: Farmers can set up small-scale processing units
(e.g., making jam, cheese, or dried fruit) to add value to their primary production.
• Animal Husbandry: Farmers can rear animals (e.g., chickens for eggs, goats for
milk) alongside crop farming to generate additional income.
• Crafts and Handicrafts: Utilizing agricultural by-products (e.g., straw, wood) to
make and sell crafts.
• Renewable Energy Production: Farmers can produce bioenergy or invest in solar
or wind energy installations, providing electricity to the grid or local communities.
• Transport and Logistics: Farmers can invest in small transport businesses to carry
their own produce to market, reducing dependency on external logistics.
• Input Supply and Equipment Leasing: Farmers with extra equipment (e.g.,
tractors, harvesters) can rent these out to neighbouring farmers, creating another
revenue stream.
Role of Enterprises in Supporting Farmer Livelihoods
Different types of enterprises contribute to farmers' livelihoods in varied ways:
• Small Enterprises: Enable farmers to access locally available inputs at lower prices
and provide personalized services (e.g., credit from local suppliers, small-scale
marketing). These enterprises can foster close community ties.
• Medium Enterprises: Facilitate access to better technology, regional markets, and
offer farmer’s opportunities for value added processing of their products (e.g.,
processing cooperatives, bulk transportation).
• Large Enterprises: Provide access to global markets, advanced agricultural
technologies, and bulk-buying opportunities. However, large enterprises may also
exert significant pressure on smaller farmers, sometimes leading to unfavourable
power dynamics in contracts or pricing.
Challenges and Opportunities in Value Chains for Smallholder Farmers
Challenges:
• Access to Finance: Smallholder farmers often struggle to obtain affordable credit to
invest in necessary inputs or technology.
• Market Access: Farmers may face challenges in accessing high-value markets due
to logistical hurdles or lack of information.

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• Dependence on Middlemen: Many small-scale farmers sell their produce through
intermediaries who take a substantial cut of profits.
• Infrastructure: Poor infrastructure in rural areas can limit farmers' ability to process
or transport goods.
Opportunities:
• Cooperatives and Farmer Associations: Farmers can pool resources, reduce costs,
and access larger markets by forming cooperatives. This strengthens their bargaining
power.
• Technology Adoption: Digital platforms (e.g., mobile money, agro tech apps) allow
farmers to access market prices, weather forecasts, and online sales, bypassing
middlemen.
• Sustainable Farming Practices: Organic and fair-trade certifications offer farmers
opportunities to access niche, high value markets.
Small, medium, and large enterprises play crucial roles in supporting agricultural
production and the livelihoods of farmers. While small enterprises provide localized
services, medium and large enterprises drive regional and global market integration.
Secondary enterprises give farmers additional income streams, boosting their resilience
in a rapidly evolving agricultural economy. Effective integration of value chains and
enterprise support systems is key to maximizing farmers ‘productivity and income
potential.
Factors Affecting the Integration of Various Enterprises of Farming for
Livelihood
The integration of different farming enterprises (such as crops, livestock, fisheries,
agroforestry, and horticulture) is essential for creating a sustainable and diverse
livelihood for farmers. The process of integrating these enterprises involves combining
activities to optimize resource use, increase income, and reduce risks.
Environmental Factors:
• Soil Quality: The type of soil available influences the crops that can be grown and
the success of integrating livestock or agroforestry. For example, fertile soils may

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support multiple crops or trees that provide fodder for livestock, while poor soils
may limit integration options.
• Climate and Weather Conditions: Climate affects which crops, livestock, or fish
can thrive in a region. For instance, dairy farming and fish farming may thrive in
temperate regions, while dry areas may be better suited to drought-tolerant crops and
hardy livestock.
• Water Availability: Access to sufficient and reliable water is crucial for integrating
farming systems such as crop production, livestock, and fisheries. Irrigation
infrastructure and rainfall patterns directly affect integration, especially in water
intensive activities like horticulture and aquaculture.
• Biodiversity and Ecosystem Health: A healthy ecosystem with diverse plant and
animal species promotes natural pest control, soil fertility, and water conservation,
creating better opportunities for integration of enterprises. Degraded ecosystems, on
the other hand, limit options for farmers.
Economic Factors:
• Market Access: The availability of local, regional, or international markets plays a
significant role in the success of integrated farming systems. For instance, farmers
may choose to focus on high-demand products (like dairy, fish, or organic
vegetables) if they have access to markets that offer fair prices.
• Capital and Investment: The initial cost of setting up integrated enterprises can be
high, especially for infrastructure (e.g., irrigation systems, livestock pens, or fish
ponds). Farmers with limited access to credit or financial resources may face
challenges in adopting integrated systems.
• Price Volatility: Fluctuations in the prices of agricultural products can affect the
stability of income from integrated farming systems. Farmers may hesitate to invest
in high-risk enterprises if there is uncertainty in product prices or demand.
Technological Factors:
• Access to Modern Farming Technologies: Availability and adoption of modern
technology (e.g., precision agriculture, improved seeds, artificial insemination for

