Off-farm Income Research Articles

Determinants of rural household livelihood dependence on non-timber forest products: A case study from Inanda Community, KwaZulu-Natal, South Africa

Natural forest resources are the most accessible sources of services, products and incomes for many adjacent rural communities. However, the declining resilience of forests and agricultural sectors particularly in South Africa is concerning and a real public policy challenge. Little is known about the determinants of rural community dependence on natural forests, and the importance of this dependence to rural livelihoods and environmental outcomes. This study investigated factors affecting rural household level of forest dependence and the contribution of natural forests to rural household livelihoods in the “KwaZulu-Natal Sandstone Sourveld (KZNSS)” ecosystem. Employing survey data from 150 forest-dependent households and a logit-transformed Ordinary Least Squares (OLS) model, the study found that there is significant level of forest dependence in the study area. The empirical findings showed that the contribution of forest resources to rural livelihoods is significantly influenced by off-farm incomes, employment incomes, forest vouchers received from the “Wildlands Project” in exchange for planting trees, values of household assets, changing of time and dates in visiting the forest for the collection of forest products, and perceived changes in temperature. These findings imply that institutional arrangements for programs like the “Wildlands Project” need to be developed from the beginning with the participation of all pertinent stakeholders for everyone to accept it and understand the regulations. Additionally, legislative changes are needed to help rural residents sustainably support their livelihoods and diversify their sources of income to build resilience and ease pressure on natural forests.

AD|ARC (Administrative Data Agri-Research Collection): Linking Individual, Household and Farm Business Data for Agricultural Research.

ObjectivesTo create an anonymised data resource of farm households in the UK to generate evidence to support policy development, implementation and evaluation; improve understanding of farm family socio-economic characteristics; and assist all stakeholders interested in understanding about the health and well-being, resilience and prosperity and spatial properties of farming communities. ApproachThe AD|ARC resource is being created in each UK country. The core dataset comprises of linking together existing agricultural datasets (farm business activity data, Rural Payments data) the Inter Departmental Business Register and the Population Census. This hub dataset is linked to the health and education data available in each country. The research is being conducted in a separate but coordinated way across the UK, harmonising the data to allow aggregation to a UK level where possible. Our research objectives are in four broad categories of Socio-Demographics, Health and Well-being, Prosperity and Resilience and Environment and Place. ResultsThe presentation will report on initial findings from the socio-demographic research theme where researchers have investigated the composition and characteristics of farming households both in terms of the farm business (e.g. farm type, turnover, active farm diversification) and individual characteristics (e.g. age, educational attainment, off-farm income streams). From this analysis it will be possible to determine the degree of homogeneity that exists within the farming population for key indicators, the degree of homogeneity that exists amongst the broader group of farm households members for key indicators, and the extent to which farmers and farm household members conform to the socio-economic characteristics of the non-farming rural population. Results will be assessed for policy relevance and areas of ongoing investigation will be highlighted. ConclusionAgriculture is currently facing a range of challenges with little known about the impact on farmers and farming households. AD|ARC introduces a new, powerful and versatile resource that will inform debate and policy decision-makers, potentially leading to better outcomes on a range of issues relevant to farmers and farming communities.

The Impact of Collective Forestland Tenure Reform on Rural Household Income: The Background of Rural Households’ Divergence

As the direct subject of collective forestland tenure reform, increasing farmers’ income is an important goal of collective forestland tenure reform and the key to sustainable management of forest resources. Based on the survey data of 1276 rural households in 18 counties in 9 provinces, we construct a theoretical analysis framework of the impact of collective forestland tenure reform on household income from the perspective of rural household differentiation and elucidate the mechanism of the effect of collective forestland tenure reform on household income in the context of the rural household differentiation. The results of the empirical analysis show that, firstly, the collective forestland tenure reform significantly increases the total income, forestry income, and off-farm income of rural households, but the effect of income increase differs significantly among different groups of rural households with different income levels, showing the characteristic of “benefitting the rich more than the poor”. Secondly, as rural household differentiation deepens, there is a moderating effect of rural household differentiation in the income-raising effect of collective forestland tenure reform, i.e., collective forestland tenure reform has a stronger marginal effect on the forestry income of shallowly differentiated rural households and a weaker marginal effect on their off-farm income compared to deeply differentiated rural households. Finally, the income increase effect of collective forestland tenure reform shows significant situational dependence in both forestland operation scale and human capital endowment. The income-raising effect of collective forestland tenure reform is stronger for forestry income of large operation scale farmers, while it is stronger for off-farm income of small operation scale farmers; the income-raising effect of collective forestland tenure reform is stronger for farmers with high quantity and quality human capital endowment than for farmers with low quantity and quality human capital endowment. Therefore, this paper attempts to provide a policy adjustment idea to deepen the policies related to collective forestland tenure reform by starting from the farmer differentiation side.

