DETERMINANT OF OFF/NON- FARM INCOME DIVERSIFICATION IN RURAL ETHIOPIA: THE CASE OF GOBA DISTRICT, BALE ZONE, OROMIA, ETHIOPIA

ABSTRACT Rural households diversify their activities into off-farm and non-farm activities to increase income and wellbeing, reduce vulnerability, improved food security, and sustainable use of the natural resource base. This study, therefore, mainly strives to identify determinant of off/non-farm income diversification in rural Ethiopia in the case of Goba District. Primary data was gathered using structured survey questionnaires that carried out by well-trained enumerators and supervisors. Using multistage sampling design a total sample of 342 households were selected. Logit model was used to identify determinant of off/non-farm participation. The results suggested that sex of household head, education of household head, household size, number of livestock owned in TLU, access to electricity, mass media, and climate shock were found to be significant in influencing household’s decision to participate in off/non-farm income activities. The study has concluded that the households in the study area are likely to have a diversified income to off/non–farm activities when they have higher educational level, access to mass media, family size and access to electricity facilities. Therefore, the government should design appropriate policy and build human capital through education and skills training opportunities to motivate rural households to engage in income diversification to ensure income security, increased well-being, reduced vulnerability and sustainable use of natural resources.7