Economic Assessment of the Impact of Non-Agricultural Activities on Income from Crop and Livestock Production in Household Farms: The Case of Samarkand Region

This study investigates the impact of non-agricultural activities on the income generated from household farming in rural areas. The research is based on data from a social survey conducted among 1,843 household farms in the villages of Samarkand region. Using a Latent Class (Gaussian) model, household farms engaged in non-agricultural activities related to farming were classified into “green,” “yellow,” and “red” zones. Furthermore, to identify the relationship between household farm income and influencing variables, an ANOVA (Analysis of Variance) test was applied. To address issues of heterogeneity and multicollinearity and ensure robustness of the results, a Variance Inflation Factor (VIF) diagnostic test was conducted. In addition, a Tobit model was employed to economically assess the effect of innovations on income from household farming activities. The findings revealed that the development and/or establishment of non-agricultural activities linked to household farming in rural areas has a statistically significant impact at the 1 percent level (***p<.01). Based on the results, scientifically grounded recommendations have been developed to increase the income of household farms.

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