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livestock, aquaculture innovations) greatly influence the integration of different
farming enterprises. Efficient use of these technologies improves productivity and
sustainability.
• Mechanization: Mechanized farming tools and machinery can increase efficiency
in integrating enterprises like crop-livestock farming. Lack of mechanization may
limit integration potential, especially for smallholder farmers.
• Knowledge and Skills: Farmers must have the technical expertise to manage
multiple enterprises effectively. Training and extension services are critical to enable
them to integrate crops, livestock, and fish production, as well as adopt modern
farming practices.
• Information and Communication Technology (ICT): ICT can support integration
by providing farmers with real-time data on market trends, weather forecasts, and
farming techniques. This helps in making informed decisions regarding enterprise
integration.
Social and Cultural Factors:
• Traditional Farming Practices: Some farming communities may rely on
traditional, single-enterprise methods (e.g., subsistence farming) that resist
integration. Changing these practices requires education, incentives, and community
involvement.
• Family Labour and Workforce: The availability of family labour or hired help
affects the ability to manage multiple enterprises. Labour intensive enterprises, such
as livestock or horticulture, may require more workforce, and successful integration
depends on the capacity to meet labour demands.
• Land Tenure and Ownership: Secure land ownership or long-term leasing
arrangements encourage farmers to invest in diverse enterprises and adopt
sustainable practices. In contrast, insecure land tenure limits long-term investment
in integrated systems.
• Gender and Social Roles: In many farming communities, gender roles influence
enterprise integration. Women may focus on specific enterprises (like small livestock
or horticulture), while men may dominate larger-scale or more mechanized

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enterprises. Promoting gender equality in access to resources can improve
integration. Cultural Preferences: Local preferences for certain crops or livestock
also play a role in what enterprises are integrated.
• Cultural Preferences: Local preferences for certain crops or livestock also play a
role in what enterprises are integrated. Cultural significance attached to specific
enterprises can affect the willingness to adopt others.
Policy and Institutional Factors:
• Government Policies and Subsidies: Supportive government policies, subsidies,
and incentives can encourage farmers to adopt integrated farming systems. Policies
that promote crop diversification, agroforestry, and livestock integration, as well as
access to credit, can boost integration.
• Land Use Regulations: Zoning laws, environmental regulations, and land use
policies can either promote or restrict the integration of enterprises. In some regions,
laws may restrict activities like livestock farming or fish ponds, which limits
integration opportunities.
• Cooperatives and Farmer Organizations: Cooperative groups and farmer
associations can provide resources, training, and market access, making it easier for
farmers to adopt integrated systems. Institutional support helps share knowledge and
resources among farmers.
• Access to Extension Services: Availability of agricultural extension services that
provide technical knowledge, support, and training on integrated farming practices
is crucial. Without access to such services, farmers may not be able to effectively
integrate enterprises.
• Rural Infrastructure: Infrastructure such as roads, storage facilities, and energy
access directly impact the ability of farmers to integrate enterprises and bring
products to market.

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Ecological Sustainability:
• Natural Resource Management: Sustainable integration requires careful
management of soil, water, and biodiversity to avoid depletion. Practices like crop
rotation, agroforestry, and conservation agriculture can enhance ecological
sustainability while integrating various enterprises.
• Environmental Impact: Enterprises like livestock farming and aquaculture can
have negative environmental impacts (e.g., methane emissions, water pollution).
Sustainable integration involves balancing productivity with ecological
conservation, such as using organic practices or regenerative farming techniques.
• Resilience to Climate Change: Integrated farming systems that include a mix of
crops, livestock, and trees can provide greater resilience to climate change by
diversifying risks. The success of integration will depend on the ability to adapt
farming practices to changing environmental conditions.
Integrating various enterprises in farming is a multifaceted approach that depends on
environmental, economic, technological, social, cultural, and policy related factors. A
successful integration strategy focuses on maximizing resource use, improving income
diversity, and ensuring ecological sustainability. With proper planning and support,
integrated farming systems can improve farmer’s livelihoods and make them more
resilient to economic and environmental challenges.

