The core economic activity for agricultural households in developing countries takes
place at the site of their agricultural production (on the farm) and can be enhanced by
increasing productivity and access to markets (Chapter 2). Outside their own agricultural
production activities (off the farm) three broad spheres of economic activity provide
livelihood diversification opportunities for agricultural households (Figure 14.1):
● Non-farm, rural-based agricultural enterprise.
● Rural-based, non-agricultural enterprise.
● Urban-based employment.
Non-farm, rural-based agricultural enterprise, generally located in rural towns, includes agricultural processing and marketing, input supply and services and relatedi industries It represents the backward and forward linkages with agro-industry, thes servicesand trade sectors and the rest of the economy. And it has traditionally beenu undervaluedwhen assessing agriculture’s contribution to economic development, since agricultureis measured using information about harvests and the sale of raw materials.
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