Integration of biogas technology into livestock farming: Study on farmers’ willingness to pay for biodigesters in Madagascar

Substituting fuelwood by biogas contributes to fighting climate change and improving household sanitation in developing countries. However, in Africa, biogas technology is not well integrated into rural households yet and is still in embryonic stage due, among others, to the low purchasing power of farmers. A study was therefore conducted to investigate the farmers' willingness to pay (WTP) for biodigesters in Madagascar using the dichotomous choice question approach of contingent valuation. The results showed that farmers’ WTP were affected significantly and positively by the cost of energy for cooking (probability to accept the bid increased by 0.020), number of dairy cows (0.060), income from agriculture (0.156), off-farm income (0.229), and having experience on borrowing money from bank or microcredit institutions (0.253). However, negative responses were observed related to the increase of biodigester installation cost (probability to accept the bid decreased by 0.023), land area (0.002) and the utilization of manure (0.029). With a constant installment payment plan for a period of 3 years, the average WTP was 18% less than the estimated price of a biodigester upfront cost. Considering the importance of socio-economic characteristics of farmers on biogas integration, the results reported in this study are valuable decision-support tools for government, NGOs, associations, and companies interested in promoting biogas technology in developing countries.

Impact of Farmers’ Climate Risk Perception and Socio-Economic Attributes on Their Choice of ICT-Based Agricultural Information Services: Empirical Evidence from Pakistan

In Pakistan, research on information and communication technologies-based agricultural information services (ICTbAIS) have gained significant attention owing to the overwhelming population of smallholder farmers (whose information needs are unable to be met by the conventional extension services) and the increasing incidence of climatic risk. This study is, therefore, conducted in the Punjab province of Pakistan (mixed cropping region) to explore farmers’ use of ICTbAIS and understand the relationship between farmers’ socio-economic attributes, risk perception, and choices of ICTbAIS. A sample of 480 farmers was drawn using a multistage sampling approach, and farmers were interviewed face-to-face. To analyze the dataset, a multivariate Probit (MVP) model was employed. The results show that Television (TV) and mobile-based advisory and mobile-based consultations appeared to be the most used ICTbAIS, followed by radio and internet-based advisory. The estimates of the MVP model showed that farmers’ age, education, farmland, tenancy status, off-farm income, and climate risk perception are significant determinants of their choices of ICTbAIS. Based on our results, we suggest policymakers and extension agencies to improve the content of ICTbAIS and make efforts for the awareness and training of farmers regarding the use of contemporary ICTs.

Determinants of Food Insecurity and the Choice of Livelihood Strategies: The Case of Abay Chomen District, Oromia Regional State, Ethiopia.

Most of the sub-Saharan African countries including Ethiopia were affected by the food insecurity issue. This study aimed to analyze the drivers of food insecurity, the choice of livelihood strategies, and factors that impact the choices of food security strategies in response to food insecurity in Abay Chomen District of Ethiopia's Oromia region, Ethiopia. The result of this study is based on primary data and obtained from 150 randomly chosen sample households and secondary data generated from various sources. As for the technique of data analysis, this study employed descriptive statistics for the food insecurity index, as well as a binary logistic model and a multinomial logit model for the choice of household livelihood techniques. The findings of the survey showed that 51.3% of the households were found to be food-insecure and 48.7% food-safe in the study area. Furthermore, the result indicated that the average calorie consumption of the households surveyed was 2008.54 kcal for each adult equivalent per day, which is below the lowest calorie necessity of 2200 kcal. The estimated logistic model outcome on the drivers of household food insecurity confirmed the oldness of the household leader, larger family holder, and off-farm income affects negatively, while the gender of the household leader, the size of the built-up area, the number of livestock holdings (except oxen), the number of oxen owned, access to credit, the participation in the sale of cattle, and others affect positively. In addition, the multinomial logit model result indicates that the educational status of the household leader, the size of livestock farming, the number of oxen possessed, access to credit, remoteness to the market, and monthly agricultural earning are the main drivers of the choice of livelihood strategies of concern for the food insecurity of households. As a result, this research attempted to produce a result of analysis with a defined scope, although many questions remain unsolved. Future studies should concentrate on presenting fundamental data on the factors that affect food security status and livelihood strategy, the social, political, natural, and environmental aspects, the descriptive information on the shopping habits of people who experience food insecurity, and the key aspects that increase the vulnerability of the rural poor to food insecurity.