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UNIT: 4
Feasibility of Different Farming Systems for Different agro-climatic
Zones, Commercial Farming Based Livelihood Models by NABARD,
ICAR and Other Organizations across the Country.
Feasibility of different farming systems for different agro-climatic zones
The feasibility of farming depends on various agro systems climatic factors, such
as temperature, rainfall, soil type, and topography, which influence crop types,
productivity, and sustainability.
Tropical Wet and Humid Zone:
• Characteristics: High temperature (25-30°C), high humidity, and abundant rainfall
(above 2000 mm annually).
• Regions: Parts of Southeast Asia, Central Africa, Amazon Basin.
• Soil: Generally acidic with low nutrient retention due to leaching.
• Crops: Rice, sugarcane, bananas, coffee, cocoa, rubber, oil palm.
Feasible Farming Systems:
• Plantation Agriculture: High-value perennial crops like coffee, cocoa, oil palm,
and rubber thrive, especially in commercial setups.
• Intensive Mixed Farming: With regular water availability, crop-livestock systems
can maximize returns, balancing crop residues for livestock feed.
• Rice-Fish Farming: Wetlands in this zone are suitable for integrated rice-fish
farming, benefiting from the high-water availability and supporting biodiversity.
Semi-Arid and Arid Zones:
• Characteristics: Low rainfall (150-500 mm annually), high temperatures, and low
soil moisture.
• Soil: Often sandy, poor in organic matter, prone to salinity.
• Crops: Drought-resistant crops like millets, sorghum, chickpeas, and pulses.
• Dryland Farming: Drought-resistant crops like millet, sorghum, and pulses are
grown, focusing on conserving soil moisture.

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• Agro-Pastoralism: Combining livestock with limited cropping (e.g., forage crops),
using hardy breeds that can survive in sparse vegetation.
• Rainfed Agriculture: Crop selection is rain dependent, typically practicing soil
conservation to retain moisture.
Sub-Humid and Moist Sub-Humid Zones:
• Characteristics: Moderate rainfall (500-1500 mm), seasonal dry spells, moderate
temperatures.
• Regions: Parts of Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, West Bengal,
Chhattisgarh, Odisha.
• Soil: Fertile alluvial and red soils, suitable for diverse crops.
• Crops: Rice, wheat, maize, pulses, oilseeds, sugarcane, cotton.
• Mixed Farming: Crop-livestock integration is common, especially in Uttar Pradesh
and Bihar, where crops and livestock complement each other.
• Integrated Crop-Livestock Systems: Nutrient cycling with crop residues for
animal feed in states like Chhattisgarh and Jharkhand.
• Organic Farming: Suitable for states like Sikkim (fully organic), and parts of Bihar
and Madhya Pradesh, due to good soil and rainfall.
Temperate Zone:
• Characteristics: Mild summers, cold winters, moderate rainfall (700-1500 mm).
• Indian Regions: Jammu & Kashmir, Himachal Pradesh, Uttrakhand.
• Soil: Rich in nutrients, suitable for temperate crops and horticulture.
• Crops: Apple, pear, walnut, wheat, barley, potatoes.
• Commercial Horticulture: Apples, pears, plums, and other temperate fruits are
grown widely in Himachal Pradesh and Kashmir.
• Dairy Farming: Favourable for dairy production with improved breeds in hilly
regions, utilizing available pastures.
• Orchard Farming: Ideal for apples, apricots, and walnuts, mainly in Himachal
Pradesh and Kashmir valleys.
Mountain and Hilly Zones:
• Characteristics: Varied altitudes, cold climates at higher elevations, seasonal
rainfall.

