Farm Land Out Sourcing For Sugarcane Production And Its Effect On Farmer Household’s The Livelihood Outcome In Boset District, Oromia National Regional State, Ethiopia

Abstract

This study was conducted in Boset district, Oromia regional state, Ethiopia, to examine the effects of farm land outsourcing on household livelihood outcomes. The research design for the study was a descriptive cross-sectional survey. The data were collected using key informant interviews (KIIs), focus group discussions (FGDs), and a survey of 147 households (HH), in which 71 cane growers and 76 non-cane growers participated. Quantitative data was analyzed using descriptive statistics, the Chi-square test, t-test, and multiple regressions to address the gaps in the issue statement income inequalities, asset monetary disparities, food security disparities, and other problems affecting the livelihoods of sugarcane producers. The analysis results show that there is a significant difference in household annual income between the sugarcane producers and non-producers samples, t(df = 145) =16.837, p = 0.01. The mean values indicate that non-producing households have significantly more income (ETB = 52,196.9341).The result shows that the expansion of sugarcane on farmers' land has a negative effect on household annual income. The research found that, on average, the cane growers (5.1) had lower household dietary diversity scores than the non-cane growers (7.2) at 95% CI (t144.6 = 14.39, p =.0.000).The result shows that the expansion of sugarcane on farmers' land has a negative effect on household food security. This shows that the expansion of sugarcane on farmers' land has a negative effect on household livelihood outcomes. The t-test results show a significant difference in the monetary value of household assets between the sugarcane producers and non-producers samples; t(df = 131) =-9.661, p=0.01. The mean values indicate that non-producing households have significantly more asset monetary value (ETB = 67,397) than sugarcane producers (ETB = 25,909). The multiple regression model results show that land size, livestock size, extension contact are statistically significant and had positive effect on livelihood outcomes of the householders. From this study conclusion showed that household livelihood outcomes were negatively impacted by the spread of sugarcane on farmers' land. Therefore there should be sugarcane production policies that are advantageous to farmers who lease their farmland for this purpose