<abstract xmlns="http://www.w3.org/1999/xhtml"><p>This paper aims to analyze the extent of off-farm income diversification of farm households in rural areas of Nigeria by age, gender, educational qualification, farm size, household size and across the different regions in the country. The determinants of such diversification were also identified. Data for this study were obtained from 836 rural farm households using the Nigeria General Household Survey, 2013. The Herfindahl Index was employed to analyze the share of income from different income generating activities, extent of off-farm income diversification. Tobit Regression Model was used to identify the determinants of such diversification.</p><p>An estimate of 0.28 was observed for the Nigerian rural farm households with a higher extent of diversification in the Northern regions. Males, older farmers, and farmers without formal education had a higher extent of diversification. The results show that having higher landholdings, post-primary education, access to electricity and location are major factors. Identifying the extent of diversification into the different off-farm sectors is relevant to inform policy and provide opportunities for promoting the different off-farm sectors with an ultimate goal of improving rural farm households’ livelihoods. This has its resultant effect on development of the entire rural space.</p></abstract>

This paper aims to analyze the extent of off-farm income diversification of farm households in rural areas of Nigeria by age, gender, educational qualification, farm size, household size and across the different regions in the country. The determinants of such diversification were also identified. Data for this study were obtained from 836 rural farm households using the Nigeria General Household Survey, 2013. The Herfindahl Index was employed to analyze the share of income from different income generating activities, extent of off-farm income diversification. Tobit Regression Model was used to identify the determinants of such diversification.An estimate of 0.28 was observed for the Nigerian rural farm households with a higher extent of diversification in the Northern regions. Males, older farmers, and farmers without formal education had a higher extent of diversification. The results show that having higher landholdings, post-primary education, access to electricity and location are major factors. Identifying the extent of diversification into the different off-farm sectors is relevant to inform policy and provide opportunities for promoting the different off-farm sectors with an ultimate goal of improving rural farm households’ livelihoods. This has its resultant effect on development of the entire rural space.

Off-farm income diversification among rural farm households in Nigeria

Department of Agricultural Economics and Agribusiness

Agricultura Tropica et Subtropica

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Off-farm income diversification among rural farm households in Nigeria"}

This paper aims to analyze the extent of off-farm income diversification of farm households in rural areas of Nigeria by age, gender, educational...

Off-farm income diversification among rural farm households in Nigeria

Published Online: Mar 20, 2020

Page range: 149 - 156

Received: May 24, 2019

Accepted: Dec 30, 2019

DOI: https://doi.org/10.2478/ats-2019-0017

Keywords
off-farm, income diversification, farm households, Herfindahl Index, Tobit model

© 2019 Ifeoluwa Damilola Adeoye et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Off-farm income diversification among rural farm households in Nigeria

Published Online: Mar 20, 2020

Page range: 149 - 156

Received: May 24, 2019

Accepted: Dec 30, 2019

DOI: https://doi.org/10.2478/ats-2019-0017

Keywordsoff-farm, income diversification, farm households, Herfindahl Index, Tobit model

© 2019 Ifeoluwa Damilola Adeoye et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
off-farm, income diversification, farm households, Herfindahl Index, Tobit model