Exploring the nexus between financial inclusion, livelihood diversification, and farm income in rural Nigeria

Livelihood Diversification as an Adaptation Strategy to Climate Change and Household Food Security of Livestock Holders in Pakistan

Rural farm households continue to face significant risks from climate change, resulting in many of them diversifying their livelihood sources into other income‐generating activities to increase their incomes and improve food and nutrition security. In this study, we examine the drivers and impact of farm households' participation in livelihood diversification as a climate change adaptation strategy among livestock farmers in rural Pakistan. We employ a multinomial endogenous switching regression (MESR) model to account for potential selection bias from both observed and unobserved factors. The empirical results indicate that the average temperature and precipitation contribute significantly to the joint adoption of livestock and non‐farm activities among rural households. In addition, the total number of earning members in the household, total cultivated land, distance to city, and climate change information are significant drivers of participation in livelihood diversification strategies. The results also demonstrate that diversified households with three livelihood sources are more food secure compared to households who did not diversify or are less diversified with two livelihood sources. Our findings suggest that development policies in rural Pakistan should promote livelihood diversification by engaging farm households in other income‐generating activities to improve their food security.

Credit Access and Constraints to Livelihood Diversification among Rural Farmers in Kano State, Nigeria

Credit access is a critical enabler of livelihood diversification among rural households, particularly in resource-constrained and climate-vulnerable regions like northern Nigeria. This study examined the extent of credit access, major constraints, and their influence on livelihood diversification among 450 smallholder farmers in Kano State, Nigeria. Data were collected through a multistage sampling procedure and analyzed using descriptive statistics, binary logit regression, and the Simpson Diversification Index. Results revealed that respondents were predominantly male (81.1%), married, and middle-aged, with small landholdings and low monthly incomes. Farming remained the dominant livelihood activity, supplemented by livestock, poultry, and petty trading. Formal credit access was limited (31.8%), with most households relying on informal sources such as friends and relatives. The primary constraints to diversification were limited access to credit, high startup costs, and high input prices. Binary logit and other regression analyses confirmed that financial exclusion significantly hinders diversification efforts. The study concludes that financial exclusion remains the main structural barrier to livelihood diversification. It recommends expanded rural credit delivery, reduced borrowing costs, strengthened cooperative financing, and enterprise support programs to enhance household resilience and welfare in Kano State. 

Alignments and Trade-Offs in Multidimensional Household Diversification: A Pseudo-Panel Analysis of Standard Practices and Public Programs in Rural Ethiopia

Does participation in farmer-producer companies enhance farm income? Evidence from Assam

This study investigates if participation in Farmer Producer Companies (FPCs) increases farm income amongst agricultural households in Assam, India. It evaluates the effectiveness of institutional participation in improving farm profitability and identifies the key determinants influencing income variation. Using primary cross-sectional data from 404 farm households, the study employs descriptive comparisons and multivariate regression analysis to assess the role of FPC participation. Farm income per unit of landholding is measured using three complementary indicators – Gross Value Added per hectare (GVAH), Farm Business Income per hectare (FBIH), and Gross Profit from Farming per hectare (GPFH) – capturing different dimensions of farm profitability. Whilst FPC-member farmers report higher average income, the differences become statistically insignificant after controlling for farm, household and locational factors. Cropping intensity and irrigation significantly influence income, whilst regional and social disparities persist. Disaggregated results show positive relationship for banana and fishery but weaker outcomes for potato due to inadequate postharvest infrastructure. Field evidence indicates that these effects operate through improved input access, reduced transaction costs and better price realisation through collective marketing. The use of cross-sectional data limits causal interpretation; future research using longitudinal or quasi-experimental approaches is recommended. Strengthening FPCs can promote collective empowerment, income equity and rural economic resilience, contributing to inclusive agricultural development. This study integrates multiple income indicators with crop-specific analysis to provide a nuanced assessment of FPC's role in smallholder agriculture.