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• Indian Regions: Himalayan states (Jammu & Kashmir, Himachal Pradesh,
Uttarakhand, Arunachal Pradesh), Nilgiris in Tamil Nadu.
• Soil: Thin and fragile on slopes, fertile in valleys.
• Crops: Barley, maize, wheat, millet, tea, cardamom, saffron, medicinal plants.
• Terrace Farming: Common in Uttarakhand and Himachal Pradesh, helps prevent
soil erosion, mainly for rice, wheat, and millets.
• Horticulture: Apple, peach, pear, and other fruits are cultivated in higher altitudes,
especially in Kashmir and Himachal Pradesh.
• Agroforestry: Medicinal plant cultivation (e.g., saffron in Kashmir, herbs in
Uttarakhand) alongside trees to conserve soil.
• Pastoralism: Sheep and goat rearing are common in the Himalayas, especially at
higher altitudes.
Coastal Zones:
• Characteristics: Moderate temperatures, high humidity, seasonal rainfall, saline
soils in some regions.
• Indian Regions: Coastal areas of Kerala, Tamil Nadu, Andhra Pradesh, Odisha,
West Bengal, Goa, and Maharashtra.
• Soil: Varies from fertile alluvial to saline soils in low-lying areas.
• Crops: Rice, coconut, sugarcane, groundnut, vegetables and salt-tolerant crops.
• Aquaculture and Mariculture: Brackish water fish and shrimp farming are
prominent in Kerala, West Bengal, and Andhra Pradesh.
• Rice-Fish Farming: Integrated rice-fish systems thrive in flood-prone regions,
especially in West Bengal and Odisha.
• Coconut-Based Farming: Kerala, Tamil Nadu, and Goa use coconut intercropped
with fruits and spices for diversified income.
• Salt-Tolerant Crop Farming: Suitable in saline-affected coastal areas, with crops
like saline tolerant rice and vegetables.
In India, the diverse agro climatic zones make it suitable for a range of farming
systems. Sustainable farming practices like agroforestry and conservation agriculture
help mitigate climatic challenges and enhance productivity. Tailoring these systems to
each zone's specific characteristics-such as dryland farming in arid areas like Rajasthan
and aquaculture in coastal states like West Bengal-ensures resilience and optimal

34
agricultural output. Each region can benefit from adaptive systems that match its
rainfall, soil type, and temperature profile.
Commercial Farming Based Livelihood Models by NABARD, ICAR and other
Organizations across the Country
India's agricultural sector has seen numerous initiatives aimed at promoting
commercial farming as means to enhance rural livelihoods, boost agricultural
productivity, and reduce poverty. These initiatives are driven by government
organizations like NABARD (National Bank for Agriculture and Rural Development),
ICAR (Indian Council of Agricultural Research), state agricultural departments, and
several NGOs and private organizations.
 NABARD Initiatives in Commercial Farming
NABARD plays a pivotal role in financing and promoting commercial farming models
across India through schemes, subsidies, and loans.
Key models and initiatives include:
Integrated Watershed Management Program (IWMP):
• Launched in 2009 as a part of the Pradhan Mantri Krishi Sinchai Yojana (PMKSY).
• NABARD supports watershed projects to improve water availability and soil
conservation.
• Focuses on improving agriculture and promoting crop diversification.
• Farmers are encouraged to adopt cash crops and high-value horticulture, boosting
income levels.
Agri-Clinic and Agri-Business Centres (ACABC):
• Launched in 2002 by NABARD in partnership with MANAGE (National Institute
of Agricultural Extension Management).
• NABARD provides support to trained agricultural graduates to set up Agri-Clinics
and Agri Business Centres.
• These centres assist farmers in crop planning, providing quality seeds, and linking
them with markets for commercial crops like vegetables and fruits.

35
Model Bankable Projects:
• NABARD has developed model bankable projects for various commercial activities,
such as dairy farming, poultry, floriculture and mushroom cultivation.
• These projects provide detailed blueprints for loans and financial support to
entrepreneurs willing to enter commercial farming.
NABARD's Rural Infrastructure Development Fund (RIDF):
• Launched in 1995-96.
• RIDF finances irrigation, roads, and marketing infrastructure, critical for the success
of commercial farming.
• Enhances farmers' access to markets, increases land productivity, and supports high-
value crops.
Farmer Producer Organizations (FPOs):
• NABARD started promoting FPOs as a formal initiative around Feb 2020.
• NABARD promotes FPOs that help small farmer’s aggregate produce and
collectively market it.
• FPOs help smallholder farmers take part in commercial farming, thus improving
their bargaining power and market access.
 ICAR Initiatives
Krishi Vigyan Kendra (KVKs) - First KVK was established in 1974.
All India Coordinated Research Projects (AICRP):
• First launched in 1967 and has since expanded to various domains of agriculture.
• AICRP is ICAR's collaborative research initiative that develops location-specific
technologies in fields like horticulture, fisheries, poultry, and floriculture.
• Provides viable commercial farming models suited to different agro-climatic regions
National Agricultural Innovation Project (NAIP):
• NAIP focuses on value chain development in high-value commercial crops like
vegetables, fruits, and medicinal plants.
• Emphasizes post-harvest processing and market linkages, crucial for increasing
farmers' profits.

