LIVELIHOOD DIVERSFICATION STRATEGY CHOICES AND ITS DETERMINANTS AMONG SMALLHOLDER FARM HOUSEHOLDS: THE CASE OF GERESSIE WOREDA, GAMO ZONE, SOUTHERN ETHIOPIA

Abstract

The purpose of this study was to analyze the determinants of livelihood diversification strategy choices among small farm households by rural households in Geressie woreda, Gamo zone. To achieve the study objectives, descriptive survey research design was used. The representative population was 204 household heads and the multi-stage sampling technique was employed to select the sample. The primary data were collected through the use of FGDs, KII and survey questionnaire whereas, secondary data were collected from books, journals and unpublished master thesis. The data were analyzed through descriptive statistics (sum, mean, standard deviation, percentage and frequency), inferential statistics (Chi-square, F-test and multinomial logit model). All the results were presented by using tables and charts. The finding of the study showed that farm only was the dominant type and the base strategy of most households as 66% of rural households who entirely participate in it, with rare participation in others 15% in farm plus non-farm, 12% in farm plus off-farm and 7.4% in farm plus off-farm plus non-farm combined livelihood strategies. Concerning contributions, farm only (earned from both crop and livestock), off-farm and non-farm were contributed 80.11%, 15.2% and 4.69% share of total annual household income in case of the study area respectively. The multinomial logit model result revealed that educational level, household size, frequency of extension contact and total cash saved have significantly and positively influenced household decision of choices; whereas, age, dependency ratio, market distance, credit use, cooperative membership, livestock holding and land size had significant and negative influence on the households decision of choices. Therefore, government and stakeholders should provide infrastructures such as road, transport, electricity, telecommunication and work on integration with community for provision of non-formal education, entrepreneurial training, credit service, saving culture and information processing to enhance livelihood diversification.