Determinants of Non-Farm Employment and Farm Production of Small Holder Farmers in Huambo District of Wolaita Zone, Ethiopia

Abstract

Non-farm employment provides an important potential source of income for many landless and near-landless households in Ethiopia. The study identified household level determinants of non-farm activity participation in Humbo District of Wolaita Zone, Ethiopia using cross-sectional data obtained from 118 randomly selected farmers in 2018 production year. To achieve this objective, a binary logit model was used to analyze the determinants of participation in non-farm activities. 14 Variables were included in the model of which 5 variables were found significant. Training on entrepreneurship & input use were significant at 1 %, credit use & cultivated land were significant at 5% significance level and Age was significant at 10% significance level. Policy implication of this study was that the rural development strategy should not only emphasis in increasing agricultural production but affiliated attention should be given in promoting non-farm activities in the rural areas, accessing training on non-agricultural sector will expand the household’s choice of non-farm activities and the rural policy would do well to provide better access to credit for the rural people by motivating micro-finance institutions.

Keywords: Non-farm Employment, Logit Model, Humbo, Ethiopia.

DOI: 10.7176/DCS/10-1-03

Publication date: January 31^st 2020