Determinants of Rural Household's Livelihood Strategies in Machakel Woreda, East Gojjam Zone, Amhara Nation Regional State, Ethiopia

Abstract

Rural farm households face an increasing need of looking for alternative income sources to supplement their small scale agricultural activities. However, livelihood strategy is determined by complex and yet empirically untested factors in Machakel Woreda. Thus, the aim of this study was to assess the determinants of livelihood strategies in the study area. The data were obtained from 144 sample household heads that were selected through a combination of multi-stage sampling like purposive and simple random sampling techniques. Data were collected through key informant interview, focus group discussion and interview schedule. Multinomial logistic regression model used to analyze determinants of livelihood strategies. Data analysis revealed that farm alone activities has a leading contribution to the total income of sample households (69.8%) followed by non-farm activities (17.2%) and off- farm activities (13 %.). Crop production was the dominant livelihood in the study area and land fragmentation, decline in productivity, occurrence of disaster risk like crop and livestock disease, hail storm, flash flood etc. and market fluctuation were major threatens of livelihood. Four livelihood strategies namely farm alone, farm plus non-farm, farm plus off-farm and farm plus non-farm plus off-farm were identified. Age, education level, sex of household head, marital status, credit access, farm land size, livestock holding size , agro-ecology, family size, frequency of extension contact, distance from market and total net income were major determinants of livelihood strategies in the study area. From those identified variables, farm land size, educational status, age, livestock holding, family size, extension contact frequency and credit access had significant correlation with farm alone livelihood strategy. Farm plus off-farm livelihood strategy influenced significantly by age, sex, education level and family size variables and farm plus non-farm livelihood strategy was significantly correlated with age, family size and total net income of rural household’s. The results of this study suggest that, both agricultural intensification and non/off-farm diversification should be strengthened to attain smallholder households’ livelihood security and rural development strategy should emphasis in supporting the payment as well as types of non-farm activities in rural areas.

Keywords: livelihood, farming, non-farm, off-farm, livelihood strategies and determinants