  This paper used a primary data collected through a surveys among farmers in
rural Kedah to examine the effect of non farm income on poverty and income
inequality. This paper employed two method, for the first objective which is to
examine the impact of non farm income to poverty, we used poverty decomposition
techniques - Foster, greer and Thorbecke (FGT) as has been done by Adams
(2004). For the second objective, which is to examine the impact of non farm
income to income inequality, we used Gini decomposition techniques.
