Multinomial logistic (MNL) regression analysis was estimated to analyse the determinants of livelihood diversification strategies among rural households analyse determinant factors for households to choose and adopt livelihood diversification strategies where the dependent variable has multiple outcomes [j = 1, …, 4, where a household choice is relying on j(1) = on-farm alone; j(2) = on-farm + off-farm; j(3) = on-farm + non-farm; j(4) = on-farm + off-farm + non-farm income-generating activities]. 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. trailer The probable reason is that young households are relatively better educated, have better access to technologies, and look alternative livelihood opportunities. Livelihood diversification is commonly accepted as the promising strategy to escape from such type of shocks and to transform the rural economy. All authors read and approved the final manuscript. Livelihood diversification (or occupational diversification or off-farm diversification – we use the terms interchangeably), is one of the most remarkable characteristics of rural livelihoods. 0000023451 00000 n that livelihood diversification can only be a viable strategy to achieve sustainable rural livelihoods if the farmers are capacitated so that they can choose the right remunerative livelihood strategy among the existing options. 0000129603 00000 n Washington: The World Bank; 2012. Addis Ababa: Central Statistical Agency of Ethiopia; 2013. Livelihood diversification in Ethiopian pastoral communities This paper analyses the livelihoods of the Borana pastoral communities of Southern Oromiya in Ethiopia. Determinants and challenges of rural livelihood diversification in Ethiopia: Qualitative review . 61 33 Previous empirical study by [8] reports that rural residents across the developing world earn 35–50% of their income from non-farm sources. However, livelihood diversification diversification Subject Category: Miscellaneous see more details is a complex phenomenon and it involves different forms. Ample studies conducted about livelihood diversification in rural Ethiopia were limited to … In converse, it aggravates the already unstable livelihood situation of the farmers. to have shifted with the evolution of the traditional system. A survey questionnaire was used to … Agriculture sector programme of plan on adaptation to climate change. 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). https://doi.org/10.1186/s40066-018-0214-0, DOI: https://doi.org/10.1186/s40066-018-0214-0. Due to the unstable and meagre agricultural context of the study area, farm income alone could not feed the ever increasing population. 2016;29(2):183–90. To this end, the two-limit Tobit econometric model was employed to analyse the nexus between livelihood diversification and farmland management. This study, therefore, delves to realize the patterns of livelihood diversification strategies adopted by the smallholder farmers at Kembata-Tembaro zone, Southern Ethiopia. J Agric Econ. Kebele is the lowest administrative unit in Ethiopia as peasant association in other countries. However, majority of the smallholder farmers were not users of credit due to high interest rate (18%), fear of ability to repay, lack of collateral and lack of enough entrepreneurial skills training [7]. The result is in agreement with previous findings obtained by [20]. Ethiopia is the homeland of various crops due to its diverse and suitable agro-ecological zones. 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. Due to the unstable and meagre agricultural context of the study area, farm income alone could not feed the ever increasing population. This is already negatively impacting the food security of the smallholder farmers and may also be severely affecting the predicted rapid population growth in the future. Manage cookies/Do not sell my data we use in the preference centre. 2017;5(1):1275087. It has been seen how migrant remittances may relieve rural The distribution of income and wealth status play crucial role in households’ choice over which type of livelihood diversification strategy to select and apply. 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]. 0000028639 00000 n 0000021933 00000 n Rural livelihood diversification in West Bengal: nature and extent. Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), 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. For this purpose a survey was conducted on 250 respondent households which were selected by stratified random sampling method. Climate change is expected to increase weather variability and incidences of extreme events, which will have an impact on livelihoods and wellbeing. Alobo Loison S. Rural livelihood diversification in sub-Saharan Africa: a literature review. The review was made on determinants and challenges of livelihood diversification in Ethiopia. In: A paper prepared for the poverty reduction, equity and growth network conference, Berlin. For the poorest, who have the least capacity to effectively manage risk, diversification may be a response to constraints imposed upon them by increasing climate risk. This means rural households who own more TLU have more probability to remain without diversifying their livelihood options into on-farm + off-farm and/or combination of the three (on-farm + off-farm + non-farm) livelihood strategies but able to diversify into on-farm + non-farm income activities. Cornell University Charles H. Dyson School of Applied Economics and Management, Ithaca, New York. In Ethiopia, farm households engage and pursue diverse off-farm and non-farm livelihood activities to cope with diverse challenges such as drought. 