Reducing Farm Risk though Diversification in Tomato Based Farming Systems of Eastern Dry Zone of Karnataka

Abstract

This study comprise of minimizing farm risk through diversification in tomato based farming systems (TBFS). Primary data was collected from 3 taluks of Kolar District, Karnataka viz., Malur, Mulbagal and Srinivaspura representing cultivation of tomato hybrids, High yielding varieties (HYVs) and both, respectively. The total sample size was 150 tomato growers, 50 from each taluk. Tomato was grown as a major crop in all the 3 taluks. Farmers had diversified to different crops and farm enterprises along with tomato in order to reduce their income risk. Herfindahl diversification index and Crop diversification index was calculated. Based on which, farmers having high and medium degree of diversification faced lower income risk as compared to those farmers having lower degree of diversification. In all the three taluks, the inclusion of livestock as a component under any TBFS lowered the income risk faced by the farmers. The results of quantile regression analysis showed that, the variable CDI (Crop Diversification Index) was significant across all quantiles showing that as the degree of farm diversification increased, the variability in total annual income of the farmers decreased as risk was reduced when the income was diversified from different sources or enterprises.