Factors influencing Adoption of Irrigation Technologies among Smallholder Farmers in Machakos County, Kenya

The study examined the factors that drive decisions to adopt and use irrigation technologies among smallholder farmers in Machakos County, Kenya. Data were collected from a sample of 300 smallholder farmers. Cross-sectional survey design, a multistage sampling procedure and random sampling method were employed. Percentages, means and econometric analysis were used in data analysis. Results showed that, 31.7% of the respondents practiced irrigation. Sex of household head, education, farm size, off-farm income, credit accessed and access to extension services positively influenced adoption of irrigation technologies. Adoption intensity was positively influenced by gender, off-farm income, farming experience, primary occupation and extension services. As a result, it is suggested that while formulating development strategies and programs for smallholder farmers, agricultural extension organizations should give priority to these factors.

Does anti-poverty intervention strengthen mental resilience? Evidence from the COVID-19 shock on targeted poverty alleviation program in China

ABSTRACT Resilience is beneficial for poor households to overcome the negative shocks and shake off the poverty trap completely in the long run. In this article we evaluate the impact of poverty alleviation intervention on mental resilience by exploiting the natural experiment of the COVID-19 shock. Using the survey data collected in early March 2020 from underdeveloped region in West China, we address the impact of targeted poverty alleviation program (TPAP) on confidence level of off-farm and total income recovery using the difference-in-difference method. We find that the program enhances mental resilience for the out of poverty households rather than the in poverty households, especially in terms of confidence level of off-farm income recovery. In addition, we also find that proactivity of employment takes account of the impact of TPAP on confidence level of off-farm income recovery.

Do Subsidies Decrease the Farm Income Inequality in Hungary?

The paper investigates the impact of different sources of income on farm household income inequality in Hungary using Farm Accountancy Data Network dataset for the period 2007-2015. The decomposition of the Gini coefficients by income sources is applied to focus on the impact of the policy shift from market to government support on farm household income inequality. Off-farm income are rather stable with a slight increase impact on farm household income inequality. Pillar 1 for direct income support subsidies have remained more important than Pillar 2 for rural development subsidies for farm income due to the importance of direct payments or single area payments for crop production. A slight increase in the importance of subsidies from Pillar 2 can be linked to a policy shift towards targeting farms in less favoured areas, and a greater role of agri-environmental and other rural development payments. The most striking finding is regarding instabilities, declining pattern, and for a large majority of farms negative market income. Subsidies from Pillar 1 reduced, while market income increased farm household income inequality.

A General-Equilibrium Model of Labor-Saving Technology Adoption: Theory and Evidences from Robotic Milking Systems in Idaho

Automatic milking systems (AMSs) have become increasingly common in the US in the past few years. Recent surveys from Idaho, one of the largest dairy-producing states, as well as from other states and countries, suggest that: 1. among farms adopting robotic milking systems, few are reporting less labor usage after adopting this labor-saving technology; 2. small farms rather than large farms are adopting (or more interested in adopting) robotic milking systems. In this article, we propose a series of new modeling strategies, which introduces the role of general-equilibrium effects to explain these new stylized facts. We show that: first, farms adopting labor-saving technology may, in fact, use more labor to compensate for the loss in the value of labor; second, when smaller farms experience more labor efficiency gains or value their leisure time (or off-farm income) more, they are more likely than larger farms to adopt the new technology. We contribute to the technology-adoption literature in two important ways. First, to our knowledge, this is the first article that introduces general-equilibrium effects to the technology-adoption literature. Second, this is also the first article that provides a theoretical perspective to explain the stylized facts in the adoption of robotic milking systems.

