ASSESSMENT OF LIVELHOOD DIVERSIFICATION STRATEGIES AND IT‟S CONTRIBUTION ON HOUSEHOLD INCOME AMONG BORANA AGRO PASTORAL COMMUNITIES IN THE ELWAYE DISTRICT, OROMIA REGION, SOUTHERN ETHIOPIA.

Abstract

Agriculture is a basic means of livelihood for rural households in El-wayye woreda of borana zone. But it is one of the major risky business activities which affected by different known and unidentified factors. Therefore, rural households desire other options of livelihood in addition to on-farm activities. But the choices of livelihood strategy were determined by different factors, thus, this study aims to assess the determinant of choice of livelihood diversification strategy in the study area. A multi-stage sampling technique was employed to select 192 sample households. Quantitative and qualitative data were collected from primary and secondary data sources. Quantitative data were analyzed by using descriptive by mean, minimum, maximum, percentage, frequency,inferential statistics by chi-square and f-test and econometric analysis through multinomial logit model. Qualitative data were analyzed by narrative. The results of the study revealed that Chi-square result of access to training, exposure to shocks, cooperative members, access to credit, extension contact and education and F-test results of household size, age, livestock holding and market distance were significant factors on the household choice of livelihood strategies at 1%, 5% and 10% significance level. This study also identified four types of livelihood strategy that are farm only, farm+ off-farm, farm + nonfarm and farm +off-farm + nonfarm which account 57.92%, 14.06%, 19.27%, and 9.37%, out of respondent respectively. The model result reflected that exposure to shocks, use of credit, training, extension contact and cooperative member were a positive and sex,livestock, and market distance, were a negative significantly determine choice of livelihood diversification strategy at less than 10% probability level respectively. Therefore, it is suggested that, the government or any concerned stakeholder particularly the study woreda should develop comprehensive rural development policy that could empower off farm and nonfarm livelihood strategies besides on-farm activities.