Revista Internacional de Economía y Ciencias de la Gestión

The Role of Off-Farm Incomes on Household Food Security: The Case of Damote Woyde District, Wolaita Zone, Ethiopia

Abstract

Meseret Meskele Guja, Berhanu Moliso Ayemalo

This paper analyzes the role of off-farm income on 149 households’ food security in rural Ethiopia using an original panel data set.
Simultaneously, the study states out identifying types of off-farm activities and respective income levels, measuring households’
food security status and the potential determinants of the households’ participation on off-farm activities. In order to achieve the stated aims,
respondent rural households were selected randomly following a two stage sampling procedures. Primary and secondary data were also used.
The data regarding determinants of participation on off-farm activities were analyzed using binary logistic regression model. Inferential
statistics such as t-test and chi-square (X2) tests were also used to describe characteristics of participants and food security status.
This study followed a consumption based calorie deprivation indicator to measure the household food security status using seven days
recalling technique. Therefore, the survey result shows that major sources of off-farm incomes identified in the study area were daily labor,
petty trade, sale of charcoal, sale of firewood, donkey renting, and micro enterprises. About 109 (73.15%) and 40 (26.857%) of sample
respondents were participants and non-participants respectively. All the 60 households participated on off-farm activities were food secured
and no household was found food secure from non-participant groups. Among 89 food insecure households, about 49 and 40 were food
secured and insecure respectively. Out of 10 independent variables used in binary logistic regression model, age and household size in AE
were found significant at less than 1% probability level, credit utilization and frequency of extension contacts were found significant at less than
10% probability level and ownership of livestock resources by the household was significant at less than 5% probability level. The model
estimate correctly predicted 73.8% of the sample cases, 82% participants and 80% non-participants. Finally, there is a need to strengthen
the link between farm and off-farm activities, diversification of off-farm employment opportunities for rural households, give attention for old
aged and female headed households in rural development interventions, limit population size through integrated health and education
services, introduce appropriate livestock packages, promote and facilitate effective credit services, strengthening the role of DAs and
entrepreneurial skill development to enhance participation of the households in off-farm activities and protect natural forests and vegetation
cover of the District.