ABSTRACT

Many rural households engage in farm and non-farm activities to increase household income during economic hardship and diversify income sources. The study was conducted to compare the effect of farm and non-farm activities on rural household income in Abia and Ebonyi States. In conducting the study, multi-stage random sampling procedure was used to select a sample size of 240 farmers. Data collection was through structured questionnaire and analyzed using both descriptive and inferential statistics such as z-test for independent samples and multiple correlation and regression 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. In Ebonyi State, household annual mean farm income was six hundred and eighty-eight thousand, one hundred Naira (N 688,100.00) representing 65.2% of total household income, while non-farm activity had three hundred and sixty-seven thousand, seven hundred and twenty-six Naira sixty-eight kobo(N367,726.68) representing 34.8% of household income. Test of hypothesis one revealed no significant difference between farm and non-farm income in Abia state. Hence, the null hypothesis was accepted at 5%. Test of hypothesis two revealed a significant difference between farm and non-farm income in Ebonyi state in favour of farm income. Therefore, the null hypothesis was rejected at 5%. Test of hypothesis three indicated no significant difference in farm income between Abia and Ebonyi States. Hence, the null hypothesis was accepted at 5%. Test of hypothesis four indicated a significant difference in non-farm income between Abia and Ebonyi states. Hence, the null hypothesis was rejected at 5%. Test of hypothesis five showed a significant difference in the profitability of non-farm activities between Abia and Ebonyi states. Thus, the null hypothesis was rejected at 5%. Test of hypothesis six revealed no significant difference in rating of factors that determine engagement in non-farm activities between Abia and Ebonyi states. Thus, the null hypothesis was accepted at 5%. Test of hypothesis seven revealed no significant influence of the factors that determine engagement in non-farm activities. Hence, the null hypothesis was rejected at 1%. The study concluded that Abia state rural farm households do well in non-farm enterprises than rural farm households in Ebonyi state. This was because Ebonyi state is more rural in nature than the Abia state and provides greater diversification of agricultural production than Abia State. The study recommended among others, that, while encouraging engagement in non-farm activities, the extension should emphasize diversification of agricultural production as a form of risk reduction strategy to minimize much engagement in non-farm activities to increase food production.