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<p>The Ethiopian economy relies heavily on agriculture, but the sector faces significant challenges, including dependence on rain-fed farming, fragmented landholdings, low adoption of modern technologies, and vulnerability to climate shocks. These issues limit its capacity to meet the food and income needs of rural households. Despite the growing recognition of diversification as a resilience strategy to support income portfolios, limited empirical evidence exists on the specific patterns and determinants of income diversification in remote and under-researched areas such as Guliso District of western Ethiopia. This study seeks to identify the types of income diversification strategies pursued by smallholder farmers, examine factors influencing their choice of strategies, and assess the contribution of various livelihood activities to household income levels and asset accumulation in Guliso District of western Ethiopia. Utilizing data collected from 299 households the study applies both descriptive statistics, multinomial logit regression models and thematic analysis to identify diversification patterns and their determinants. Results reveal that the primary income diversification strategies include on-farm, off-farm, non-farm, and mixed activities. Approximately 40.13% of households depend solely on on-farm activities, while others combine on-farm income with off-farm (25.08%), non-farm (20.4%), or a mix of both off-farm and non-farm (14.38%) activities. The findings indicate that older and more educated household heads are more likely to diversify income due to their experience and ability to pursue non-farm opportunities. Larger farm sizes reduce diversification, while access to credit, training, and frequent extension visits are key enablers for engaging in higher-return activities. Overall, the results confirm that income diversification particularly into non-farm and mixed strategies not only enhances income levels but also contributes significantly to long-term welfare through improved household asset ownership. The study emphasizes the importance of education and institutional support, such as credit services and extension programs, to promote sustainable income diversification in the study area.</p>

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Patterns, determinants and contributions of rural livelihood diversification strategies among smallholder farmers in Guliso District, Western Ethiopia

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  • 发表日期：

    2025年12月9日

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  • Sura Degefu

摘要

The Ethiopian economy relies heavily on agriculture, but the sector faces significant challenges, including dependence on rain-fed farming, fragmented landholdings, low adoption of modern technologies, and vulnerability to climate shocks. These issues limit its capacity to meet the food and income needs of rural households. Despite the growing recognition of diversification as a resilience strategy to support income portfolios, limited empirical evidence exists on the specific patterns and determinants of income diversification in remote and under-researched areas such as Guliso District of western Ethiopia. This study seeks to identify the types of income diversification strategies pursued by smallholder farmers, examine factors influencing their choice of strategies, and assess the contribution of various livelihood activities to household income levels and asset accumulation in Guliso District of western Ethiopia. Utilizing data collected from 299 households the study applies both descriptive statistics, multinomial logit regression models and thematic analysis to identify diversification patterns and their determinants. Results reveal that the primary income diversification strategies include on-farm, off-farm, non-farm, and mixed activities. Approximately 40.13% of households depend solely on on-farm activities, while others combine on-farm income with off-farm (25.08%), non-farm (20.4%), or a mix of both off-farm and non-farm (14.38%) activities. The findings indicate that older and more educated household heads are more likely to diversify income due to their experience and ability to pursue non-farm opportunities. Larger farm sizes reduce diversification, while access to credit, training, and frequent extension visits are key enablers for engaging in higher-return activities. Overall, the results confirm that income diversification particularly into non-farm and mixed strategies not only enhances income levels but also contributes significantly to long-term welfare through improved household asset ownership. The study emphasizes the importance of education and institutional support, such as credit services and extension programs, to promote sustainable income diversification in the study area.