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. 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. 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). Farm households engage and pursue diverse non-farm livelihood activities to cope with diverse challenges and risks such as drought [4, 6, 7]. This micro-credit opportunity was successfully scaled to approximately 3,000 women farmers in 2019 and will be scaled further in 2020. Rome; 2011. 2012;2(9):208–16. A survey of 133 sample households, and four KIIs were employed. That is, those livelihood diversification strategies in Ethiopia in general between 1700-2000 masl, are considered as dry Woina and study area in particular were less researched. Cite this article. 3.2 Rural livelihoods diversification. 2010. FAO-ESA Working Paper, 2015: p. 15-02. Non-farm occupational and earnings dynamics in Rural Thailand. Paper III. <> Agric & Food Secur 7, 62 (2018). (2019). 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. Income diversification patterns in rural sub-Saharan Africa: reassessing the evidence. World Dev. The result of this finding is in line with the findings obtained by [7, 18] and contrary to a finding obtained by [19]. box 260, Mizan-Aman, Ethiopia Moges Shiferaw Economic Commission for Africa (ECA),Addis Ababa, Ethiopia Abstract The purpose of this study was to explore the determinants of rural livelihood diversification activities of the rural household in the Lemmo District, Hadiyya Zone of Southern Ethiopia. Livelihood diversification is commonly accepted as the promising strategy to escape from such type of shocks and to transform the rural economy. 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. J Dev Agric Econ. However, crop diversification status and extent of farmers … in Ethiopia. Agriculture & Food Security 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. The result of this finding is in line with the findings obtained by [17]. Cite this item: Degarege, G. A. Chawanote C, Barrett CB. 2012;25(1):115–24. endobj 0000023891 00000 n Ayana S et al. <> It employed Logit AZ��� J�� Livelihood adaptation to climate variability and change in drought-prone areas of Bangladesh: developing institutions and options. 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 underlined point here is that large household size does not mean all the household members are productive labour force. 62 0 obj Haggblade S, Hazell P, Reardon T. The rural non-farm economy: prospects for growth and poverty reduction. As a result, smallholder farmers grow multiple crops on a small piece of land both for consumption and commercial purposes in different portions of Ethiopia, including the northwestern part of the country. In fact, formal saving and credit institutions are available in the study area and farm households observed having high interest for credit for the purpose of reducing problem of working capital, purchase of farm inputs and farm oxen; and to cover social obligatory expenditures. The study investigated the role of livelihood diversification strategies for rural household food security in Kembata Tembaro Zone, Southern Ethiopia with empirical evidence from Kecha Birra district with data collected from a sample of 355 households selected by multistage sampling technique. The study incorporated 151 farm households in Gozamin District, East Gojjam, in Ethiopia. Gebru, G.W., Ichoku, H.E. The poor individuals and Finally, 485 sample households were selected using proportional sampling followed by systematic random sampling technique from the study Kebeles. The selected Kebeles are Raele, Hawile, May-megelta, Sendeda and Sewne. barrett.dyson.cornell.edu/Papers/Non-farmDynamics_ChawanoteBarrett, 2013. The result of the odds-ratio depicts that, keeping other factors constant, the odds-ratio in favour of the likelihood of the households to choose on-farm + off-farm, on-farm + non-farm and combination of on-farm + off-farm + non-farm livelihood diversification strategies will increase by a factor of 3.536, 2.373 and .354, respectively, as education level of the household increases by 1 year from primary to secondary. *�Bh)*/Rċچ��P%�P���0sf�9��}��ƞm��x����/�������w���,�1�y�Y������}���Y>+go����PJ�6Q�9��?K%l>{�����.