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Agri-Business Incubation Centres (ABIC):
• Established under ICAR's agribusiness development programs to nurture agri-
startups in commercial farming.
• Supports farmers and entrepreneurs with mentorship, technology, and funding to
start ventures in commercial crops and livestock.
 Government Schemes and State Initiatives
Pradhan Mantri Fasal Bima Yojana (PMFBY):
• Provides crop insurance to mitigate the risk in commercial farming. Covers crops
such as cotton, soybeans, horticultural produce, and other high-value crops.
• Launched in 2016.
• Under the Pradhan Mantri Fasal Bima Yojana (PMFBY), the premium rates for crop
insurance are as follows:
• Kharif Crops: Farmers pay a premium of 2% of the sum insured.
• Rabi Crops: Farmers pay a premium of 1.5% of the sum insured.
• Horticultural and Commercial Crops: Farmers pay a premium of 5% of the sum
insured.
National Horticulture Mission (NHM):
• Focuses on promoting high-value horticultural crops (fruits, vegetables, spices, and
floriculture).
• NHM supports the establishment of nurseries, provision of quality seeds, training, and
infrastructure.
• Launched in 2005 as part of the National Horticulture Board's activities.
Mission for Integrated Development of Horticulture (MIDH):
• Aims to increase the area under horticulture crops through commercial cultivation.
• Provides financial assistance for drip irrigation, greenhouses, and marketing of
horticultural produce.
Dairy Entrepreneurship Development Scheme (DEDS):
• Helps small farmers develop commercial dairy farms with assistance for breed
improvement, quality feed, and milk processing.

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Private Sector and NGO Models:
• NGOs promote community-based agro-enterprises, such as Honey production, silk
farming, and organic agriculture.
• These enterprises promote collective marketing and processing, enhancing commercial
viability.
Public-Private Partnerships (PPP):
PPPs in agriculture involve private players working with government agencies to
develop rural infrastructure, storage facilities, and markets. Common in high-value
agriculture like horticulture, floriculture, and organic farming.
Benefits of Commercial Farming-Based Models:
• Income Generation: By promoting high-value livestock, these models improve
farmers' income.
• Employment Opportunities: These models create rural employment in production,
processing, and value addition. Market Linkages and Export Potential: Many initiatives
provide export opportunities, especially in horticulture, organic farming, and
floriculture.
• Sustainability: Focus on sustainable agriculture practices, including organic farming,
water management, and soil health management.
Challenges and Limitations:
• Lack of Awareness and Training: Many small farmers need more information and
training on commercial farming.
• Market Volatility: Prices of commercial crops can be volatile, impacting farmers'
income.
• Infrastructure Gaps: Lack of infrastructure, particularly in remote areas, can affect
productivity and market access.
• Financial Constraints: Access to credit can be challenging for small and marginal
farmers.

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UNIT: 5
Risk & success factors in farming based livelihood systems, Schemes &
programs by Central & State Government, Public & Private
organizations involved in promotion of farming based livelihood
opportunities. Role of farming based livelihood enterprises in 21st
Century in view of circular economy, green economy, climate change,
digitalization & changing life style.
Risk and success factors in farming based livelihood systems.
Introduction to Farming-Based Livelihood Systems:
• Farming-based livelihoods refer to agricultural practices that provide sustenance and
income to farmers and their families.
• These systems often include crops, livestock, fisheries, agroforestry, and mixed
farming.
• They form the backbone of rural economies, particularly in developing countries,
contributing significantly to food security and income generation.
Risk Factors in Farming-Based Livelihoods
Farming-based livelihoods face numerous risks that can affect productivity and income.
These risks are categorized as natural, economic, social, and political.
Environmental and Climate Risks:
• Climate Change: Altered weather patterns, rising temperatures, droughts, and
flooding can disrupt planting and harvesting cycles.
• Extreme Weather Events: Hurricanes, cyclones, storms, and unseasonal frosts can
lead to crop and livestock loss.
• Pests and Diseases: Outbreaks affecting crops and livestock can cause massive yield
losses. Examples include locust swarms and diseases like foot-and-mouth in
livestock.
• Soil Degradation: Poor farming practices, erosion, and deforestation can lead to
reduced soil fertility and productivity.

