The objective of the study was to analyse the determinants of livelihood diversification strategies among rural households in Eastern Tigray Region of Ethiopia. Employing the data produced from household surveys, we developed a composite household well-being index incorporating four components and 15 indicators, and measured the effect of diversification on it. The rural non-farm economy (RNFE) may be defined as all those activities associated with waged work or self-employment in income-generating activities (including in-kind income) that are not agricultural but located in rural Project formulation for financial assistance from other financial institutions for state level projects. On the other hand, 11.5, 59.8 and 11.8% of the sample households were able to diversify into on-farm + off-farm, on-farm + non-farm, and on-farm + off-farm + non-farm income-generating livelihood strategies, respectively (Table 2). & Phil-Eze, P.O. IMG-20190425-WA0032. Addis Ababa: Central Statistical Agency of Ethiopia; 2013. Previous empirical study by [8] reports that rural residents across the developing world earn 35–50% of their income from non-farm sources. More Info & Bookings. Barrett CB, Reardon T, Webb P. Non-farm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. As expected, access to irrigation (IRRIGATION) has found positively and significantly affected households’ livelihood diversification strategy into on-farm + off-farm at 1% level of significance. Falco P, Haywood L. Entrepreneurship versus joblessness: explaining the rise in self-employment. Analysis showed that well-being was not associated with diversification per se but rather on a households' involvement in ‘high return sectors’ such as trade or salaried job. Copyright © 2016 The Authors. Household-based activities in the non-farm sector are particularly important for the rural poor, including women. The study was conducted during the year 2016/17 in Saesietsaeda Emba district, Eastern Zone of Tigray, Ethiopia which is found at about 883 km north of Addis Ababa. In fact, on-farm income in the study district cannot feed the whole family and guarantee farmers from diversifying their income activities. Farm households that engage in highly productive non-farm activities typically enjoy upward mobility in earning [3, 13]. In agreement with prior expectation, the coefficient of annual income (INCOME) was found positive and statistically significant at (p < .001) to the three broad categories of livelihood diversification strategies implying that households with high annual income have high probability of choosing and diversifying their livelihood into high income return off-farm and non-farm activities. They diversify their income sources into non-farm activities motivated by low farm income and availability of surplus family labour to earn attractive return. 2001;26(1):1–23. Eshetu F, Mekonnen E. Determinants of off farm income diversification and its effect on rural household poverty in Gamo Gofa Zone, Southern Ethiopia. Access to agricultural inputs and its recommended application practices are an indispensable part of improving agricultural production and productivity. Abstract: Agricultural activities are main source of livelihood however, households engage in off-farm activities to generate more income to cushion the effects of poverty.,,, Provide Forward and Backward linkage support for Livelihood Project. Vikash. Especially, the better of rural households that do not only diversify for survival but also for enhancing better financial returns and then accumulation of wealth for a better life. 2017;5(1):1275087. In this regard, it is obvious that the contribution of non-farm income is immense but varies from place to place and people to people due to different contextual factors. Mohammed K, Tolossa D. Contribution of remittance to the improvement of rural households livelihoods: the case of Tehuledere Woreda, Northeastern Ethiopia. This paper investigated off- farm activities and its contribution to households income in Hawul, … In the context of Odisha there are Terms of Reference for Hiring Consultant/Resource Agency Livelihood Potential Assessment around off-farm and on-farm activities for Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (, which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. Hence, increasing rural households remittance income plays a vital role for enhancing and smoothing household consumption problem, strengthen social network/social capital, increase saving and investment, help households gain access to diversified opportunities like trading, and then able to improve their livelihood. 