1. INCOME SOURCES AND THE ROLE OF IN-KIND CONSUMPTION Agricultural production was just one source of cash income for Smallholder Diaries households. But their numerous nonagricultural production activities provided the majority of household net cash income at the median. When in-kind consumption of crops produced at home was factored into total household income, agricultural production income did increase markedly and provided approximately half of total household income at the median. Casual labor was also an important source of income for smallholder families, and in many cases it, too, involved tasks related to agriculture. ™hen the Smallholder ‰iaries began, all respondents in the sample indicated that agriculture was their primary source of income, cash or in-ind, though they were balancing a range of income sources in and out of the agricultural sector Œhey made it a priority to earn money from a range of sources due to the irregularity of their agricultural income and relatively more stable nonfarm income £ut they still self-identified as agricultural households and indicated that this was their most significant source of income Œhe data, however, showed a more nuanced picture Smallholder families in the sample had numerous sources of cash income, tending to fall into three categories: (i) agricultural production, (ii) casual labor, and (iii) other off-farm, nonagricultural sources such as managing a ‘‘ small business, receiving remittances, or engaging in wage labor ˆt the median, households had a total of eight income sources in –o—ambiue, …… in Œan—ania, and nine in aistan‘Ÿ Sample households in –o—ambiue and Œan- —ania had far more sources of nonfarming income, independent of their own agricultural production €n the Œan—ania sample, for example, at the median, households had two sources of income in agricultural production and nine related to other, off-farm activities (see igure ” and †ase …) Families in the Smallholder Diaries also earned the majority of their house- hold net cash income from their numerous nonagricultural production actiities ˆmong the sample families, the median proportion of household net cash income (ie, revenue less any associated expenses, such as stoc purchases for side businesses) from nonagricultural production sources was žŸ percent in ‘“ –o—ambiue, •“ percent in Œan—ania, and ”¡ percent in aistan (see igure ”) ut focusing only on cash income underplays the importance of agriculture to smallholder households Œhe relative importance of agricultural produc- tion income increases maredly when household consumption of crops is | 29
