Improving Ethiopian Smallholders’ Income and Food Security: An Assessment of Alternative Policy Options

Smallholder farmers dominate food production, but also represent the largest share of people in developing countries experiencing food insecurity. In Ethiopia, agricultural growth now forms the backbone of the country’s long-term plans for economic growth. This study aims to analyze long-term changes to the agricultural sector and its consequences for the evolution of smallholder farmers under various policy scenarios. A farming typology based on the agro-ecological zone, the dominant activities, and the degree of market integration is established for this purpose. The agro-ecological zone is divided into the rainfall-sufficient and drought prone highland areas and the pastoralist lowlands. Dominant activities are either pure livestock-keeping or a combination of crops and livestock. Market integration is based on the share of agricultural output sold to the market. The resulting typology is extrapolated to all regions of Ethiopia. The spatially differentiated typology is integrated in an Ethiopia-version of Global Biosphere Management Model (GLOBIOM), a globally-consistent partial equilibrium model representing spatial land-use patterns and accounting for biophysical resource constraints. 19 crops (the standard GLOBIOM crops, teff, coffee and sesame), 4 animal types (cattle, sheep, goats and poultry) and 2 livestock products (milk and meat) are represented in the model. Projections of population and GDP growth per region are used to set up the initial demand for each product and each time step. Policies aiming to improve food security and reduce poverty are subsequently implemented. These include infrastructure and irrigation extensions as well as the improvement of access to fertilizers. Results show that the distribution of the farming systems changes across space and time under different policy scenarios. Impacts on smallholders’ poverty and food security status differ depending on the policy, enabling a spatially explicit assessment of policy options at both the local and national level