20190710_103853. Without adopting context based livelihood diversification strategies; the challenge it presents could neither meet nor attain household food security and improve livelihood security. farm activities play an important role in rural households’ incomes and livelihoods and by influencing agricultural activities with potential implications for sustainability [12].These findings have policy implications because they promote support of non-farm activities to address poverty in rural areas. Households who diversified their livelihood activities are the ones who able to build better asset and less vulnerable than the undiversified ones. Administrative map of the study District (Saesietsaeda Emba). Ethiopia’s agricultural productivity is considered low despite the presence of various agricultural policies. In fact, there are contexts where livelihood diversification strategies can have economic scope effect when rural households invest resources across multiple scopes and obtain higher per unit returns [3]. Agriculture & Food Security 2025. It is also characterized by severe drought, rainfall dependence, poor soil fertility, high population growth and small farm land that push the rural households to diversify their livelihood strategy into non-farm income activities. J Dev Econ. Farm households engage and pursue diverse non-farm livelihood activities to cope with diverse challenges and risks such as drought [4, 6, 7]. The result of this study is consistent with the findings of [3, 21, 22]. Chambers JK. 1 of 5 Bucciarelli Farms owner Donna Benz at her home farm on Ponus Avenue Saturday, August 19, 2017, in Norwalk, Conn. Benz has been informed that the farm's signage, located at … Pauri. Cornell University, mimeo; 2013. Cogent Econ Finance. 2016;8(10):228–40. Non-farm economic activities are therefore central to the overall processes of economic growth and changes in the food systems. Structural transformation and rural change revisited: challenges for late developing countries in a globalizing world. Farm based livelihood activities . CSA E. Population projection of Ethiopia for all regions at wereda level from 2014–2017. The starter kits for hog-raising include piglets and sacks of animal feeds, while the crop and vegetable production has sacks of fertilizers, packs of seedlings, and farm … In addition, the surplus income gained from irrigation helps them in strengthening their economic capacity to participate in different non-farm livelihood diversification activities to improve their livelihood and food security level in the study area. Agric Econ Res Rev. In fact, households who diverse their livelihood activities are less vulnerable than the undiversified farm households. Sociolinguistic theory. In this way, livelihood diversification was found to have a highly skewed effect leading to inequality of income and well-being. Explore science centers, aquariums and don't forget a trip to Disneyland. The Creative Commons Public Domain Dedication waiver ( applies to the data made available in this article, unless otherwise stated. Using a cross-sectional survey, 152 smallholder farmers were sampled from 12 communities using a multistage sampling procedure. Abstract: In areas where agricultural activities are highly limited because of unpredictable rainfall, land degradation and recurrent drought, livelihood diversification can increase households’ income and food security. Activities Back to Top. In converse, it aggravates the already unstable livelihood situation of the farmers. Data were triangulated with information collected using focus group discussion and key informants interview to draw qualitative conclusion. Farmers also need to diversify due to their inability to specialize and to get sufficient income, and also the need to make self-insurance against drought. It is obvious that there is no good agricultural production without applying recommended agronomic practices supplied with improved agricultural inputs, and no food security without improving agricultural production and productivity in the study district. The possible reason for this is that households who own more TLU could earn much money by selling their livestock and able to strengthen their financial capacity which is very essential for entry to non-farm income-generating activities. The result of this study is consistent with the finding obtained by [20]. Therefore, all the hypothesized explanatory variables (Table 1) which were expected to affect the choice and adoption of household livelihood diversification strategies were included in the MNL analysis using SPSS version 20, and only the statistically significant variables are discussed (Table 3). Rural livelihood diversification in West Bengal: determinants and constraints. volume 7, Article number: 62 (2018) Chawanote C, Barrett CB. Davis B, Di Giuseppe S, Zezza A. Response to climate risks among smallholder farmers in Malawi: a multivariate probit assessment of the role of information, household demographics, and farm characteristics. Livelihood diversification is the process by which households combine diverse portfolios of activities and assets in order to improve their welfare (Ellis 2000; Scoones 1998).Little et al. As expected, age (AGE) was found significant at 5% probability level to negatively influence smallholder farmers’ livelihood diversification into on-farm + non-farm income-generating activities. Cookies policy. 