Advantages of Diversified farming:

Better resource utilisation

It ensures steady utilisation of farm labour throughout the year. There is regular flow of income as well. Land can be used more economically and without loss of fertility. Soil fertility is kept intact. It also reduces the necessity for leaving the land fallow.

Better product utilisation

Different enterprises can be run on the same holding e.g. a farmer may raise crops and at the same time, may also keep a dairy farm. Diversified farming ensures a regular flow of returns as different enterprises mature at different times of the year.

Other advantages

Farmers with no training can safely start diversified farming. Diversified farming helps in absorbing a larger volume of labour force and sustaining a larger population.

Limitations of Diversified farming:

Poor resource utilization

Too much of diversification may lead to mismanagement. Since too many enterprises shall be competing for the use of limited resources and supervision, it is likely that some of the enterprises might get neglected.

Does not attract market

Problems also arise on account of marketing because diversification means small-scale production that may not attract the market.

Other disadvantages

Very often, a variety of machines and equipment required for varied purposes may not find optimum employment owing to limited requirement by the enterprises that are run on a small scale. This leads to under-utilization of resources, on the one hand, and mounting maintenance costs, on the other.