Question : Statement 1: Diversification of agricultural activities leads to increased farm income through value addition.
Statement 2: Diversification allows farmers to process and market their agricultural products.
Option 1: Both statement 1 and statement 2 are true.
Option 2: Both statement 1 and statement 2 are false.
Option 3: Statement 1 is true, but statement 2 is false.
Option 4: Statement 1 is false, but statement 2 is true.
Correct Answer:
Both statement 1 and statement 2 are true.
Solution : The correct answer is (a) Both statement 1 and statement 2 are true.
Statement 1 is true. Diversification involves expanding farm activities beyond traditional crops and exploring value-added opportunities. By processing and adding value to their agricultural products, farmers can command higher prices in the market and increase their farm income.
Statement 2 is also true. Diversification enables farmers to engage in activities such as food processing, agro-processing, and marketing of value-added agricultural products. By processing and marketing their products, farmers can capture a larger share of the value chain and access higher-value markets, leading to increased income.
Therefore, both statement 1 and statement 2 are true.
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