Non-farm livelihood diversification in selected rural and peri-urban communities in the Sunyani west district

Abstract

Non-farm activities are widespread and thought of as an important source of income and employment for some rural and peri-urban dwellers. This study sought to investigate rural non-farm livelihood diversification among farmers in the Sunyani West District. Cross-sectional survey design was used and data were collected from 251 farmers for the purpose of analysis. An interview schedule and FGD guide were used for collection of the data. The data were analyzed with descriptive statistics, binary logistic regression, independent sample t-test, Chisquare test and one-way analysis of variance. The study pointed out that the nonfarm sector was heterogeneous and involved several activities with trading being the most prominent. Although farmers predominantly pursue agriculture as their livelihood strategy, they also pursue non-farm livelihood activities due to push rather than pull factors. Age, membership of association, farm income and market access significantly influences non-farm livelihood diversification. There was higher share of income for farmers who diversified into non-farm livelihood activities. In addition, income from this sector was mainly used for consumption and payment of bills. Non-farm activities are a major source of self-employment but not paid-employment. Inadequate access to credit and low business opportunities were major constraints that impede the development of the non-farm sector in the district. In view of this, it is recommended that the District Assembly must make budgetary allocations to support programmes that facilitate the nonfarm sector and also give rural and peri-urban entrepreneurs tax rebate to support their businesses. Besides, the study recommends that banking and micro-finance institutions must design special credit programmes for rural entrepreneurs.