Impact of Labor Migration on Chemical Fertilizer Application of Citrus Growers: Empirical Evidence from China

Due to the growing trend of rural labor migration, farmers’ labor allocation under the condition of constant time endowment has gradually become a key factor in the transformation of green agricultural production methods. Using the propensity score matching method, this paper verified the influence of labor migration on citrus growers’ fertilizer application using 814 survey data from Sichuan Province, China. The study found that the boosting effect of capacity accumulation brought on by farmers’ labor migration was greater than the weakening effect of labor constraints and that the average chemical fertilizer application per acre decreased from 6.95 to 6.74 after farmers’ labor migration, a 3.06 percent decrease. Second, labor migration reduces chemical fertilizer application by allowing farmers to acquire knowledge and technology for green agricultural production and to increase off-farm income. Third, the choice of labor migration by farmers with higher agricultural incomes and younger ages promotes a reduction in their chemical fertilizer application. Therefore, this paper makes the following suggestions: the government should appropriately guide farmers in their labor migration decisions, increase public awareness of green agricultural knowledge and technology, and encourage farmers to to invest their off-farm income in green production. Farmers with higher agricultural income and younger ages, in particular, should be encouraged to choose labor migration and train to become new agricultural business entities.

Farm Businesswomen's Aspirations for Leadership: A Case Study of the Agricultural Sector in Queensland, Australia

In Queensland, Australia, more than half of all women working in agriculture are employed as farmers or farm managers, and they contribute 33 percent of all on-farm income. However, women play a major role in contributing to day-to-day living and farm survival through their off-farm earnings, which is estimated to contribute an estimated $2,715 million or 84 percent of all off-farm income. Despite this major economic and social contribution, little is known about the barriers they face in achieving their leadership goals. In this article we analyse qualitative data from workshops with Queensland farm businesswomen using Acker's concept of the “ideal worker” and inequality regimes theory (1990, 2006) to highlight the issues farm businesswomen face when aspiring to become leaders and we develop the concept that the “ideal farmer” is male. We find that there is a long way to go for these women in the state of Queensland to achieve their leadership goals in this traditionally male-dominated industry. We identify that woman want to expand their roles and undertake leadership opportunities and be recognized by their partners and industry for the contributions they make. Structural (micro) and organizational (meso) level barriers and enablers both hinder and assist farm businesswomen to achieve their leadership goals.

Does fallow policy affect rural household income in poor areas? A quasi-experimental evidence from fallow pilot area in Northwest China

The implementation of China’s fallow policy has attracted much attention in the recent years, while its impact on the rural household income in poor areas is rarely known. This study evaluates the impact of fallow policy on the total household income (THI) of farmers in poor areas of China, and further explores their mechanism and heterogeneity. We use a quasi-experimental design and a survey to gather research data from 48 pilot and non-pilot villages of Gansu Province, China, combining with the PSM technique and PSM-QR method to investigate this effect. The results showed that fallow policy has a positive effect on THI, and the finding is robust. Whereas, the effect is different among various income groups, which is characterized by “benefiting the rich but not benefiting the poor”, that is, the fallow policy aggravates income inequality in villages. Mechanism analysis illustrated that fallow policy significantly reduces crop income, but has no impact on livestock income and property income, and it improves THI by providing fallow compensation to increase transfer income, and promoting off-farm employment to increase off-farm income in the meantime. Finally, heterogeneous exist in the income effect in terms of policy characteristics such as participation level, compensation standard and stewardship pattern. This study generates important policy implications for the Chinese government to further improve fallow policy and rural households’ income in poor areas.

Factors Influencing Internal Labour Migration from Agriculture Sector to Non-agricultural Sector in Bangladesh: An Empirical Analysis

Aims: In past, labour was extensively used in agriculture sector and there was huge surplus labour in agriculture sector. However, such trend has recently been changed where surplus labour in agricultural sector has reduced significantly and agriculture sector compete with non-agricultural sector in terms of hiring labour. Thus, the present study was undertaken to analyze the determinants of labour migration from agriculture sector to non-agricultural sector in Gopalganj district of Bangladesh.
 Place and Duration of Study: The study was conducted at 12 villages of three upazilas (Gopalganj Sadar, Tungipara and Kotalipara) in Gopalganj district. For the study, data were collected during the period from January to March in 2021.
 Methodology: To this end, primary data were collected from agricultural labours. Descriptive statistics and simple random sampling technique were used in this study. Binary logistic model was used to analyze the collected data. In addition, five point likert scale was used to rank the barrier towards internal labour migration.
 Results: Results found from the logit model indicate that factors like family size, education, past experience, access to available information, transportation facilities, and savings are positively related with the log of odd ratio in favor of labour migration from agriculture sector to non-agricultural sector while wage rate, age, off-farm income and farm holdings are inversely related with labour transfer from agriculture sector to non-agricultural sector. In addition, respondents in the study area have recognized lack of proper technical training as the major constraint in labour migration with a mean value of 4.48.
 Conclusion: The present study recommends that government should take initiatives to open skill development institutions in rural level so that agricultural labour can take training. Regarding necessary information on non-agricultural jobs, it can be recommended that government, local agents and NGOs, in case of migration, should take proper initiatives so that agricultural labours can easily get information about non-agricultural jobs.

