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Beyan Ahmed (2016). What Factors Contribute to the Smallholder Farmers Farm Income Differential? Evidence from East Hararghe, Oromia, Ethiopia. Journal of Asian Scientific Research, 6(7): 112-119. DOI: 10.18488/journal.2/2016.6.7/22.214.171.124
Improvements in the farm household?s income and identifying the factors contribute to its improvement is very critical for enhancing food and poverty reduction strategy of Ethiopia. The aim of this paper is to investigate the factors contributing to rural farm households? income differential in Haramaya district East Hararghe, Oromia, Ethiopia. The study used both primary and secondary data. Primary data was collected from 120 sample respondents in 2015 production year. The study was used linear regression model to identify contributing factors and the model output indicated that, irrigation use, livestock holding, education level of household head, cultivated area, age and amounts of fertilizer used were the significant variables that contribute to farm income differential in the study area. Therefore, the policy implication of the study is that, increasing and proper utilization of the aforementioned variable?s should have get due attention to speed up the enhancement of rural farm household income.
Enhancing crop and livestock incomes are critical strategic issue and doing all possible efforts to alleviate the ever increasing agricultural problems is, therefore, not an assignment to be left for tomorrow. In this endeavor, identifying main factors contribute to the households’ farm income has been taken as one important strategy to relieve agriculture from dependence on nature and thus improve its productivity. So, the result of the study would contribute to policy makers to design appropriate farm income diversification development strategies of the country in general and the region in particular. The result of the study would also help other researchers who need to conduct a research on related topics in the study area and elsewhere. The result also helps smallholder farmers to identify the effects of socio-economic factors on their farm income and take appropriate measures of developmental plan.