Role of SHG-Based Microfinance in Enhancing Household Income and Livelihood Security in Rural Uttarakhand

Rural households in the hill regions of Uttarakhand face multiple livelihood challenges due to small landholdings, rain-fed agriculture, limited employment opportunities, and increasing out-migration. In this context, Self-Help Group (SHG)-based microfinance has emerged as an important mechanism for improving financial access and strengthening local livelihoods. The present study examines the role of SHG-based microfinance in enhancing household income and livelihood security in rural Uttarakhand. The study is based on primary data collected from 100 SHG member households selected from rural areas. The analysis focuses on changes in income levels, livelihood diversification, savings behaviour, and financial stability after joining SHGs. A before-and-after comparison approach was used to assess the economic impact of SHG participation. The findings reveal a significant improvement in household income after joining SHGs. The average annual income increased from approximately Rs. 70,000 to Rs. 95,000, with many households moving into higher income categories. SHG participation also encouraged livelihood diversification, as the proportion of households depending on a single source of income declined considerably. Members utilized microcredit to undertake activities such as dairy farming, vegetable cultivation, small retail businesses, tailoring, and food processing. In addition to income enhancement, SHG membership contributed to improved financial discipline and livelihood security. A majority of respondents reported better ability to meet household expenses, handle emergencies, and reduce dependence on informal moneylenders. Regular savings and easy access to credit strengthened household resilience against economic uncertainties. The study concludes that SHG-based microfinance has made a positive contribution to income improvement and livelihood stabilization in rural Uttarakhand. Strengthening market linkages, skill development, and institutional support can further enhance the long-term sustainability of SHG-led livelihood initiatives.

Determinants of income, savings, access to credit, asset ownership, and food access among banana smallholder farmers in Meru District Council and Moshi Rural District, Tanzania

Background : Banana smallholder farmers in sub-Saharan Africa rely heavily on banana farming for both food and income generation. Despite the crop’s potential, smallholder farmers have limited knowledge of improved banana varieties, as well as harvesting, processing, storage technologies, exhibit low participation in farmers’ associations and cooperatives, alongside limited access to credit. Therefore, there was a need for this study. The study examined the determinants of income, savings, access to credit, asset ownership, and food access among banana smallholder farmers in Meru and Moshi Rural Districts, Tanzania. Specifically, the study aimed to assess the levels of livelihood outcomes and to analyse the socio-economic factors influencing livelihood outcomes among banana smallholder farmers. Methods: The survey employed a cross-sectional study design and interviewed a total number of 352 banana smallholder farmers in Meru District Council and Moshi Rural District in Tanzania. Data were collected with the aid of questionnaires and analysed using descriptive statistics, a composite Livelihood Outcome Index (LOI), and a multivariate probit (MVP) model. Results : The descriptive results found, low, moderate, and high livelihood outcomes have been attained by 47%, 34%, and 18% of smallholder banana growers, respectively. The results from MVP model revealed that educational levels assisted in asset accumulation (β = 0.109, p < 0.10), households with higher incomes used mobile phones (β = 0.151, p < 0.10), cooperative membership significantly increased business income (β = 0.289, p < 0.05), households engaged in non-farm business activities were more likely to have higher business income (β = 0.263, p < 0.10), livestock ownership had a significant contribution to household savings (β = 0.288, p < 0.05), and greater distance from markets reduced the likelihood of mobile phone use (β = −0.107, p < 0.10). Conclusion and recommendations: The study concludes that household socio-economic features are most important for improving the livelihood outcomes of banana smallholder farmers. The research recommends that banana smallholder farmers should engage in livestock rearing and membership in cooperatives so that they can improve sales of bananas, access credit, improve mobile use, accumulate asset, and enhance food security, rather than depending on banana farming alone. Finally, the study recommends that government investments in rural infrastructure, particularly road networks, market facilities, and telecommunications infrastructure, should be prioritized to reduce the constraints associated with market distance.