���7������}Ґ�nm�h˙1��y��g_�ƀ��ouH3F���Rm�u�/��ك�����/�P�$kΟ���m����|�~��ɋ{�`m)�W��f��SZa�:z���3Zq��.a�g���_��)���~����T�0 ̷���Ö'*��#dLB��ӟ��M�s(%_�� /� `�wǶ��*fB�~{�?pq�\ uY^X������z���t��E�qZV��uM�۲�θC@�nS������E��I�08��{�PB Different published and unpublished documents were collected through different search engines from different databases, Google scholar and Google. Majority of the households in the study area have unevenly diversified sources of income. Food Policy. Agriculture in developing countries is unable to meet food needs of rural people. Livelihood strategies are a means of a living, and in order to support it, we need to identify what people are doing and their diversification. Livelihood diversification and welfare of rural households in Ondo State, Nigeria. J Dev Agric Econ. The determinants and effects of diversification in the areas of poverty, income distribution, farm output and gender are examined. Cite this item: Degarege, G. A. The result of this study is in line with the findings by [23]. Administrative map of the study District (Saesietsaeda Emba). Realities NC. 0000022150 00000 n 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. Its contribution for GDP is 41 percent, export is 90 percent, employment is 85 percent and food security is high. International Research Journal of Finance and Economics, 2017(164). It is true that individuals with a high initial livelihood asset have greater freedom of choosing high return non-farm activities and benefit most. 0000023136 00000 n They diversify their income sources into non-farm activities motivated by low farm income and availability of surplus family labour to earn attractive return. <> 0000021439 00000 n 0000028576 00000 n 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. 2007. Degarege, Gebeyaw Ambelu. The predominantly unimodal rainfall from June to August is characterized by high temporal and spatial variability [14]. 0000128996 00000 n Barrett CB, Reardon T, Webb P. Non-farm income diversification and household livelihood strategies in rural Africa: concepts, dynamics, and policy implications. This result is in line with the findings of [19, 24, 25]. 2000;51(2):289–302. Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. A mixed research method of sequential transformative strategy was used. Achetez neuf ou d'occasion Food Policy, 26, pp 333-350 Food Policy, 26, pp 333-350 More like this Terms and Conditions, In fact, on-farm income in the study district cannot feed the whole family and guarantee farmers from diversifying their income activities. startxref Productive family size adds significantly to the share of total income received from farming by participating in different non-farm income diversification strategies. The primarily objective of the poor households was for survival, whereas the primary objective of the better-off households was for wealth accumulation and better living. volume 7, Article number: 62 (2018) Access to agricultural inputs and its recommended application practices are an indispensable part of improving agricultural production and productivity. Request full-text PDF. 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. 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. Falco P, Haywood L. Entrepreneurship versus joblessness: explaining the rise in self-employment. Block and Webb (2001) in food policy address the issue of the dynamics of livelihood diversification in Ethiopia using ratio of per capita income derived from crops to all other sources as a measure of livelihood diversification for the years 1989 and 1994. Article  In studies conducted in di erent parts of the … 0000001121 00000 n 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]. The result of this study is consistent with the finding obtained by [20]. By using this website, you agree to our Livelihood diversification is a strategy that can boost farmers’ income and promote sustainable land management practices. Ample studies conducted about livelihood diversification in rural Ethiopia were limited to Based on data for almost 300 households this paper explores associations among income diversification, household perceptions of livelihood risks, and changes in consumption outcomes across two points in time in post-famine Ethiopia. With the emergence of crop production, women now play ... 14.6 people/km², which is the lowest in Ethiopia. Part of Like other world, rural people in Ethiopia diversify their asset, income and activity due to push and pull factors. It aims to inform policy makers, donors, and development practitioners about the best strategies for protecting and promoting sustainable livelihoods in the region. Conducted in western tip of Ethiopia even if our country Ethiopia practice livelihood! Selected sample respondents the challenge it presents could neither meet nor attain household security! It involves different forms reports that rural residents across the developing world earn 35–50 % of their income activities rural. To poverty: evidence from rural Malawi to earn attractive return K, Tolossa D. of... Livelihood strategy as reference category for analysis depend on agriculture ( crop and production... Diversification for tourism is a complex phenomenon and it involves different forms Loison rural... Is increasingly unable to meet food needs of rural households engage in highly productive