Smallholder Farmers Crop Commercialization, Livelihood Diversification Strategies and Multidimensional Poverty: West Gojjam Zone, North Western Ethiopia
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Date
2023-01
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Addis Ababa University
Abstract
Commercializing crop production is the pathway for economic development. Previous studies examined agricultural commercialization and diversification process; agricultural commercialization and its impact on income and nutrition; determinants of rural poverty; determinants of market orientation and crop output commercialization. However, investigating the association between crop commercialization; livelihood diversification strategies; and poverty is scanty. This study was aimed at investigating the association between smallholder farmers‘market orientation, crop output commercialization, livelihood diversification strategies and poverty and determinants of each theme. The study used pragmatism research paradigm comprises quantitative and qualitative research designs used to understand determinants of smallholder farmer’s market orientation, crop output commercialization, and rural households‘livelihood diversification strategies and impact of output commercialization on household poverty in west Gojjam zone, northwestern Ethiopia. Multistage random sampling method was used to sample 405 respondents and a structured interview was conducted. The quantitative data was analyzed using descriptive statistics, one-way ANOVA, Chi-square test, independent sample t-test, zero-inflated beta regression, multivariate probit regression, and endogenous switching regression. Qualitative data were collected using focus group discussion and individual interviews, which were then, analyzed using narration and thematic methods. The results of the analysis revealed education, farmland rental contracts, infrastructure development, and soil fertility improving technologies are needed to increase market orientation. Better farmland allocation for marketable crops, access to technologies, lowering input purchase costs, reducing output market price seasonal volatility promotes output commercialization. Purpose, combined with sector, location, and function, is an important criterion to classify livelihood diversification strategies. Accordingly, rural households‘livelihood diversification strategies classified in to onfarm wealth accumulation, off-farm survival, non-farm survival self-employment and non-farm survival wage-employment and non-farm wealth accumulation. Agro-ecology and crop output commercialization enhances rural households‘engagement in on-farm and non-farm wealth accumulation livelihood diversification strategies. Finally, crop output commercialization reduces rural households‘poverty. The results imply market orientation translates to output commercialization; output commercialization induces rural households‘engagement in on-farm and non-farm wealth accumulation livelihood diversification strategies; and reduces household poverty. Therefore, commercializing smallholder farmers‘crop production prompts rural households‘engagement in wealth accumulation livelihood diversification strategies and improvement of households‘welfare.
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Keywords
agroecology, commercialization, livelihood diversification strategies, poverty and pragmatism research paradigm