LAUSR

Farm and crop diversification is an important farm business strategy from the viewpoint of avoiding uncertain crop failures and loss of income, intensive cultivation of a single crop such as rice and wheat, indiscriminate use of chemical inputs and ensuring farm sustainability. However, the question remains whether farm diversification helps farmers reduce the extent of input use and cost with an improvement in farm income and welfare. Therefore, the present study aimed at examining the impact of crop diversification under the paddy-dominated farming system in India using national level farm household data pertaining to the year 2012–2013. We used propensity score matching technique for estimating the actual impact of crop diversification on the farm income and input use pattern. The study results show that crop diversification has significantly increased yield of paddy, farm income and reduced cost on labour, machinery and irrigation under paddy-dominated cropping system.