Abstract:
This study focused on analyzing the determinants of income diversification among paddy
farming community in Anuradhapura district. The cross – sectional data used in the study
was collected from a survey done in Yala and Maha seasons in 2019/2010 which covered
five villages in Galenbindunuwewa division. From each village, 30 small scale paddy farmers
who were selected through multi- stage sampling technique and finally total of 150 farmers
were used. Status of income diversification was taken as binary dependent variable and
demographic, economic and farming characteristics were taken as independent variables.
Frequency analysis, descriptive statistics and independent sample T – test were used to
explore the basic features of income diversifiers and non- diversifiers across selected
farmers in the study. Results of frequency showed that 84% of the farmers diversified their
income and 16% of them were not diversified and independent sample t-test proved that on
average, farm income, age, farming experience and distance to the market were significantly
differ across diversified and non- diversified farmers in the study. To examine the
determinants of income diversification, binary probit model was employed and its estimated
results revealed that age of the farmer, land size and farming experience were negatively
whereas marital status, farm income and ownership of land were positively impact on the
income diversification at significant levels the study. The findings of the study assists to the
policy makers to formulate the appropriate strategies focus on paddy farming community in
the study area.
