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
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.
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.