CHOICE OF LIVELIHOOD STRATEGIES by SMALLHOLDER FARMERS in BOSET WOREDA, EAST SHOA ZONE, OROMIA REGION, ETHIOPIA

Abstract

Majority of smallholder farmers in Ethiopia pursue a dominant livelihood strategy mostly complemented by a second less dominant livelihood strategy. Choice of livelihood strategies is mostly constrained by shrinking natural capitals and adverse changes in climatic conditions that affects the outcomes from the adopted livelihood choices. In the face of such changes, comprehending the driving factors for the choice of current livelihood strategy is crucial to having objective information on rural livelihoods to make an informed approach in planning and executing rural livelihood policies. This study aims to empirically measure factors affecting choice of livelihoods strategies in Boset Woreda. Household level cross sectional data in production year 206/17 were collected from 200 randomly selected respondents. Data was collected using structured questionnaire, key informant interview and focus group discussion. Descriptive statistics and econometric model (Multivariate probit model) were used to analyze the factors that determine household’s choice of livelihood strategy. The study found out that crop farming and Livestock rearing livelihood strategies are the most widely pursued livelihood strategies in the study area. The multivariate probit model found out that out of the 12 explanatory variables used for the study: Age of household head, farmland size and credit access have positively influenced households choice of crop farming livelihood strategy, while land size, age of household head and input use has negatively xv influenced households decision to pursue non-agriculture livelihood strategies. The study also found out that the share of non-agriculture livelihood strategy among surveyed households comprises 39% of the livelihood choice by the respondents reporting to follow a wide range of off farm and non-farm income sources.