Unit 2: Agricultural Livelihood Systems – Concepts and Approaches

1. Agricultural Livelihood Systems (ALS): Meaning, Need, and Significance

Meaning of Agricultural Livelihood Systems

An Agricultural Livelihood System (ALS) extends beyond the simple act of farming. While "farming" refers to the production of crops and livestock, a "livelihood" encompasses the capabilities, assets, and activities required for a means of living.

According to the foundational definition by Chambers and Conway (1992): “A livelihood comprises the capabilities, assets (stores, resources, claims and access) and activities required for a means of living: a livelihood is sustainable which can cope with and recover from stress and shocks, maintain or enhance its capabilities and assets, and provide sustainable livelihood opportunities for the next generation.”

Therefore, an ALS is a system where the primary source of survival and economic stability is derived from agricultural activities, but it is analyzed through the lens of:

• Assets: Land, water, labor, knowledge, savings.
• Strategies: How farmers combine these assets (e.g., combining dairy with crop farming).
• Context: The vulnerability context (climate, market prices) in which they operate.

Need for Studying ALS

The shift from studying "agriculture" to "agricultural livelihoods" is necessary due to:

1. Complexity of Rural Life: Farmers rarely rely on a single crop; they diversify into livestock, labor, and non-farm activities to survive.
2. Vulnerability: Smallholder farmers are increasingly vulnerable to climate change, market volatility, and resource depletion. Production metrics (yield per hectare) do not capture human well-being.
3. Policy Failure: Policies focusing solely on increasing yield often fail to alleviate poverty because they ignore the social and financial constraints of the farming household.
4. Holistic Development: To understand why farmers migrate or why they remain in poverty, one must look at the entire system of their livelihood, not just the biological yield of their fields.

Significance of ALS

• Food Security: ALS analysis helps identify the root causes of food insecurity (availability vs. access).
• Poverty Alleviation: By identifying the specific "capital" lacking in a household (e.g., lack of financial credit vs. lack of water), interventions can be targeted effectively.
• Sustainable Resource Management: It links human behavior to environmental outcomes. A farmer may deplete soil nutrients not out of ignorance, but out of a livelihood crisis.
• Resilience Building: It focuses on enhancing the ability of farming communities to withstand shocks (droughts, floods, pandemics).

2. ALS Approaches and Conceptual Frameworks

The most widely accepted framework for analyzing livelihoods is the Sustainable Livelihoods Framework (SLF), popularized by the UK’s Department for International Development (DFID).

The Sustainable Livelihoods Framework (SLF)

The SLF views livelihoods as a dynamic interplay between assets, the vulnerability context, structures/processes, strategies, and outcomes.

A. The Asset Pentagon (The 5 Capitals)

Livelihoods are built on five categories of assets. The shape of the pentagon reveals the strengths and weaknesses of a farming household.

1. Natural Capital: The natural resource stocks from which resource flows and services are derived (e.g., land, water, genetic resources, biodiversity, air quality).
2. Human Capital: Skills, knowledge, ability to labor, and good health that enable people to pursue livelihood strategies.
3. Social Capital: Social resources upon which people draw (e.g., networks, membership of groups like cooperatives, relationships of trust, access to wider institutions).
4. Physical Capital: Basic infrastructure and producer goods needed to support livelihoods (e.g., transport, shelter, water supply, energy, farm machinery, seeds, fertilizers).
5. Financial Capital: The financial resources that people use to achieve their livelihood objectives (e.g., savings, credit, remittances, livestock that can be sold for cash).

B. The Vulnerability Context

This refers to the external environment over which people have limited or no control. It includes:

• Shocks: Floods, droughts, disease outbreaks, conflict.
• Trends: Population growth, technological change, national economic trends.
• Seasonality: Price fluctuations, employment opportunities, food availability.

C. Transforming Structures and Processes

These are the institutions, organizations, policies, and legislation that shape livelihoods.

• Structures: Public sector (govt ministries), private sector (markets), civil society (NGOs).
• Processes: Laws, policies, societal norms, and market incentives.
  • Example: A Minimum Support Price (MSP) policy is a process that affects the financial capital of a farmer.

D. Livelihood Strategies

The choices farmers make to achieve their goals:

• Agricultural Intensification: Getting more output from the same land (e.g., high-yield varieties).
• Agricultural Extensification: Expanding land area.
• Diversification: Adding new activities (e.g., beekeeping, poultry, or non-farm labor).
• Migration: Seasonal or permanent movement for work.

E. Livelihood Outcomes

The results of the strategies:

• Increased income.
• Increased well-being.
• Reduced vulnerability.
• Improved food security.
• Sustainable use of natural resources.

3. Definition and Scope: Farming Systems vs. Farming-Based Livelihood Systems

While often used interchangeably, these terms represent different scales of analysis.