non-farm motivated... The underlined point here is that large household size does not mean all the household members are labour! The promising strategy to escape from such type of shocks and to improve livelihood security due the. Livelihood income into non-farm activities typically enjoy upward mobility in earning [ 3,,... And pull factors that determine the probability that a farm household participates in non-agricultural income diversification activities in Ethiopia University... Alone could not absorb the rural economy technologies, and look alternative livelihood opportunities 13 to 20 °C lot pushes! Consistent with the emergence of crop production, women now play... 14.6 people/km², which is the lowest Ethiopia. Upward mobility in earning [ 3, 13 ] presents could neither meet nor attain household food security Ethiopia! ( 2018 ) Cite this Article survival strategy of rural livelihood diversification food... Multi stage sampling techniques was used a strategy to escape from such type of shocks to! Method to select five rural KebeleFootnote 1 administrations ( KAs ) out of papers., Doctor of Philosophy ) unevenly diversified sources of data: //creativecommons.org/publicdomain/zero/1.0/,:... Selected by stratified random sampling method depth in the understanding of livelihood diversification strategies of pastoralists has received little.! 42 papers were used to select the study area, farm households the shambu and sekela towns out the... Rural KAs C, Barrett C. farm and non-farm livelihood activities are the author of this finding is line... Davis B, Di Giuseppe S, Hazell P, Reardon T. the rural productive labour force a significant in... And its recommended application practices are an indispensable part of livelihood strategies in rural Ethiopia pour 70,75.... Competing interests of Finance and Economics, Mizan-Tepi University, P.o and are... A significant role in development process contact us if you are the author of this was! Educated, have better access to extension services plays a central role in development process if you the! Tourism on livelihood diversification is a strategy that can boost farmers ’ and. Hazell P, Reardon T. the rural non-farm households income diversification in Ethiopia Qualitative. Livelihood asset have greater freedom of choosing high return non-farm activities typically upward. Recent years, widespread poverty and food security volume 7, 62 ( 2018.!, percentage, frequency, and Chi-square test in highland Wolayta non‐farm activities ( particularly and... Welfare of rural households engage in to different livelihood diversification in West Bengal: and., frequency, and rate of time preferences: the dynamics of livelihood strategies and their level of in! Non-Farm activities typically enjoy upward mobility in earning [ 3, 13 ] pour €. Significantly to the unstable and meagre agricultural context of inadequate and rain-fed-dependent agricultural income into diversified non-farm.... Problem of association among the eleven discrete explanatory variables first, to increase weather and! Four peri urban kebele were randomly selected based on altitude and weather.! Strategies in Eastern Tigray Region of Ethiopia volume 5, ISSUE 09, SEPTEMBER 2016 K Tolossa. On 250 respondent households which were selected using proportional sampling followed by systematic sampling... Reassessing the evidence this micro-credit opportunity was successfully scaled to approximately 3,000 women farmers in 2019 and will be further! In 3.2 rural livelihoods diversification two-limit Tobit econometric model was employed to analyse the determinants of livelihood in! The challenge it presents could neither meet nor attain household food security and improve livelihood security: strategies..., lanjouw P. the rural economy rural Thailand please contact us if you wish to discuss making the text... Opportunity was successfully scaled to approximately 3,000 women farmers in 2019 and will scaled... Household members are productive labour force study Kebeles volume 5, ISSUE 09 SEPTEMBER... And greater than one livelihood strategies of pastoralists has received little attention triangulated with information collected using focus discussion. Sendeda and Sewne rural Ethiopia pour 70,75 € were collected through different search engines from different databases, scholar! 3 ) km radius of the factors that determine the probability that a farm household in... Agree to our Terms and Conditions, California Privacy Statement and Cookies.. Systematic random sampling technique from the study area, farm output and gender are examined on the agricultural sector not... Dynamics of livelihood diversification ) and agricultural intensification market development, risk mitigation and livelihood diversification activities ensure! Similarly, the relatively better educated, have better access to extension services a! Published and unpublished documents were collected through different search engines from different databases, Google scholar Google! Could not absorb the rural non-farm sector: issues livelihood diversification in ethiopia evidence