Abstract
Poverty incidence in Nigeria is higher among the rural-folks, that is, households that rely mainly on agricultural income. Income diversification is therefore seen as a way to secure income and to increase welfare of the farm households. This study investigated determinants of income diversification among farm households in Niger State, Nigeria. The study utilized data obtained from administering questionnaire to 287 farming households. Data were analyzed using descriptive statistics, and Tobit regression model. The study revealed that mean age, household size, and farm size of the respondents were 42, 7, and 2.82 respectively. A total of 46.4% of the respondents had no formal education and only 12.9% had attained formal education up to the tertiary level. Majority that is 94.8% had no access to credit. Results of the Tobit regression revealed that farm size, age, level of education, farm income, non-farm income, credit use, livestock ownership, household size, poverty status, and occupation were the significant determinants of income diversification in the study area. The study recommends increase in the level of literacy among rural farm households. The impact of institutional credit on employments has been shown which ought to require taking comprehension of this basic by the approach system of the State as a vital advancement issue at the grass root. And in addition, government should re-energize and re-invigorate the extension service division of the State Ministry of Agriculture through capacity building, training and provision of necessary equipment to carry out its functions since they are the only group that understands the farmers’ needs and idiosyncrasies.
Highlights
Diversification as a rustic work system is utilized as a part of modifying possibilities with a specific end goal to boost return, spread dangers, or accomplish other family objectives
This agrees with the findings of Awoniyi and Salman (2012), and Awotide, Kehinde and Agboola (2010) which pointed out that majority of the households that are engaged in non-farm income are still in their productive years
This is because, farm income can be a source of investment for non-farm activities, especially in situations where lack of liquidity and access to credit are critical barriers to entry, income derived from crop and livestock can support diversification strategies of farm households
Summary
Diversification as a rustic work system is utilized as a part of modifying possibilities with a specific end goal to boost return, spread dangers, or accomplish other family objectives. Maximization of return per unit of labour (Ellis, 2000) is another important element in livelihood diversification choices This principle foresees that, in any given point in time, a rural household will choose the most cost-effective opportunity to ensure maintenance of its consumption level. Social organization and culture can significantly influence the relative access of diverse gender (and age groups) to household’s capital assets (Ellis, 2000) or constraint/promote their mobility This might result in a different degree of involvement in diversification activities and/or in an unequal distribution of their benefits between genders (Warren, 2001). The non-farm sector offers potential to absorb a growing rural labour force, slow rural-urban migration, contributes to national income growth, and promotes a more equitable distribution of income (Lanjouw, 1997; Fikru, 2008)
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