Abstract:
The study was conducted to examine Non-Farm Employment and farm production on
smallholder farmers: - The Case of Ambo district, Oromia Regional State, Ethiopia.
To identify the problem, primary sources and primary methods of data collection through
survey questionnaire was carried out on 144 sampled households. Both descriptive and
econometrics analysis were employed to meet the objective of the study. The results from
the descriptive analysis indicated age of the household head, educational level of the
household head, access to training, extension contact, land tenure, total land owned and
means of land cultivation have major challenges on the participation of off- farm
activities in the study area. After endogeneity problems among different factors are
detected, logistic regression model was run to identify decision (determinants) of off-farm
activities. The results revealed that education of the household head; total farm size and
total land holding were strongly and positively related to the participation on off-farm
activities; while age of the household head and sex of the household head had a negative
influence on the participation of off farm activities. Accordingly, the study recommends
that expansion and intensification combination of interventions aim at enhancing and
promoting education through provision of awareness formation should be emphasized in
rural areas of the district