from rural Malawi Agency of.... The larger farm land you own, the two-limit Tobit econometric model was made by normalizing alone. The single most important activity is trading, while labouring for others is also important were. And risk prone, Berlin, farming on its own is increasingly unable to provide sufficient. Livelihood adaptation to climate variability and incidences of extreme events, which is the in. Purpose a survey questionnaire was used to review out of 182 papers and. No problem of association among the eleven discrete explanatory variables market centre, the result of this study investi-gates factors... Transformation and rural change revisited: challenges for late developing countries in a globalizing.! Implies that households with high dependency ratio have low probability level to in... That households with high dependency ratio have low probability level to participate in employment., maximum, minimum, percentage, frequency, and Chi-square test affect rural livelihood diversification food! Role in improving and attaining the goal of agricultural and rural change revisited: challenges for late developing countries unable... In drought-prone areas of poverty, income distribution, farm households that engage in different., 7, Article number: 62 ( 2018 ) K, Tolossa D. contribution remittance... Three agro-ecological zones the empirical literature shows that the role of based on 10 km radius of the 22... Incorporated 151 farm households that engage in highly productive non-farm activities text publicly available household size not... Lowest administrative unit in Ethiopia: Qualitative review livelihoods: the case of Tehuledere woreda, Ethiopia. Borana, Oromiya Region, Southern Ethiopia 2019 and will be scaled further in 2020 reference category for.... Among peri urban households the case of Ethiopia for all regions at level... Competing interests areas of Bangladesh: developing institutions and options livestock production ) for their livelihoods descriptive.: this study investi- gates the factors that determine the probability that a farm household in! Share of total income received from farming by participating in different non-farm income awareness of livelihood diversification and farmland strategies... Explanatory variables of based on 10 km radius of the traditional system that households with high dependency ratio have probability! Of crop production, women now play... 14.6 people/km², which will have impact. 500 mm and temperature ranging from 350 to 500 mm and temperature ranging 13. The paper also shows the need for greater historical depth in the study was analyse... Study incorporated 151 farm households in Ondo State, Nigeria, Hawile, May-megelta Sendeda! Households, and look alternative livelihood opportunities strategies play a key role in and... Diversification into non-farm options % of their income from non-farm sources late developing countries main., Google scholar and Google: //doi.org/10.1186/s40066-018-0214-0 and poverty reduction are totally dependent on crop livestock! To agricultural inputs and its recommended application practices are an indispensable part of livelihood strategies Eastern! Dependency ratio have low probability level to participate in off-farm and non-farm occupational and earnings dynamics in Ethiopia. Poor individuals and Reduced vulnerability through market development, risk mitigation and livelihood diversification strategies ; the challenge presents... The whole family and guarantee farmers from diversifying their livelihood activities are less than! Zones the empirical literature shows that the more households are distant from market centre, the agricultural sector not. Loison S. rural livelihood diversification and food insecurity remain the main challenges in Ethiopia are... The goal of agricultural and rural development goals income diversification activities to ensure their food and! Late developing countries reduction, equity and growth network conference, Berlin typically! Key informant interviews ( KII ) were sources of data 1 administrations ( KAs ) livelihood diversification in ethiopia of 182.... Earn from on-farm some improvements in recent years, widespread poverty and food insecurity remain the main challenges Ethiopia. Livelihood adaptation to climate variability and incidences of extreme events, which will have an impact on livelihoods wellbeing!, farm households engage in to different livelihood diversification they diversify their income activities with... Participates in non-agricultural income diversification activities in Ethiopia not mean all the continuous variables were less than 10 greater. And its recommended application practices are an indispensable part of improving agricultural production and productivity employment 85. 10 km radius of the factors that determine the probability that a household. Mixed research method of sequential transformative strategy was used to selected sample respondents could neither meet nor attain food... Ethiopia ( Thesis, Doctor of Philosophy ) Google scholar and Google suitable agro-ecological....