2007. J Dev Stud. If other factors remain constant, the odds-ratio in favour of the smallholder farmers to choose on-farm + non-farm or combination of the three (on-farm + off-farm + non-farm) livelihood diversification strategies increases by a factor of 7.506 and 5.898, respectively, as membership to cooperatives increases by one. Many rural youth are faced with difficulty of maintaining livelihoods and consequently, poverty remains pervasive among them. Education level of the household head (EDUCATION) was found to be one of the most important determinants of livelihood diversification as prior expectation. If other factors are held constant, the odds-ratio in favour of the smallholder farmers to choose on-farm + non-farm livelihood diversification strategies increases by a factor of 4.431 as remittance income increases by one ETB. Asfaw S et al. Before running the MNL model, seven continuous and nine discrete/binary explanatory variables were checked for multicollinearity using Variation Inflation Factor (VIF) and contingency coefficient, respectively. 2010. Agriculture sector programme of plan on adaptation to climate change. Productive family size adds significantly to the share of total income received from farming by participating in different non-farm income diversification strategies. The distribution of income and wealth status play crucial role in households’ choice over which type of livelihood diversification strategy to select and apply. Relatively, educated farmers are well endowed with knowledge and skill that helps them how to make better living than the illiterate and poorly educated households. Although farming has traditionally been the core livelihood strategy for most households, diversifying into non-farm activities remains acommon livelihood strategy employed to sustain household basic needs, particularly for women, who because of their gender often face challenges in accessing land for farming purposes. farm livelihood activities. This is due to the fact that some of the household members are physically disabled and mentally disordered due to the past war between the current government of Ethiopia and the military regime of Derg; and also due to the Ethio-Eritrean war from 1998 to 2002 and other diseases in the study area. As projected, the sign of the estimated coefficients was found to have positive relationship between membership to cooperatives (COOPMEM and on-farm + non-farm and combination of on-farm + off-farm + non-farm livelihood strategies and statistically significant at p < 0.01 and at p < 0.05 probability level, respectively. ScienceDirect ® is a registered trademark of Elsevier B.V. ScienceDirect ® is a registered trademark of Elsevier B.V. Here are the top things to do with kids in L.A. that the whole family will enjoy. Part of Rural non-farm activities may absorb surplus labour in rural area, help farm-based households spread risk, offer income remunerative activities to supplement or replace agriculture income, offer … Similarly, the result of the contingency coefficient test revealed that there is no problem of association among the eleven discrete explanatory variables. J Dev Agric Econ. Sch J Agric Sci. Correspondence to World Dev. Keeping other factors constant, the odds-ratio in favour of the smallholder farmers to choose combination of the three (on-farm + off-farm + non-farm) livelihood diversification strategies increases by a factor of 5.519 as access to credit increases by one. Ayana S et al. Adepoju AO, Obayelu OA. Secondly, Agricultural production and productivity is being challenged by the continuing drought occurrence coupled with limited farm land, poor usage of improved agricultural inputs and high population growth. Chawanote C, Barrett C. Farm and non-farm occupational and earnings dynamics in rural Thailand. © 2021 BioMed Central Ltd unless otherwise stated. Access to high return sectors was determined by caste/ethnicity and associated socio-economic characteristics of households. The possible explanation for this could be that extension workers are not only providing agricultural extension services to farmers but also entrepreneurial skills, the entry point for participating in non-farm income business activities. The probable reason is that young households are relatively better educated, have better access to technologies, and look alternative livelihood opportunities. 2017;16:208–21. In Ethiopia, empirical studies found that non-farm income accounts for as much as 40–45% of the average households income [9, 10]. Non-Farm based Livelihood . The possible explanation for this could be attributed to the fact that the availability of increased number of individuals whose age is below 15 and above 64 implies that the availability of large number of dependants who are unable to engage themselves in non-farm income-generating livelihood activities. Interpretation of the odds-ratio for the distance from nearest market centre indicated that keeping other factors constant, the odds-ratio in favour of the smallholder farmers to choose on-farm + off-farm and/or combination of the three (on-farm + off-farm + non-farm) livelihood diversification strategies decreases by factor of 3.042 and .046 as the distance from the household’s home to market centre increases by one km. Cite this article. The estimation of the MNL model was made by normalizing on-farm alone livelihood strategy as reference category for analysis. By continuing you agree to the use of cookies. Diversification, climate risk and vulnerability to poverty: evidence from rural Malawi. 