The role of livelihood diversification strategies in the total household income in Takusa Woreda, Amhara Region, Ethiopia

Abstract

Agricultural income alone is insufficient to meet basic amenities for smallholder farm households, and livelihood diversification strategies are a must in vulnerable and challenging environments to improve household income. Therefore, this study is intended to assess the income share of livelihood diversification activities and their role in the total household income in Takusa Woreda, Amhara Region, Ethiopia. To address the study objectives, data were collected from both primary and secondary sources. A multi-stage, purposeful and systematic random sampling technique was employed to select respondents. Primary data were analyzed using descriptive statistics, F-test and t-test. Also, secondary data were analyzed qualitatively. The study revealed that on-farm livelihood activities had a 79% income share of the total household’s income. Off-farm and non-farm livelihood diversification strategies had a 7% and 14% income share of the household’s income, respectively. Livelihood diversification was essential for increasing a household’s total income, and out of a different combination of diversification strategies, the on-farm plus non-farm strategy had a higher mean income. Hence, households’ engagement in diversified livelihoods generates better income than households limited to on-farm only, off-farm only and non-farm-only strategies. The t-test results showed that the income share of livelihood diversification differed statistically across locations. The F-test revealed that household income was statistically significant with the nature of livelihood diversification strategies. Household engagement in livelihood diversification strategies was important for responding to challenges arising from the income shortage of farm households. Therefore, livelihood diversification is to be a central policy issue for improving household income.