Vaccination of household chickens results in a shift in young children’s diet and improves child growth in rural Kenya

Childhood growth faltering remains unacceptably high in sub-Saharan Africa. Rural communities dependent on household food production with limited off-farm income or liquid assets to bridge seasonal food availability are especially vulnerable. A cross-sectional survey in Siaya County, Kenya identified 23.5 and 4.8% of children under 5 y of age as stunted and wasted, respectively, using height-for-age Z (HAZ) scores to detect stunting and weight-for-height Z (WHZ) scores for wasting. Although these households are classified as living in poverty or extreme poverty with very limited off-farm income, households commonly have on-farm resources that could be developed to improve nutrition. While 95% of these households have chickens and consumption of eggs was shown to increase childhood growth by an average of 5%, the average flock size is small and constrained by high mortality due to infectious disease. We hypothesized that interventions to relieve this constraint would translate into household decisions influencing the diets and growth of children. Here, we show that vaccination of chickens against Newcastle disease has a causal impact on children’s consumption of animal source foods rich in protein and micronutrients relative to a high-carbohydrate, grain-based diet. Children in treatment households (chicken vaccination) showed overall increases in scores for both HAZ and WHZ relative to control households, benefiting both girls and boys. The findings demonstrate the impact of directing interventions at common on-farm assets managed by women in rural communities and support programs to enhance productivity at the household level.

Farmer’s perceptions on risk and determinants of risk management strategy in integrated cattle and crops farming systems

The research was conducted to analyze farmers’ risk perceptions and factors that influence farm-ers' decisions in implementing risk management strategies to integrated farming of cattle and crops. This study used a survey method by conducting interviews to 150 respondents who were divided into two patterns based on the composition of the farming practice. Pattern I practice cattle-rice-corn-rice business and Pattern II practices cattle-rice-corn-soybean in Grobogan District, Central Java, Indone-sia. Data were collected in January - May 2019 and were analyzed using probit model on the risk man-agement strategies adopted consisting of credit, insurance, partnerships, and off-farm income. The re-sults showed that 59.15 percent of pattern I farmers and 47.06 percent of pattern II farmers perceived the risk of farming due to climate, market, biological and financial in the high category. Farmers' deci-sions in implementing risk management strategies were influenced by farmers' perceptions of climate, market, biological and financial risks.

Analysis of risk management practices among cassava farmers in Ideato south local government area, Imo State, Nigeria

Risks are pervasive and inescapable in agriculture. There has been great concern about the problems posed by risk in agriculture. This apprehension stems from the harmful effects of risk on the output of farmers in Nigeria. This study examines risk management practices among cassava farmers in Ideato South Local Government Area (LGA) of Imo State, Nigeria. It specifically sought to identify the types of risks encountered, management practices adopted, and socio-demographic factors that influence cassava yields. The study used purposive and multistage sampling techniques to sample 90 cassava farmers from seven autonomous communities in Ideato South LGA. Data were collected using a structured questionnaire. Inferential and descriptive statistics such as multiple regression model, mean, percentage frequency counts were used in data analysis. Findings showed that poor yield due to bad weather conditions and inadequate transportation systems were the most intense risks faced by cassava farmers. The major farmers’ risk management strategies in order of importance were mixed cropping, mixed farming, off-farm investment and Insurance. Insurance was least ranked mainly because the farmers lacked adequate information on the insurance benefits. Off-farm income and farming experience were the socio-demographic variables that positively influenced the output of cassava, implying that increase in these variables would increase the output of cassava. On the other hand, age as a variable was significant but had adverse effects on output. The findings show that risk cannot be eliminated in the agricultural production process because agricultural production has a high dependence on the vagaries of nature. The study recommends that farmers be encouraged to diversify their farming operations through a diversification process where the farmers produce several products rather than cassava, a single product. The use of improved cassava varieties should be encouraged. Additionally, farmers should increase their involvement in more income-generating activities to plummet the risk among cassava producers. Key words: Risk, Management, Cassava, production, farmers, Ideato South LGA, regression model, Nigeria

