17Jul 2017

ON-FARM INCOME DIVERSIFICATION DECISIONS AMONG RURAL FARM HOUSEHOLDS IN ENUGU STATE, NIGERIA.

  • Department of Agricultural Economics and Extension, Nnamdi Azikiwe University, Awka, Anambra State, Nigeria.
Crossref Cited-by Linking logo
  • Abstract
  • Keywords
  • References
  • Cite This Article as
  • Corresponding Author

There has been a drive on the part of consumers, producers, researchers and policy makers for a transition toward a new phase of agriculture. Diversifying income among farm households is critical to this drive. This study therefore investigated the on-farm income diversification decisions of rural farm households in Anambra State. The descriptive survey involved 235 farm households randomly selected from three agricultural zones in Enugu State, Nigeria. Three research questions were posed to guide the conduct of the study. A 23-item structured questionnaire which had a reliability co-efficient of 0.78 was used to collect data. Data were analysed using mean, frequency and exploratory factor analysis. Results showed that forty-two percent of the household heads were within the productive age range of 41-50 years. Farming was the major occupation of the respondents with majority having a household size of not more than two hectares. Average annual on-farm income was N158,000.00, N132,000.00 and N215,000.00 for crop farming, livestock farming and mixed farming respectively. The constraints in raising income from the various sources of farm income were institutional, financial and infrastructural constraints. Based on these findings, some recommendations were made that include farmers should include highly valued agricultural products in their farm activities which will boost diversification selection and therefore increase farm income. Youths should be encouraged to participate in on-farm income diversification since they are better positioned to diversify farming activities.


