Determinants of Income Diversification and Coping Strategies of Rural Households Food Security: in Walmara District, Oromia Special Zone, Ethiopia

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.