Impact of rural, non-farm activities on smallholder farmers’ income-poverty in Eastern zone of Tigray Region, Ethiopia

Abstract

This study aims at assessing the impact of rural, non-farm activities on smallholder farmers’ income-poverty. It answers these research questions: Is there any significant difference in the poverty indices between the participants and non-participants of non-farm activities? What is the average treatment effect of rural, non-farm activities on smallholder farmers’ income-poverty? The study design was a survey based on cross-sectional data collected from 352 randomly selected farm households. To attain its objectives, the cost of basic needs based on the daily nutritional cut-off point of 2200 kcal/adult equivalent was used to establish the local poverty line. The Foster-Greer-Thorbecke (FGT) results indicated that farmers engaged in non-farm activities have lower incidence, depth, and severity of poverty. Furthermore, the propensity score matching analysis shows non-farm activities have a significant positive impact (at 1%; t = 5.86) on smallholder farmers’ income-poverty reduction. This suggests that poverty eradication policies and interventions require a paradigm shift away from equating rural livelihoods with agriculture and should address the constraints facing farmers for participation in non-farm activities like weaving, spinning, knitting, embroidery, metalwork, masonry, and pert trade. This study should make a contribution to addressing the dearth of literature on the issue and to the eradication of rural poverty.

Keywords:

• average treatment effect on the treated
• FGT indices
• non-farm activities
• income-poverty
• and smallholder farmers

Acknowledgments

The author would like to thank the government officials of the study districts for their collaborative role for the duration of the study. Moreover, the smallholder farmers are duly acknowledged for sacrificing a lot of their time during the data collection and research validation processes.

Disclosure statement

No potential conflict of interest was reported by the author.

Notes

1 It is the fifth and last tier of the elected government in the administrative structure of the Federal Democratic Republic of Ethiopia.