Abstract:
Income diversification is a strategy to cope with economic, environment shock, and an
instrument to ease poverty. The purpose of this study is to assess determinants of income
diversification and coping strategies of rural household’s food security in Walmara District
of Oromia special Zone, Ethiopia. The study is based on primary data collected from 137
sample selected at random using household survey questionnaire. Additional information was
also obtained from focus group discussion, key informant interview and personal
observation. The data has been analyzed by descriptive statistics and econometric model
(multinomial logistic regression) using statistical package social science software.
Qualitative data were used to substantiate the responses of questionnaire. Descriptive
statistics result pointed out that about 35.8% of sample respondents depend on, on-farm
activities, 28.5% households rely on on-farm + off- farm activities, 23.4% households
depend on on-farm + non-farm activities and 12.4 % rely on combined on-farm activities
with non-farm and/or off-farm activities to achieve their livelihood. The results from
Multinomial logistic regression confirmed that sex of household head, total annual income of
the household, access to irrigation and were found to be positively and significantly
influenced households choice of alternative income diversification strategies. Ages of the
household, membership in cooperative, access to information and livestock size were found to
be negatively and significantly influenced household’s choice of alternative income
diversification strategies. The study also revealed that the main coping strategies of rural
households to overcome food insecurity were Reduce number of meals eaten in a day, relying
on less preferred and relies on less preferred and selling charcoal and selling fire wood. It is
recommended that capacity building, promoting economic and social institutional support by
the government, promoting and creating positive environment for the emerging livelihood
alternatives like non-farm and off-farm activities improve the livelihood of rural households.