EFFECT OF FARM AND NON-FARM ACTIVITIES ON RURAL HOUSEHOLD INCOME IN ABIA STATE, NIGERIA

Abstract

The study compared the effect of farm and non-farm activities on rural household income in Abia State. In conducting the study, multi-stage random sampling procedure was used to select a sample size of 120 farmers. Data collection were through structured questionnaire and analyzed using both descriptive and inferential statistics such as z-test for independent samples at 0.05% level of significance. The findings revealed that, in Abia State, farm activities contributed an average annual income of five hundred and ninety-four thousand, four hundred and thirty-three Naira thirty-two kobo (N594,432.32) representing 51.9% of household income greater than non-farm activities that contributed five hundred and thirty-six thousand, one hundred and seventy Naira, seventy-two kobo (N532,170.72) representing 48.1% of household income. Test of hypothesis revealed no significant difference between farm and non-farm income in Abia State. The study concluded that Abia State rural households are diversifying in farm and non-farm activities at the same level showing coping strategy to household income and general economic uncertainties. The study recommended that, while encouraging rural households’ diversification of economic activities, the extension agents should emphasize more in diversification of agricultural production to minimize much engagement in non-farm activities to increase food production.