Urban Farm-Nonfarm Diversification, Household Income and Food Expenditure in Ghana

Abstract

Abstract:This paper investigates the impact of farm-nonfarm diversification (FND) on household income and food expenditure in urban Ghana using propensity score matching (PSM) technique to account for potential selection bias. We find diversified households to be statistically different from undiversified households in terms of household characteristics. Age, gender, educational attainment of the household head, household size, ownership of livestock and agricultural land, and receipt of miscellaneous and rent incomes are positive and significant determinants of FND in urban Ghana. In addition, we find that participation in both farm and nonfarm activities positively and significantly impacts household income and food expenditure. In the light of growing urbanization, with its implications for unemployment, poverty and food insecurity, we recommend diversification among urban households as a means of smoothing income and consumption.

Impact of income diversification on rural household food security in Ethiopia

“…The probable reason is that age of the household helps to participate in additional income source through experience. This result is consistent with a study by Ampaw, Nketiah-Amponsah, and Senadza (2017) in Ghana, who found a positive relationship between the age of farmers and the probability of their participation in non-farm and off-farm activities.…”

“…For one unit increase in the value of livestock, the probability of participation in both agriculture and non-agriculture sources of income generation would increase by 12.2%. This result is in line with the findings by Ampaw, Nketiah-Amponsah, and Senadza (2017) and Yizengaw (2014) who found a positive relationship between the number of livestock and the probability of participation in non-farm and off-farm activities.…”

The benefits and trade-offs of agricultural diversity for food security in low- and middle-income countries: A review of existing knowledge and evidence

“…We excluded studies on nonfarm diversification although we are aware that they can be critical strategies to increasing food security (e.g. Ampaw et al, 2017;Barrett et al, 2001) but we consider studies on agricultural activities that increase farmer's income as a component of food access. We also exclude studies that discuss benefits of specific crops without also clearly stating that agricultural diversity increases overall, for example high-value or wild crops (Mavengahama et al, 2013) or crops perceived as being underutilized or neglected (Kahane et al, 2015;Mabhaudhi et al, 2017Mabhaudhi et al, , 2016.…”

The Impact of Social Conditions and Regional Differences on Urban Farmer Household Income in Makassar City

“…Many researchers research farmers' household income in various countries, such as urban agricultural households' impact on food security status (Fei et al, 2020). Food insecurity (Mcdougall et al, 2020) in Ibadan Metropolis, agricultural and non-agricultural diversification on household income (Kansiime et al, 2021), the existence of urban agricultural households in Maseru can support food security (Galli et al, 2020), the contribution of integrated urban agriculture to household income in Kinondoni Municipality (Yusuf et al, 2015), as well as determinants of household income between urban and rural areas with different characteristics in terms of poverty in India (Ampaw et al, 2017). However, there has not been a study that investigates the household income of urban farmers by utilizing a qualitative independent variable regression, which analyzes the relationship between different agricultural production areas and its impact on household income.…”