An Empirical Study of Livelihoods Diversification Strategies among Rural Farm Households in Agarfa District, Ethiopia
Keywords:Livelihoods Diversification, Non-farm, Off-farm, Multinomial Logit Model
Smallholder rural households seek different sources of income to secure and sustain their livelihoods. Nevertheless, diversification of livelihood is influenced by various and still empirically unidentified influences in Agarfa district. Therefore, the study examined livelihood diversification strategies and identified factors responsible for rural householdâ€™s selection of livelihood diversification strategies in the study area.The finding of multinomial regression indicate that the choice of farm and nonfarm strategy were influenced by education level, family size, remittance, agricultural inputs, irrigation and distance from road. The choice of farm and off-farm were affected by irrigation and access to non-farm training. Finally, the choice of a combination of farm, nonfarm and off-farm strategieswas influenced by the distance from market. Therefore, rural development strategy should design diverse strategies to address factors influencing smallholder farmersâ€™ engagement in non-farm and off-farm activities to improve well-being of the rural societies.
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