  1. Ogwumike, F.O. &Akinnibosun, M.K. (2013). Determinants of poverty among farming households in Nigeria. Mediterranean Journal of Social Sciences, 4(2), 365-373. Retrieved 13/04/13 from http://dx.doi.org/10.5901/mjss.2013.4vn2p365.
  2. Stakeholder Forum (2009). Sustainable agricultural development strategy and food crises response programme. A report. Feb 24-25.
  3. Enete, A.A. &Achike, A.I. (2008). Cash income diversification in rural small holder cassava producing households in Nigeria. Tropicultura,26(3), 159-163.
  4. Pal, D.P. &Biswas, M.D. (2011). Diversification of farm and non-farm sectors and structural transformation of rural economy. Retrieved from http://www.iioa.org/conferences/19th/ papers/files/586_FarmandNon-FarmSectorsIOPaper2011(DP&MDB).pdf
  5. Adebayo, C.O., Akogwu, G.O. &Yisa, E.S. (2012). Determinants of income diversification among farm households in Kaduna State: Application of tobit regression model. Publication of Nasarawa State University, Keffi, 8(2), 1-10. Retrieved 05/06/13 from http://www.patnsukjournal.net/Vol8 No2/pl.pdf.
  6. Adepoju, A.O. &Oyewole, O.O. (2014). Rural livelihood diversification and income inequality in Akinyele local government area Ibadan, Oyo State, Nigeria. Journal of Agricultural Sciences, 59(2), 175-186. Retrieved 02/06/14 from http://www.doiserbia.nb.rs/img/doi/ 1450-8109/2014/1450-81091402175A.pdf.
  7. Bowman, M.S. &Zilberman, D. (2013). Economic factors affecting diversified farming systems. Ecology and Society, 18(1), 33. Retrieved 20/04/13 from http://www.ecologyandsociety.org/vol18/iss1/art33/. http://dx.doi.org/10.5751/ES-05574-180133.
  8. Zhao, J. & Barry, P.J. (2013). Implications of different income diversification indexes: The case of rural China. Economics and Business Letters, 2(1), 13-20.
  9. Gomes, J. &Livdan, D. (2004). Optimal diversification: Reconciling theory and evidence. Journal of Finance, 59, 507-535. Retrieved 12/05/13 from http://.dx.doi.org/10.2139/ssrn.354400
  10. Ibrahim, H.I., Rahman, S.A., Envulus, E.E. &Oyewole, S.O. (2009). Income and crop diversification among farming households in a rural area of North Central Nigeria. Journal of Tropical Agriculture, Food, Environment and Extension, 8(2), 84-89.
  11. Block, S. & Webb, P. (2001). The dynamics of livelihood diversification in post-famine Ethiopia. Food Policy, 26(4), 333-350.
  12. Ibrahim, H.I. & Onuk, G.E. (2009). Analysis of rural non-farm diversification among farming households in Doma. PAT, 5(1), 49-54. Retrieved 05/05/13 from http://patnsukjournal.net/Vol5No1/p6.pdf.
  13. Abdulai, A. &CroleRees, A. (2001). Determinants of income diversification amongst rural households in Southern Mali. Food Policy, 26(4), 437-452.
  14. Barrett, C.B. & Reardon, T.J. (2000). Asset, activity and income diversification among African agriculturists: Some practical issues. Project report to the USAID BASIS CRSP, March 2000. Washington DC.
  15. Reardon, T., Berdegue, J., Barrett, C.B. &Stamoulis, K. (2006). Household income diversification into rural non-farm activities. In S. Hagblade, P. Hazell& T. Reardon (Eds.), Transforming the rural nonfarm economy. Johns Hopkins University Press. Chap 8. Retrieved 03/05/13 from http://www.dyson.cornell.edu/faculty_sites/cbb2/Papers/ IFPRIbookchapter2006Final.pdf
  16. Dixon, J., Gulliver, A. & Gibbon, D. (2001). Farming systems and poverty: Improving farmers? livelihoods in a changing world. In M. Hall (Ed.).FAO and World Bank.
  17. Minot, N., Epprecht, M., Anh, T.T.T. &Trung, L.Q. (2006). Income diversification and poverty in the northern uplands of Vietnam. Research report No. 145. Washington DC: International food policy research institute.
  18. Ijaiya, M.A., Ijaiya, G.T. Bello, R.A., Ijaiya, M.A., Ajayi, M.A. &Adeyemi, S.L. (2010). Determinants of income diversification in Ilorin Metropolis, Nigeria. International Economics & Finance Journal, 5(1-2), 145-157.
  19. Olugbire, O.O., Falusi, A.I., Adeoti, A.I., Oyekale, A.S. &Adeniran, O.A. (2011). Nonfarm income diversification and poverty reduction in Nigeria: A propensity-score matching analysis. Continental J. Agricultural Science, 5(3), 21-28.
  20. Olale, E. &Nazli, H. (2010). The influence of market barriers and farm income risk on non-farm income diversification. Paper presented at the Agricultural and Applied Economics association annual meeting, Denver, Colorado, July 25-27. Retrieved 10/05/13 from http://www.ageconsearch.umn.edu/bitstream/60915/2/non-farmpaper.pdf
  21. Babatunde, R.O. &Qaim, M. (2009). Patterns of income diversification in rural Nigeria: Determinants and impacts. Quarterly Journal of International Agriculture,48(4), 305-320.
  22. Mishra, A.K., Erickson, K. Harris, M., Hallahan, C. &Uematsu, H. (2010). Determinants of farm household income diversification in the United States: Evidence from farm-level data. Paper presented at the Agricultural and Applied Economics association annual meeting, Denver, Colorado, July 25-27. Retrieved from http://www.ageconsearch.umn.edu/handle/61632 on 02/04/13
  23. D?murger, S., Fournier, M. & Yang, W. (2010). Rural households? decisions towards income diversification: Evidence from a township in northern China. Grouped?Analyseet de Th?orieEconomique (GATE).France: Ecullycedex.
  24. Wanyama, M., Mose, L.O., Odendo, M., Okuro, J.O., Owuor, G. & Mohammed, L. (2010). Determinants of income diversification strategies amongst rural households in maize based farming systems in Kenya. African Journal of Food Science, 4(12), 754-763. Retrieved from http://www.academic journals.org/ajfs/pdf/pdf2010/dec/wanyama%20et%20al.pdf. 04/05/13.
  25. Taylor, J. & Adelman I. (2003). Agricultural household models: Genesis, evolution and extensions. Review of Economics of the Household, 1(1), 33-58.
  26. Karttunen, K. (2009). Rural income generation and diversification ? A case study in Eastern Zambia. A dissertation presented to the Department of Economics and Management, Faculty of Agriculture and Forestry, University of Helsinki. Agricultural Policy,
  27. Growth Enhancement Support Scheme (GESS) (2013). Agricultural Development Programme. Ministry of Agriculture, Enugu State.
  28. Chukwuone, N.A, Agwu, A.E. &Ozor, N. (2006). Constraints and strategies towards effective cost-sharing of Agricultural Technology Delivery in Nigeria: Perception of farmers and Agricultural Extension personnel. Journal of International Agriculture and Extension Education, 13(1), 29-40.
  29. Kessler, C.A. (2006). Decisive key-factors influencing farm households? soil and water conservation investments. Journal of Applied Geography, 26(1). 40-60.
  30. Enete, A.A. &Amusa, T.A. (2010). Determinants of women?s contribution to farming decisions in cocoa based agroforestry household in Ekiti State, Nigeria. Field Actions Science (FACTS) Report,4, 1-6.
  31. Tomich, T., Brodt, S., Ferris, H., Galt, R., Horwath, W., Kebreab, E., ... Yang, L. (2011). Agroecology: A review from a global-change perspective. Annual Review of Environment and Resources, 36, 193-222. Retrieved 12/05/13 from http://dx.doi.org/10.1146/annurev-environ-012110-121302.

[Osuafor, Ogonna O. and Nwankwo, Temple N. (2017); ON-FARM INCOME DIVERSIFICATION DECISIONS AMONG RURAL FARM HOUSEHOLDS IN ENUGU STATE, NIGERIA. Int. J. of Adv. Res. 5 (Jul). 386-392] (ISSN 2320-5407). www.journalijar.com


OSUAFOR, OGONNA OLIVE
DEPARTMENT OF AGRICULTURAL ECONOMICS AND EXTENSION, NNAMDI AZIKIWE UNIVERSITY, AWKA

DOI:


Article DOI: 10.21474/IJAR01/4730      
DOI URL: http://dx.doi.org/10.21474/IJAR01/4730