Abstract

Research shows that participation in rural non-farm activities exerts a pronounced impact on agriculture, household farm decisions, rural development, income and welfare as well as household food security. This paper investigates the impact of participation in non-farm activities on household income and food security among farm households in the Upper East and Upper West Regions of Ghana. Using the Recommended Daily Calorie Required (RDCR) approach, the study finds that 45 percent of households in the two regions are food insecure. Propensity score matching (PSM) results indicate that participation in non-farm work has significant positive effect on household income and food security status. The policy implications of the findings are discussed.

Highlights

  • The problem of food insecurity is rife in many developing countries of the world

  • The relevant questions this paper seeks to address are: 1) What are the food security status of farm households in northern Ghana? 2) What factors influence farmers’ involvement in non-farm activities in northern Ghana? 3) What impact do non-farm activities have on farm household income and food security status in northern Ghana? The main objective of the paper is to assess the impact of non-farm activities on household income and food security status of rural farm households in the Upper East and Upper West Regions of Ghana

  • This paper sought to investigate the impact of non-farm employment on household income and food security among farm households in the Upper East and Upper West regions of Ghana

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Summary

Introduction

The problem of food insecurity is rife in many developing countries of the world. emerging economies are experiencing rapid economic growth, resulting in increased food security scores, the gap between developed and developing countries is still wide. Agricultural development is essential for reducing hunger and poverty in rural areas, but non-agricultural growth is important as well [4] This brings into sharp focus on the role of non-farm activities. Non-farm income activities refer to all those activities associated with waged work or self-employment in income generating activities (including income in-kind) that are not agricultural but which generate income (including remittances etc.) in rural areas [2]. It typically involves activities such as construction, business (trade), rural tourism, processing (manufacturing) and/or marketing of agricultural products, repair services, transportation services, and extraction activities amongst others [2]. Smallholder rural farm households hold a portfolio of income sources, and non-farm income is a major component of that portfolio. From a policy standpoint, efforts must be geared toward enhancing rural households’ access to additional sources of income through non-farm employment

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