Rural Nonfarm Activity Income Diversification Among Smallholder Farmers in Deber Elias Woreda, Amhara Regional State, Ethiopia

Mezegbu Aynalem

doi:10.11648/j.ajere.20190402.15

Abstract

This research was carried out with the aim examining and understanding the different nonfarm diversification strategies pursued by households in Deber Elias Woreda. A multi stage sampling procedure was employed to select 120 households. First the Woreda Kebeles are stratified in to three categories based on the agro ecology. From each stratum, three sample target kebeles and respective villages selected for primary or secondary data collection. Descriptive statistics and binary logit model were used. Narration was used to analyze the qualitative data. The income portfolio analysis revealed that agriculture is the main livelihood activity in the study area contributing 86.9% and nonfarm activity income which accounts for 5.7% the remaining 2.3% share of the total income. Only 40.8% of the sample respondents participate in nonfarm diversification activities. Regarding the participants in diverse nonfarm activities in the study area female-headed households diversified more than male-headed households, better offs diversified more than poor, educated households diversified better than illiterates and households with large number of family members more diversified than those with small household size. The binary logit model result for determinants of nonfarm activity diversification reveals that sex of household head, educational status of household head, credit access; landholdings of households and household size were statistically significant. Finally, this thesis indicates the important policy implications suggesting that programs, projects and/or any interventions designed targeting to engage people in other income generating activities in Debre Elias woreda.

Highlights

Agriculture is the basic economic sector on which the country relies for its social and economic development
Female-headed HHs is most of the time more likely to be participated in nonfarm activity than male-headed households are. 51.2% of female-headed households diversified to nonfarm activity activities but only 36.3% of male HHs diversified to nonfarm activity income generational activities
Great differences were observed in the study area with regard to participation in nonfarm activity as far as sex of the household head was concerned

Summary

Introduction

Agriculture is the basic economic sector on which the country relies for its social and economic development. Developing nation’s agriculture is mainly dependent on environment and natural resource. Small-scale farmers in developing nations tend to diversify their income to diversify risk and to cope up hazards. The landholding per household is diminishing through time and people in these areas thinking another means of lives. The poor are observed to diversify income sources in order to cope with risk, seasonality and other adverse factors in agriculture, but almost no recognition has been given to this behavior by the policy processes previously unfolding in low income countries [2]. Policy makers should think diversification specially nonfarm

Objectives

Methods

Results

Conclusion