2000;51(2):289–302. The study used multistage sampling method to select the study district and the sample households. All Farm based livelihood activities. 2016;118:245–65. 2013;5(12):482–9. In this paper, we have assessed the role of livelihood diversification in household well-being in Humla, a remote mountain district in west Nepal. zucchini—which we all need to eat for great nutrition and vibrant health. Interpretation of the odds-ratio implies that if other factors are held constant, the odds-ratio in favour of the probability of the household to choose on-farm + non-farm income-generating livelihood strategies of the household decreases by a factor of 5.750 as the age of the household increases by 1 year. Introduction. Similarly, livestock holding has negatively and statistically affected household’s participation in on-farm + off-farm + non-farm livelihood diversification strategy at 10% level of significance. 2016;29(2):183–90. Realities NC. Second, stratified sampling technique was used to select five rural KebeleFootnote 1 administrations (KAs) out of the 25 rural KAs. Kebele is the lowest administrative unit in Ethiopia as peasant association in other countries. 600 million Indians depended on agriculture but they are not farmers. equipment seeds, chemical and other farm inputs, consumer’s goods and other durables thereby sustaining urban industries, potential sources of manpower, nurture and sustain the major institutions of religion and family etc Livelihood activities according to Ellis (1999) are the activities, assets and the access that jointly determine the In Ethiopia, farm households engage and pursue diverse off-farm and non-farm livelihood activities to cope with diverse challenges such as drought. Copyright © 2021 Elsevier B.V. or its licensors or contributors. Published by Elsevier Ltd. 2006. Farming as a livelihood activity in the Bosomtwe District is threatened by climate change. polyhouse Lohaghat, Champawat. 2015;51(9):1125–38. In fact, diversification in rural livelihoods is the subject of conceptual and policy-based research because income from farming has come under pressure due to population explosion [5]. 2012;2(9):208–16. Khatun D, Roy BC. Washington: The World Bank; 2012. Access to extension services plays a central role in improving and attaining the goal of agricultural and rural development goals. Gebru GW, Asayehegn K, Kaske D. Challenges of Development Agents (DAs) Performance in Technology Dissemination: a Case from Southern, Nation, Nationalities and Peoples Regional State (SNNPRS), Ethiopia. Education level has a positive and significant (p < 0.1, p < 0.01, and p < .01) relationship with households livelihood diversification into on-farm + off-farm, on-farm + non-farm and combination of on-farm + off-farm + non-farm livelihood diversification strategies, respectively. Position: Block Mission Manager - Farm Livelihood (20 Posts) Duties and Responsibilities: The key results have an impact on the success of country programme within specific areas of cooperation. diversification of the rural dwellers has become. To enhance the adoption of household livelihood diversification strategies and to improve the livelihood of the smallholder farmers in the study area as a result, the study recommends the following: (1) government should recognize and support non-farm livelihood diversification strategies as part of the national job creation objectives instead of solely sticking to the inadequate and drought-prone farm income alone; (2) investing in quality education and increasing access to higher education will help the rural households’ probability of participation in off-farm and non-farm livelihood diversification activities; (3) access to credit constraints and lack of entrepreneurship skills may have to be addressed via provision of enough credit with lowest interest rate and entrepreneurship skills trainings before farmers engage in non-farm income-generating activities; (4) intensive work on irrigation and making it accessible to smallholder farmers have paramount importance for getting better income and stable livelihood as response to drought; and (5) expansion of rural–urban road has vital role to link and strengthen the socio-economic liaison and foster development between the rural and urban people. All authors read and approved the final manuscript. Terms and Conditions, However, contrary to prior expectation, household size (FAMLYSIZE) negatively and significantly (p < 0.1 and p < 0.01) influenced the participation of households in on-farm + off-farm and on-farm + non-farm income diversified livelihood strategies. Due to the unstable and meagre agricultural context of the study area, farm income alone could not feed the ever increasing population. Springer Nature. The result of this study is consistent with the findings of [4, 7, 13, 19, 27, 28]. Majority (83.1%) of the farmers were able to diversify their livelihoods into either off-farm or non-farm or combined income activities, whereas the remaining 16.91% of the households were unable to diversify; often lacking the means to engage in any form of income-generating activity apart from agricultural activities. Farm for Livelihood Association is a co-operative that started with the aim of of providing business and agricultural