39
Economic Risks:
• Market Fluctuations: Volatile prices of crops and livestock can make incomes
unpredictable.
• Input Costs: Rising costs of fertilizers, seeds, animal feed, and fuel can limit
profitability.
• Access to Credit: Limited or expensive access to financial resources hinders the
ability to invest in better farming practices and technologies.
• Global Trade Policies: Shifts in tariffs, subsidies, and trade agreements can impact
the competitiveness of farm products.
Social and Human Risks:
• Labour Shortages: Migration to urban areas and aging farming populations can
reduce available labour.
• Education and Skill Levels: A lack of technical knowledge in modern agricultural
practices and sustainable farming reduces efficiency.
• Health Risks: Farmers' exposure to chemicals and inadequate healthcare can lower
productivity and family income.
Political and Institutional Risks:
• Land Tenure Insecurity: Unclear or weak land rights can discourage farmers from
investing in land improvements.
• Government Policies: Inconsistent agricultural policies, inadequate support for
farmers, and corruption can stifle growth.
• Subsidy Reduction: Removal or reduction of agricultural subsidies can increase
production costs.
Technological Risks:
• Access to Technology: Limited availability or high cost of modern tools and
machinery can prevent farmers from improving efficiency.
• Technology Gaps: Inconsistent adoption of innovative farming practices can result
in productivity gaps between different regions.

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Success Factors in Farming-Based Livelihoods:
Successful farming requires a combination of favourable conditions, strategic
practices, and supportive policies. Key success factors include:
Adoption of Sustainable Agricultural Practices:
• Crop Diversification: Growing multiple crops reduces dependency on a single
source of income and spreads risk.
• Integrated Pest Management (IPM): Combines biological, cultural, and chemical
practices to control pest populations with minimal environmental impact.
• Conservation Agriculture: Techniques such as reduced tillage, crop rotation, and
mulching help maintain soil health and water retention.
Access to Markets and Value Chains:
• Market Integration: Ensures farmers can sell their produce at fair prices and access
local and international markets.
• Value Addition: Processing agricultural products (e.g., turning milk into cheese)
can significantly increase income.
• Cooperatives and Farmer Groups: Collective bargaining for inputs and market
prices can empower farmers.
Technological Innovation and Adoption:
• Mechanization: Adoption of tractors, automated irrigation systems, and harvesters
increases efficiency.
• Precision Farming: Use of GPS and satellite technology for soil and crop
monitoring allows more efficient resource use.
• Mobile and Digital Tools: Apps that provide weather forecasts, market prices, and
best practices enhance decision-making.
Strong Infrastructure and Support Systems:
• Irrigation Systems: Reliable water supply systems enable farmers to cultivate
throughout the year.
• Storage Facilities: Proper storage reduces postharvest losses and allows farmers to
sell when market conditions are favourable.

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• Transportation Networks: Access to roads and transport vehicles facilitates the
movement of goods to markets.
Access to Financial Services:
• Microfinance and Credit: Availability of loans and credit helps farmers invest in
seeds, equipment, and technology.
• Insurance Schemes: Agricultural insurance can protect against losses from weather
events and pests.
• Government Subsidies: Support for seeds, fertilizers, and farming equipment can
bolster productivity.
Education and Capacity Building:
• Training Programs: Workshops and training for farmers on sustainable practices,
market analysis, and business management can improve outcomes.
• Extension Services: Government or NGO provided advisory services bridge the gap
between research institutions and farmers.
Policy and Institutional Support:
• Effective Land Reform: Ensures farmers have secure ownership and rights to land.
• Investment in Research and Development: Funding agricultural research leads to
better seeds, practices, and technology.
• Subsidies and Support Programs: Government policies that include subsidies for
essentials (e.g., fertilizers) and infrastructure investments encourage farming growth.
Strategies to Manage and Mitigate Risks:
• Diversified Income Streams: Including alternative income sources like agro-
tourism, handicrafts, or seasonal employment.
• Risk-Sharing Mechanisms: Participation in community-based insurance and
cooperative saving schemes.
• Sustainable Water Management: Collecting and using rainwater efficiently can
mitigate drought impact.
• Disaster Preparedness and Response Plans: Community and individual farmer
plans for disaster response reduce long-term damage.

