income. As the author demonstrated, to overcome these problems, people tend to diversify their livelihood to improve households’ income.
In Ethiopia, some of scholars have reported the rural non-farm livelihood activities using the dominants economic activities of the area. A study by Yisihak Ergicho and Abebe Markos (2015) in Hadiya zone revealed that lion share income is obtained from farming activity. Moreover, Yenesew et al (2015) survey result in Debre Ellias Woreda showed that much of the rural households (61%) in the study area practice diversified livelihood strategies that combined onfarm activity with off/non-farm activities. In similar way, Agidew Abebe (2018) in Ethiopia also reported that households in the study area engaged in few income generating activities, can be both farm/pastoral and non-farm/pastoral activities. Another study conducted in Lemmo district, Hadiya zone by Desalegn Anchiso & Moges Shiferaw (2016) indicated that the alternative livelihood strategies that were used by the study households were agriculture only, agriculture plus off-farm, agriculture plus non-farm and agriculture plus non-farm plus off-farm.
On the other hand, the non-farm livelihood activities have also been seen in specific perspective In view of that, a Grace Carswell (2002) study on livelihood diversification in southern Ethiopia show that trading is the single most important activity, and is carried out by 14% of all adults. By the same token, Bekele Teshome and Abdi Khalil (2013) also showed that sale of homemade, farm implements and drinks, and non-farm employments was found to be the most important source of off-farm incomes in the study area. Likewise, Benbera et al (2016) publicized that both farm land owners and landless households engage in non-farm activities such as; petty trades, daily labor, local brewery, formal non-farm employment, fire wood and charcoal sale, food preparation and sale, hand crafts, carpentry, transport of produces (from and to the market/farm), sand extraction and sale. As well, Birhanu et al, (2016) findings similarly show that the livelihood of pastoralists diversified into crop production, petty trades, fire wood and charcoal production.
3.3. Contributions of non-farm livelihood diversification in Ethiopia
Non-farm activities have various roles in the improvement of rural people livelihood in Ethiopia. A few results have been reported about the contribution of the non-farm activities in numerous studies settings. Amid of all findings, the researchers have signposted the multi-positive effects of non-farm livelihood activities among Ethiopia rural households.
Primarily, several studies in Ethiopia have disclosed the roles of non-farm livelihood activities on poverty reduction. Agreeing with Amogne et al (2017) study, diversifying the sources of livelihood for subsistence farms beyond agriculture plays a significant role in reducing poverty as well as withstanding the adverse impacts of climate change. It has also indicated by Asfaw Albora (2018) that the diversity of rural livelihoods in low income developing countries is receiving increased attention in discussion about rural poverty reduction, since 1990.
Moreover, the non-farm activity lessens the rural households’ vulnerability of Ethiopia rural households. In the same way, Prowse Martin (2016) found that diversity has long been viewed as a risk minimization strategy in the face of increasing climatic and economic risk in developing country. It plays significant positive roles such as reducing the adverse effects of mismatch between uneven farm income streams and continuous consumption requirements, spreading out risks among variety of activities and creating employment opportunity (Kebede et al, 2014). A similar study by Temesgen, Lingler and Hassan (2010), in Blue Nile Basin found that smallholder farmers who have non-farm source of income are less likely to depend on food aid and liquidating their assets in time of climate induced shocks.
Furthermore, non-farm activities have a greater contribution in the Ethiopia households’ incomes improvement and food security. As distinguished by Mathewos et al (2016), those practicing livelihood diversification have witnessed an implication in households’ consumption, increased income, improved food security status, and the most commonly reported reason for diversification was meeting households’ necessity. Sahilu Dirriba and Bekele Tassew (2015) also showed that the households engage in diversify livelihood strategy away from purely crop and livestock production towards farm, non-farm and off-farm activities that are undertaken to broaden and generate additional income for survival and cope with the harsh and difficult environment.
On the other hand, non-farm activities play a greater role into the share of rural households’ incomes. It was evident from the study by Dereje Tesema (2018) that farmers integrate farm and non-farm livelihood activities in order to benefit from cash and survival needs. Barrett and Reardon (2000) reported that the share of non/off-farm income in rural Ethiopia averaged about 36% in 1989/90. Still, the share of the non-farm activities in Ethiopia declining year after year.