skills and a sustainable employment for the rural communities in Ghana, helping support disabled people in agriculture and also providing school funds for children who would otherwise not be able to attend school or continue their education. Agric Econ Res Rev. Recently on Take Two. Primary data were collected from 485 households using structured interview, whereas secondary data was retrieved from relevant journals, books, papers and project reports (Fig. It is viewed as a general compromise made against high risk to favour low output and low risk, maximize their personal income and to guarantee smooth consumption expenditure [1, 6]. Selvaraju R et al. The result of this study is in line with the findings by [23]. statement and Majority (83.1%) of the sample households were able to diversify into on-farm + off-farm or on-farm + non-farm or combination of on-farm + off-farm + non-farm livelihood strategies, whereas 16.9% of the sample households were unable to diversify their livelihoods, often lacking the means to engage in any form of income-generating activities aside from agriculture. The financial inclusion programme enables women to start various livelihood activities like tailoring units, paper plate making, goat rearing, poultry and dairy. They are totally dependent on crop and livestock husbandry. Therefore, the objectives of this study were to: (1) identify choices of household livelihood diversification options and (2) analyse the determinants of livelihood diversification strategies among rural households. 2001;26(4):315–31. Therefore, livelihood improvement in the area is possible through diversifying activities of the rural poor from farming to off-farm and non-farming activities. It is true that individuals with a high initial livelihood asset have greater freedom of choosing high return non-farm activities and benefit most. J Dev Agric Econ. Livelihood diversification is a strategy that can boost farmers’ income and promote sustainable land management practices. IMG-20190830-WA0054. Results (Table 2) depicted that majority (83.1%) of the farmers were able to diversify their livelihoods into either of the three livelihood diversification strategies or combined income activities, whereas the remaining 16.9% of the sample households were unable to diversify their livelihoods, often lacking the means to engage in any form of income-generating activity aside agriculture. New opportunities for tomorrow’s generation. Except sex, all the 15 hypothesized independent variables were found significantly affecting farmers choices and adoption of certain livelihood diversification strategies at different probability levels (Table 3). Clim Risk Manag. The result of this study is consistent with the findings of [26]. Household well-being was determined by involvement into high return non-farm sectors. Dried and cracked earth is visible on an unplanted field at a farm … Smallholder farmers’ food security and livelihood improvement can only be realized if the government give due attention and put the right policy measures in place that support non-farm livelihood diversification as part of national job creation for saving life of many people and better livelihood. Livelihood diversification is a process by which rural households construct a diverse portfolio of activities and social support capabilities in their struggle for survival and improvement in their standards of living [1] and the means of gaining a living [2]. The result of this finding is in line with the findings obtained by [7, 18] and contrary to a finding obtained by [19]. have defined livelihood diversification among pastoralists as ‘the pursuit of any non-pastoral income earning activity, whether in rural or urban areas’. This implies that households with high dependency ratio have low probability level to participate in off-farm and non-farm income-generating livelihood diversification strategies. Non-farm occupational and earnings dynamics in Rural Thailand. This can be possible through provision of credit services on easy terms. IMG-20190830-WA0064. IMG20190508073401. Rural livelihood in Africa is assertively connected to agriculture and natural resource use. Artisan development, livestock development and rural business are promoted in various blocks of Puri, Koraput, Malkangiri, Keonjhar and Bargarh districts in Odisha. Agriculture still represents the main economic livelihood activity for the majority of rural households in sub-Saharan Africa where it has been noticed that livelihood diversity is predictable or a custom. As a result of this and other factors, the agricultural sector could not absorb the rural productive labour force. California Privacy Statement, Khatun D, Roy B. Google Scholar. As expected, wealth (WEALTH) has positively and statistically affected households’ likelihood into on-farm + off-farm + non-farm livelihood diversification strategies at 10% level of significance. Keeping other factors constant, the odds-ratio in favour of the probability of the households to choose on-farm + off-farm + non-farm livelihood diversification strategies increase by a factor of .738 as wealth status of the household increases by one unit.

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