Offfarm

Offfarm, often written as off-farm or off farm, refers to economic activity and income generated outside the principal agricultural operation of a household. In practice, off-farm activities include wage labor in nearby towns or industries, seasonal harvest work, small-scale trading, crafts, and remittances. The term is commonly used in rural development and agricultural economics.

Off-farm income diversifies livelihoods and helps cushion households against farm risk, such as droughts, pests, or price volatility. It can support consumption, education, health, and savings, contributing to overall household resilience.

The share of income that is off-farm is shaped by factors including education, access to transportation and markets, farm size, land quality, credit, and local employment opportunities. Proximity to towns or industrial areas typically increases off-farm activity, while greater isolation can limit it.

Off-farm work can reduce reliance on farming and free resources for investment in land or inputs, potentially raising long-term productivity. Conversely, it may reduce labor available for farming and influence changes in land use or crop choices, depending on household priorities and time constraints.

Policymakers and researchers promote off-farm opportunities through rural infrastructure, skills training, financial services, and market linkages, aiming to strengthen household livelihoods without compromising agricultural productivity. Data from household surveys and development programs track the role of off-farm income in rural economies.