Drivers of Smallholder Farmers' Involvement in Off-Farm Activities in Guto Gida District, Oromia Region, Ethiopia

Utilizing data from the Guto Gida Districts in the East Wollega zone, this research investigates what drives smallholder farmers to engage in off-farm activities. A sample of 355 respondents was drawn using a multi-stage sampling procedure combined with a simple random sampling strategy. This study utilized both primary and secondary data sources. A semi-structured questionnaire was used to gather primary data from household heads. Drivers of smallholder farmers’ participation in off-farm employment were examined using descriptive analysis and the probit model to enhance smallholder farmers' knowledge and ensure the availability of agricultural inputs and credit. The probit model disclosed that the household's gender, access to livestock, market location, and training were positively and significantly associated with smallholder farmers' engagement in off-farm activities in Guto Gida district. Additionally, the distance to the nearest market influenced household heads' off-farm activities at a 5% significance level. The study recommended ongoing awareness creation about off-farm activities through training and extension services. This should involve promoting off-farm opportunities, ensuring the availability of credit and agricultural inputs, and enhancing the knowledge of elder farmers.