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### Abstract

The paper has discussed the income levels and livelihood issues of farmers on the basis of a large field study in Uttar Pradesh. The study has shown that agriculture is not able to provide sustenance to a large number of farmers in this state. The per-day per-capita income from agriculture has been found to be  15 for marginal farmers,  31 for small farmers,  45 for medium farmers and  84 for large farmers for 2011-12. Thus, all marginal farmers, who constitute over three-fourths of UP farmers, fall below the poverty line of ` 22 if they depend solely on agricultural income. Given the inadequacy of agricultural income to meet household expenditure, the small and marginal farmers have to devise livelihood strategy for their survival. The study has suggested a multi-sectoral integrated strategy of promoting agricultural and non-agricultural activities in the rural areas embedded in the local conditions, resources and institutions to meet the challenge of sustainable development in the state.