Analyzing Household Farm Income, Off-farm Income and Mixed Income at Pho Yen Town, Thai Nguyen Province
Duong Van Son*, Le Van Bay
Citation : Duong Van Son, Analyzing Household Farm Income, Off-farm Income and Mixed Income at Pho Yen Town, Thai Nguyen Province International Journal of Political Science 2018 , 4(4) : 14-21.
There is marked differences between household (HH) farm income, HH off-farm income and HH mixed income among surveyed households. Of which HH farm income is 74.41 million VND (1 USD = 22,600 VND), HH off-farm income is 131.88 million VND, higher than farm income, indicating that off-farm income plays an important role contributing a large part to mixed income of the surveyed households; HH mixed income is 143.657 VND per year.
Total HH income of off-farm households is 179.8 million VND a year, and composite households is 157.5 million VND, considerably higher than agricultural households (only 92,0 million VND per year). Due to HH mixed income of rural households is lower than urban households, thereby participating in non-farm activities or off-farm activities could increase overall cash income of the households. If the income from offfarm or non-farm activities is used to finance agricultural input purchase or long term capital investments for agricultural production, it can be an important source of cash that potentially used to improve agriculture production.
If for HH farm income, 2 factors as on-farm labor and total land have positively correlated with the HH farm income at highest impact, then capital and off-farm labor are 2 highest positive impact factors for HH offfarm income, and as a result, capital and total labor have positively correlated with the HH mixed income also at highest impact. Such mentioned factors in this study influencing on the HH income are very significant and they can be able as a basis for income improvement of rural households.
During the urbanization process and structural economically transformation process, it would be nice if there is a movement or reallocation of farming land from the off-farm households at urban or sub-urban areas to the agricultural households aimed not only for the off-farm household's concentration on their off-farm activities, but also for urban agriculture development with high value crops and livestocks, and it also is needed to increase such resources for off-farm income increase. Actually, off-farm income can compete with farm activities by withdrawing family labor from farm activities. Although off-farm income is very important and off-farm income is a good policy instrument to increase farm productivity and improve rural household income, therefore policies must orient at supporting off-farm activities and off-farm income, but do not dampen or barrier farm activities and farm income of households.