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 Schemes and Programs by Central and State Government, Public and Private
Organizations Involved in Promotion of Farming Based Livelihood System.
Central Government Schemes and Programs:
• PM-Kisan (Pradhan Mantri Kisan Samman Nidhi Yojana)
Objective: Direct income support to farmers.
Features: Provides 36,000 per year to small and marginal farmers in three equal
instalments.
Beneficiaries: Farmers owning up to 2 hectares of cultivable land.
• PMFBY (Pradhan Mantri Fasal Bima Yojana)
Objective: Crop insurance against natural calamities, pests, and diseases.
Features: Farmers pay a minimal premium (2% for Kharif, 1.5% for Rabi, 5% for
commercial crops). Government shares the remaining premium cost.
• RKVY-RAFTAAR (Rastriya Krishi Vikas Yojana)
Objective: Holistic development of the agricultural sector.
Features: Allocates funds to states based on their agriculture performance. Focus on
farm mechanization, organic farming, and skill development.
• National Mission on Sustainable Agriculture (NMSA)
Objective: Promote climate-resilient farming systems.
Submissions under NMSA:
i. Soil Health Management (SHM).
ii. Rainfed Area Development (RAD).
iii. Agroforestry Mission.
• National Food Security Mission (NFSM)
Objective: Increase production of rice, wheat, pulses and coarse cereals.
Features: Provides subsidies on seed distribution, training, and machinery.
Ministry of Rural Development Initiatives:
• MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act)
Objective: Provide livelihood security through employment.
Features: Allows creation of water conservation structures like ponds, wells, and check
Dams, which benefit agriculture.

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• National Rural Livelihoods Mission (NRLM)
Objective: Promote self-employment and skill development in rural areas.
Linkages: Encourages farming-based microenterprises and women-led self-help
Groups (SHGs).
Ministry of Fisheries, Animal Husbandry, and Dairying:
• National Livestock Mission
Objective: Increase productivity in animal husbandry, dairying, and fisheries.
Features: Supports breed improvement, fodder development, and processing units.
• PM Matsya Sampada Yojana
Objective: Promote the Blue Revolution by improving fish production.
Features: Focuses on aquaculture, cold storage, and market linkages.
State Government Initiatives:

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Public Sector Organizations and Bodies:
• NABARD (National Bank for Agriculture and Rural Development)
Focus Areas: Infrastructure Development: Provides funding for irrigation, warehouses
And rural roads.
Farm Producer Organizations (FPOs): Supports collective farming models.
Rural Innovation: Promotes aggrotech solutions.
• ICAR (Indian Council of Agricultural Research)
Activities: Research in crop improvement and animal sciences.
Dissemination of new technologies to farmers via Krishi Vigyan Kendra (KVKs).
• Agricultural Skill Council of India (ASCI)
Role: Conducts skill development programs.
Certification of farmers and agricultural workers in modern
Private Sector and NGOs:
• ITC Limited: e-Choupal
Objective: Provide market linkages and real-time information to farmers.
Features: Enables better price realization through direct procurement.
• Mahindra Agri Solutions
Focus Areas: High-yield seeds.
Mechanized equipment (tractors, harvesters).
Farm advisory services.
NGOs and Social Enterprises:
• BAIF Development Research Foundation
Focus: Sustainable rural livelihoods via livestock and watershed development.
• Self Employed Women's Association (SEWA)
Encourages women-led farming cooperatives.
• Digital Green
Uses ICT tools to promote agricultural practices.

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Key Focus Areas in Promotion of Farming Based Livelihoods:
• Financial Assistance: Subsidized credit and low-interest loans from, institutions
Like NABARD, cooperative Banks and regional rural banks.
• Technology Promotion: Use of Artificial Intelligence (Al), IoT, and drones for
precision farming. Soil testing laboratories under SHM programs.
• Capacity Building: Farmer training programs conducted by KVKs, NGOs, and ASCI.
• Infrastructure Development: Cold storage, market linkages, and transport facilities
under schemes like PM-Agriculture Infrastructure Fund.
• Diversification of Livelihoods: Integration of fisheries, poultry, and bee keeping
with traditional agriculture.
 Role of farming based livelihood enterprises in 21st century in view of circular
Economy, green economy, climate change, digitalization and changing life
Style
The 21st century has witnessed transformative changes in global economies and
lifestyles, which have greatly influenced the role of farming-based livelihood
enterprises. These Enterprises must adapt to emerging trends, including the circular
economy, green Economy, climate change mitigation, digitalization, and evolving
lifestyles.
Circular Economy and Farming-Based Enterprises:
The Circular economy emphasizes reducing waste, reusing resources and regenerating
Natural systems. Farming-based enterprises play a critical role by:
Utilizing Bio-Waste: Converting agricultural residues into compost, bioenergy, or animal
Feed to minimize waste and enhance resource efficiency.
Adopting Regenerative Practices: Using crop rotations, agroforestry, and
Conservation agriculture to restore soil health and biodiversity.
Promoting Closed-Loop Systems: Integrating crop and livestock systems where waste
from one becomes a resource for the other.

