Non-Farm diversification as a climate adaptation: impacts on income and resilience in Wolaita, Southern Ethiopia
摘要
Climate change presents major challenges to farming worldwide, especially in Ethiopia’s lowlands which have limited resilience. Non-farm diversification strategies can help smallholders adapt and mitigate adverse impacts. However, there is limited studies on the determinants and impact of non-farm diversification on resilience and annual farm income together in Ethiopia lowland. This study examined factors influencing the adoption of non-farm strategies and their effect on agricultural revenue and smallholder farmers’ resilience in Southern Ethiopia’s Wolaita Zone. The simple push–distress versus pull-accumulation motivations dichotomy provides a useful framework for determinants hypothesizing in this research. Analysis was done on 422 households’ data using propensity score matching (PSM). Following the qualified matching estimation procedure for 219 households’ on-support region, the average treatment effect on the treated was estimated. The survey results showed non-farm diversifiers primarily engaged in petty trading and handcrafts. Education, land size, family size, mobile phone ownership, credit utilization, and extension agent support positively influenced participation, while market distance had a negative effect. PSM analysis revealed that participation increased perceived resilience by 7.97% and farm income by 5.74%. However, this result is limited by the reliance on cross-sectional data, and single agroecology, which may restrict the generalizability of the findings. Policy recommendations include enhancing adult education, improving extension services, market access, and credit provision to promote non-farm strategies for enhanced resilience and income. Future studies should explore non-farm strategy in other regions and livelihood zones, incorporating panel data into a more detailed analysis.