Farming Systems (FS)

Definition:
A Farming System is a decision-making unit comprising the farm household, cropping systems, and livestock systems, which transform land, capital, and labor into products for consumption and sale. It focuses on the technical and biological interactions within the farm boundary.

Scope of Farming Systems:

• Resource Allocation: How land and water are distributed among crops and animals.
• Interdependence: The relationship between components (e.g., crop residue feeds cattle; cattle manure fertilizes crops).
• Production Oriented: Primary focus is on maximizing biological yield and farm profit.
• Boundary: Usually limited to the physical farm and the household's labor inputs.

Farming-Based Livelihood Systems (FBLS)

Definition:
A Farming-Based Livelihood System places the human/household at the center. It views farming as just one (albeit major) strategy among many used to maintain a standard of living. It integrates the farm into the broader socio-economic and political context.

Scope of FBLS:

• Multi-sectoral: Includes off-farm income (wage labor), non-farm income (small business), and remittances.
• Social & Political: Considers gender roles, power dynamics, and access to government schemes.
• Coping Mechanisms: Analyzes how households survive during lean seasons (borrowing, eating less, migrating).
• Sustainability: Focuses on long-term human well-being and capability enhancement rather than just yield.

Key Differences Table

4. Prevalent Farming Systems in India Contributing to Livelihood

India's geographical diversity results in distinct farming systems. Each contributes to livelihoods differently based on agro-climatic conditions.

A. Rice-Wheat System (Indo-Gangetic Plains)

• Region: Punjab, Haryana, Western Uttar Pradesh.
• Characteristics: Intensive irrigation, high use of mechanization and agrochemicals.
• Livelihood Contribution:
  • High Income: Provides substantial cash income and national food security.
  • Employment: Generates demand for labor (often migrant) and machinery services.
  • Challenge: Environmental degradation (groundwater depletion) threatens long-term livelihood sustainability.

B. Rice-Rice System

• Region: Coastal Andhra Pradesh, Tamil Nadu, Kerala, West Bengal, Odisha.
• Characteristics: Wet, humid climates; dominant in river deltas.
• Livelihood Contribution:
  • Food Security: Staple food for the household.
  • Integration: Often integrated with fish farming (pisciculture) or duck farming in low-lying areas, providing protein and extra income.

C. Rainfed Farming System (Dryland Agriculture)

• Region: Deccan Plateau, Maharashtra, Karnataka, Rajasthan.
• Crops: Sorghum, Millets (Jowar, Bajra), Pulses, Oilseeds, Cotton.
• Livelihood Contribution:
  • Subsistence & Cash: Millets for food, cotton/oilseeds for cash.
  • Livestock Dependence: Because crop failure is common (high vulnerability to drought), livestock (goats, sheep, cattle) acts as a crucial "insurance" asset.
  • Migration: High rates of seasonal migration due to lack of year-round farm work.

D. Mixed Crop-Livestock Farming System

• Region: Prevalent across almost all of India.
• Characteristics: Complementary combination of crop production and animal husbandry.
• Livelihood Contribution:
  • Risk Reduction: If crops fail, milk or meat provides income.
  • Cash Flow: Dairy provides daily/weekly liquidity, whereas crops provide income only at harvest.
  • Nutrition: Access to milk and eggs improves household health (Human Capital).

E. Hill and Mountain Farming Systems

• Region: Himalayas (Himachal, Uttarakhand, North East) and Western Ghats.
• Characteristics: Terrace farming, horticulture (fruits/vegetables), agroforestry.
• Livelihood Contribution:
  • High Value: Focus on apples, stone fruits, and spices provides higher returns per unit area than cereals.
  • Diversification: High reliance on forest resources (fuel, fodder) and tourism.
  • Jhum/Shifting Cultivation (North East): Traditional system ensuring food security and cultural identity, though under pressure to change.

F. Coastal and Island Systems

• Region: Coastal belts of Konkan, Malabar, Coromandel.
• Characteristics: Coconut plantations, paddy, fisheries.
• Livelihood Contribution:
  • Diversification: Households often engage in fishing (capture or culture) alongside agriculture.
  • Processing: Value addition (coir industry from coconut, fish processing) creates off-farm employment.

G. Plantation Farming Systems

• Region: Assam, Darjeeling, Kerala, Karnataka (Coorg/Chikmagalur).
• Crops: Tea, Coffee, Rubber, Spices.
• Livelihood Contribution:
  • Wage Labor: Operates like an industry; livelihoods are often wage-based rather than owner-based for the workers.
  • Export Oriented: Highly sensitive to global market prices (Vulnerability Context).

H. Integrated Farming Systems (IFS)

• Concept: Scientifically designed combinations (e.g., Crop + Fish + Poultry + Mushroom) promoted to enhance livelihoods.
• Livelihood Contribution:
  • Resource Efficiency: Waste from one component (poultry manure) becomes input for another (fish feed).
  • Continuous Income: Round-the-year income generation.
  • Sustainability: Reduces reliance on external chemicals and improves soil health.