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Recycling Water: Utilizing treated wastewater or rainwater harvesting to Ensure
sustainable water use.
Green Economy and Sustainable Farming:
The green economy prioritizes Low-carbon, resource-efficient, and socially inclusive
growth. Farming-based Enterprises contribute by:
Producing Renewable Energy: Utilizing solar panels, wind turbines, and Biomass
energy solutions on farms.
Cultivating Organic Crops: Avoiding chemical fertilizers and pesticides, Promoting
Eco-Friendly products for healthier ecosystems.
Sustainable Supply Chains: Reducing the carbon footprint through local Sourcing
and short food supply chains.
Biodiversity Conservation: Preserving traditional crop varieties and Protecting
natural habitats.
Eco-Labelling: Encouraging consumer preference for sustainable products
through certification like organic, fair trade, and carbon-neutral farming.
Climate Change and Farming Enterprises: Climate, change poses both challenges
and opportunities for farming-based enterprises. Their role includes:
Climate-Smart Agriculture: Implementing practices like drip irrigation, drought-
resistant crops, and precision farming to cope with climate variability.
Carbon Sequestration: Using techniques like agroforestry, cover cropping, and
No-till farming to capture atmospheric carbon.
Disaster Resilience: Building infrastructure and systems to adapt to extreme weather
events, such as flood-resistant crops and improved drainage systems.
Promoting Agro ecology: Strengthening the resilience of ecosystems through diverse,
interdependent farming systems.
Contributing to Carbon Markets: Participating in carbon credit programs by

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reducing emissions or increasing sequestration.
Digitalization in Farming Enterprises:
The integration of technology is revolutionizing farming-based livelihood enterprises,
enabling higher efficiency, sustainability, and profitability.
Precision Agriculture: Using, drones, sensors, and GPS technologies to monitor and
optimize crop performance.
Digital Marketplaces: Empowering farmers to sell produce directly to consumers,
reducing intermediaries and increasing income.
Data-Driven Decisions: Leveraging big data and Al to predict weather, optimize
irrigation and improve yields.
Blockchain for Traceability: Ensuring transparency in food supply chains to build
consumer trust.
Remote Monitoring: Managing farms through loT-enabled devices, reducing the need
for on-site interventions.
Fintech Innovations: Providing farmers access to microloans and crop insurance via
mobile platforms.
 Changing Lifestyles and Consumer Preferences:
Modern lifestyles are characterized by an increasing awareness of health, sustainability,
and convenience, which influences farming enterprises:
Demand for Organic and Natural Products: Catering to health-conscious consumers
with chemical-free and minimally processed food.
Urban Agriculture: Supporting vertical farming, hydroponics, and rooftop gardening to
meet the needs of urban populations.
Value-Added Products: Producing processed or semi-processed foods like juices,
packaged snacks, and organic condiments.

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Customization and Delivery: Adopting direct-to-consumer models with personalized
options and subscription-based services.
Functional Foods and Superfoods: Meeting demands for nutrient-rich foods like
quinoa, spirulina, and chia seeds.
 Social and Economic Impact of Farming Enterprises: Farming enterprises
significantly affect rural livelihoods, employment and community development:
Job Creation: Providing employment opportunities in production, processing,
Marketing and distribution.
Empowering Women and Youth: Engaging marginalized groups in agribusiness
ventures, particularly through skill development and entrepreneurship.
Inclusive Growth: Promoting cooperative farming models and ensuring equitable
profit distribution.
Strengthening Rural Economies: Boosting local economies by creating backward and
forward linkages with industries.
Challenges:
• Limited access to technology and financial resources for smallholder farmers.
• Vulnerability to climate shocks and market volatility.
• Resistance to adopting new sustainable practices.
In conclusion, farming based enterprises are livelihood central to achieving sustainable
development goals in the 21st century. By embracing circular and green economy
principles, addressing climate change, leveraging digital technologies, and adapting to
changing lifestyles.

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