A majority of land holders in Bhutan are small peasants and majority of livestock owners is
affluent herders. In an agricultural economy, critical farm resources are land, livestock and
labour. Agricultural activities are the most important source of income for Bhutanese which
actually is the product of land. Income had been one of the important determinants of vibrant
economy in every country. Every government focuses on the diverse measures to improve the
income status of its people through introduction of altered facilities and techniques. In fact land
also had been one of the main focuses of government in order to improve the living standard of
the people. However, the role of land in relation to income and the association between
household income from sales of agricultural products and operated landholding is unknown in
Bhutan.
This study was conducted with the objective of determining the positive or negative association
between household income from sales of agricultural products and operated landholding in
Bhutan with the research question ‘what role does land play in relation to income?’ The paper
was hypothesized that higher the operated landholding, higher will be the income and lower the
operated landholding, lower will be the income. Thus, taking household income as a dependent
variable and operated landholding as independent variable, Pearson’s correlation and
regression model of statics was used.
The major findings of the study depicted no strong association between household income and
operated landholding and very low impact of operated landholding on the household income
generation. Thus, the operated landholding was found not to be the good indicator of household
income generation in Bhutan.
The study recommends the future researchers to focus on finding other factors affecting the
generation of household income because operated landholding did not prove to have the strong
correlation with household income generation for Bhutanese.