Crop Cultivation at Wartime – Plight and Resilience of Tigray’s Agrarian Society (North Ethiopia)

ABSTRACT During the 2021 conflict in Tigray (north Ethiopia), crop cultivation has been hampered by warfare. Oxen have been looted and killed, farm inputs and tools destroyed by Ethiopian and Eritrean soldiers. Farmers felt vulnerable out in the open with their oxen. To produce, farmers evaluated risks involved with ploughing and organised lookouts. Overall, a large part of the land had been tilled in difficult conditions, and crops sown that require minimal management, without fertiliser, what led to low yields. True Colour Composite images, produced from Sentinel satellite imagery show that smallholder irrigation schemes were operational. There was a shift from commercial crops to cereals. The situation in western Tigray was particular, as there has been ethnic cleansing of the population and often the 2020 rainfed crops had even not been harvested. Overall, our findings show that the Tigrayan smallholder farming system is resilient, thanks to community self-organisation, combining common strategies of agrarian societies in wartime: spatio-temporal shift in agricultural activities to avoid the proximity with soldiers and shifts in crop types. Rather unique is the relying on communal aid, while the blockade of the Tigray region made that outmigration and off-farm income were no options for the farmers.

Adaptation to climate change risks among dairy farmers in Punjab, Pakistan

Adaptation to climate change is a complex process and requires sound understanding of how climatic changes are perceived and interpreted at local level by dairy farmers. This study is therefore designed to investigate the climatic risk perception, risk attitude, determinants of adaptation measures/strategies and constraints faced by the dairy farmers. The present study is among the pioneering studies considering dairy sector in developing countries in general and Pakistan in particular. A well-structured questionnaire was used to interview 450 dairy households from three agro-ecological zones of Punjab province of Pakistan. The study employed binary logit models to determine the influence of climate risk perception, risk attitude and other factors on adaptation decision of farmers. The findings of study revealed that climatic risk perception and risk tolerant nature of farmers positively influenced the use of adaptation measures such as selling of weak/diseased animals, migration, off-farm income activities and changes in cropping pattern, while risk averse behavior had negative impact on adaptation decisions. Among other determinants, education, farming experience, number of dairy animals, access to extension/veterinary officer and access to credit facilities has positive and significant influence on adaptation to climate change. Study also identified major constraints (socio-psychological, economic, technical, infrastructural/institutional and communicational) preventing dairy farmers to adopt adaptation measures against climatic risks. The study posits important policy measures.

The Effect of Social Networks on Smallholder Farmers’ Decision to Join Farmer-Base Seed Producer Cooperatives (FBSc): The Case of Hararghe, Oromia, Ethiopia

The paper presents the results of analysis conducted to empirically establish the role of social network in smallholder farmers’ decision to join seed producer cooperative, in Hararghe, Oromia, Ethiopia. We used a ‘random matching within sample’ technique to generate data on social links and resources shared like information among their links. Average treatment effects were used to limit ‘non-awareness’ or ‘selection bias’ on participation rate. An econometric strategy was employed to isolate endogenous effect from correlated and contextual social network effects and analyzed by Probit model. Rainfall data was obtained from NMA for 1986–2018 years and analyzed by coefficient of variation (CV) and standardized anomalies index (Z). The result CV and Z shows intra- and inter seasonal variability of rainfall and, the severity and frequency of drought have increase which works against a single optimum seed source. Rate of membership to FBSc was 75% for exposed sub-sample against 70% for the full sample. This shows the existence of exposure bias. The size of social network, linkage with relatives and extension agents influence farmers’ decision to join FBSc and thus, the presence of endogenous effects of social networks. Thus, participation decision is more likely to be affected by characters and structure of social network. Access to off-farm income and perception on profit influences farmer participation decision where weather-indexed seed insurance can service as an effective strategy to ensure sustained membership. Therefore, any intervention in promotion of FBSc should consider the characters’ and structure of social network and emphasis on indexed-based seed insurance and climate information services as strategy to promote seed producers cooperatives.