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

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. Even though agriculture is the main and dominant source of livelihood for most rural farm households, livelihood diversification strategies played a key role in boosting households’ income. Households commonly practiced on-farm livelihood activities encompass both crop production and livestock husbandry practices. Off-farm activities are one of the livelihood options practiced off one’s land, and they mainly incorporate daily wage, contractual, and other natural resource-based livelihoods. Additionally, non-farm livelihood activities are the activities practiced out of agriculturally based livelihoods. livelihood diversification improved income through off-farm and non-farm activities in addition to on-farm-only activities. Livelihood diversification strategies showed different results as on-farm plus off-farm, on-farm plus non-farm and on-farm plus off-farm and non-farm livelihood diversification strategies. According to the more diversified the livelihood strategies the more income improvement. Therefore, this study could be of public interest to show the income contribution of livelihood diversification activities.