which is essential for the expansion of non-farm activities?
Answers
All the non- agricultural activities are deemed to be non-farming activities. However, there are two varied ways to better define non-farming activities. The first approach deals with the locus, i.e., the space in which the activities are taking place should essentially be a designated rural area. The second approach is that of the linkage criteria. The linkage approach has to do with different industries developing commercial linkages with the RNF (rural non-farm) sectors. Non-farming activities can include various ventures like handicrafts, household as well as non-household small-scale manufacturing, construction, mining, quarrying, repair, transport, community service etc, but of course in the designated rural areas. The non-farming activities thus, play a vital role in providing employment facilities to small-scale farm household or to the rural-urban migrating population. Studies show that the productivity of farming activities has been seen considerably reducing in the contemporary times. (Reports from Asian Productivity Organization, 2004). As a result, rural non-farm activities need to be most extensively and effectively developed, more than ever in the recent times. Not only would it contribute to the overall GNI (Gross National Income), it would also act as a financial aid for the rural population, whose main income is vested in agriculture.
Rural non-farming activities have become of primary importance in the changing contemporary times, because of many reasons. The reason being, the employment growth of the farm sector has not been consistent or of a reliable outcome, wherein rural non-farming activities play a major role in creating employment in the population. Secondly, if properly strategized, non-farming activities may prevent the migration of many rural people from rural to urban spaces, due to lack of employment opportunity. Thirdly, when employment opportunities go beyond the quintessential agricultural economy, it helps to bridge the urban-rural economic lacuna. Fourth, rural nonfarm activities incur less capital and employ a larger percentage of manpower/ labor. Further, rural industrialization, (falling under the category of non-farming activities) indirectly has ways to spin-off agricultural industries too. Finally, the rural spaces having the rural non-farming industries are seen to have much lesser unequal income distribution, compared to rural areas with the facility of non-farming industries.