Urban sprawl and farming practices: Examining farm diversification and its intensity in Hyderabad’s peri-urban areas

Urban Farm DB summary

A survey of 330 peri-urban farm households in Hyderabad, India, using multi-stage sampling and a Double Hurdle Model to analyze the decision to diversify farm activities and the intensity of that diversification. Results show the initial decision to diversify is strongly shaped by socio-environmental factors — proximity to urban areas, sole reliance on farming for income, household size and risk attitudes — while diversification intensity is largely determined by farm-specific resource conditions such as soil fertility and farmers' subjective assessment of production and market uncertainty. The study concludes that peri-urban farms in India are moving toward diversification, but at low intensity, particularly among small and semi-medium landholdings.