Rural non-farm income diversification: implications on smallholder farmers' welfare and agricultural technology adoption in Ghana

Abstract

This study explored the potential impact of rural non-farm income diversification on households' welfare and adoption of Zai-technology (a proxy for agricultural technology adoption) using primary data collected from agricultural households in the Upper East region of Ghana. We used Propensity Score Matching (PSM) and Inverse-Probability-weighted Regression Adjustment (IPWRA) techniques to estimate welfare and Zai-technology impacts of non-farm income diversification. After controlling for differences in covariates, the results show that non-farm income diversification increases the likelihood of Zai-technology adoption and contributes to significant household welfare gains. We therefore suggest that the activities of agricultural extension services and farmer-based organizations (FBOs) be enhanced as they facilitate the diversification of non-farm incomes, thereby increasing investment in productivity-enhancing technologies ( Zai ) and household welfare.

Patterns of Agricultural Diversification in China and Its Policy Implications for Agricultural Modernization

“…Secondly, from the micro perspective, the determinants of famers’ diversification strategies and their impacts on farmers’ welfare and on the ecosystem have been ignored in our study due to the lack of microdata at the household level. In fact, different production units have different strategy options [ 102 ]; it is the farmers who decide whether to diversify or not [ 103 ], and AD does have an impact on farmers’ welfare and adoption of technology [ 104 ] and on the resilience of the agrosystem [ 105 ]. Therefore, factors underlying farmers’ decisions for agricultural diversification, especially the impact of government policy on farmers’ options [ 106 ], deserve special attention, and the potential impacts of regional and national agricultural diversification on ecosystem functions require a thorough study in the future.…”

Ingresos rurales no agrícolas de hogares de pequeños productores agropecuarios en Colombia

“…El ingreso rural no agrícola (IRNA) es aquel generado por habitantes rurales a través del autoempleo, el trabajo asalariado en los sectores secundario y terciario de la economía, también se incluye el derivado de fuentes que no están relacionadas con el mercado de trabajo, como las rentas y las transferencias privadas o públicas (Danso-Abbeam et al, 2020). Cabe mencionar que el ingreso derivado del trabajo asalariado en actividades primarias en fincas agropecuarias (jornales fuera de la finca) no está incluido en la presente definición de IRNA.…”

“…La estructura de los hogares rurales refleja cambios continuos en el entorno económico, social, cultural, histórico, político, tecnológico y geográfico. La literatura existente ha documentado que la participación en la diversificación de ingresos se percibe como una de las formas de escapar de la trampa de la pobreza (De Janvry et al, 2005;Reardon et al, 2007;Hong et al, 2018;Danso-Abbeam et al, 2020). La diversificación de ingresos actúa como un método de manejo y afrontamiento de riesgos destinado a amortiguar las consecuencias de las malas cosechas y las dificultades económicas de los hogares.…”

An Estimation of the Effect of Green Financial Policies and Constraints on Agriculture Investment: Evidences of Sustainable Development Achievement in Northwest China

“…Producers' managerial scale and managerial status, for example, have a substantial influence on their acceptance of the green farming production method ( 21 , 22 ). Producers' off-farm financial integration does have an economic impact on peoples living conditions and farming techniques acceptance ( 23 , 24 ). The off-farm occupation increases their ability to gain new technology 2004), which impacts overall productive expenditures.…”