Understanding the Impact of Livelihood Diversification on Food Security Among Smallholder Farmers in West Gojjam Zone, Amhara Region, Ethiopia.

Abstract

Background: Livelihood diversification is widely recognized as a vital strategy for improving food security among smallholder rural households. However, achieving meaningful diversification remains a challenge due to various socioeconomic and institutional constraints. This study investigates the impact of livelihood diversification on food security in the West Gojjam Zone of Ethiopia. Methods: A cross-sectional research design was employed using primary data collected from 390 randomly selected smallholder farmers through a multistage sampling technique. Binary logistic regression was used to identify factors influencing livelihood diversification, while Propensity score matching (PSM) was applied to estimate its causal impact on food security. Robust standard errors were reported to address potential heteroscedasticity, and diagnostic tests confirmed no major multicollinearity or model misspecification issues. Key Results: Among the sampled households, 108 engaged in livelihood diversification. Regression results revealed that education (+15.4%) and household size (+5.9%) significantly increased the likelihood of diversification, whereas access to irrigation (-35.7%), livestock ownership (-2.9%), and credit access (-12.08%) negatively affected it. PSM analysis confirmed a positive and statistically significant impact of diversification on food security, increasing daily kilocalorie intake by 118-136 kcal. Conclusion/Policy Implications: The findings suggest that livelihood diversification significantly enhances food security among smallholder farmers. Therefore, policies should promote diversification through expanded irrigation infrastructure, vocational training (TVET and universities), and support for activities such as animal fattening, dairy farming, and beekeeping. Extension services and microfinance institutions should be mobilized to provide technical and financial support focused on diversified farming strategies.