Livelihood Diversification Strategies of Smallholder Farmers in Ethiopia

Master's Thesis from the year 2011 in the subject Agrarian Studies, grade: 1,3, Haramaya University (College of Agriculture and Environmental Science), course: Rural Development and Agricultural Extension, language: English, abstract: This paper assesses the status of livelihood activities of smallholder farmers in Ethiopia and the need for diversification. This study is motivated by the belief that the constraints of the farm sector cannot be overcome by simply concentrating on the farm sector alone; inter-sectoral issues and on farm and non-farm linkages need to be addressed. Primary data was collected from 140 households, out of which 75 were engaged in both on farm and non-farm activities and the rest (65 sample households) were engaged only in farm activities. Thus, to understand the stated objectives, primary data was collected using a validated semi-interview schedule, group discussions, a key informant interview, general observation, and scientific documents for secondary data. The collected data was then analyzed using descriptive and inferential statistical tools. The economy of Ethiopia depends heavily on rain-fed agriculture. The sector is anticipated to hold up the whole economy and change its structure. However, the country is highly affected by drought and millions of people are left without sustenance every year. Therefore, diversified on farm and non-farm activities provide an important potential source of income for many.