INCOME DIVERSIFICATION AND DRIVERS OF RURAL SMALLHOLDER FARMERS' INCOME IN ENUGU STATE NIGERIA

Rural smallholder farmers in developing countries were faced with the challenge of low income which disposed them to malnutrition and high poverty rate. This affects their productivity, livelihood and wellbeing. Understanding the drivers of income and its patterns is very important to curtail these challenges. Therefore, this study analysed the level of income diversification, shares of different income sources and drivers of smallholder farmers income in Enugu State Nigeria. Primary data collected from 180 rural smallholder farmers were analysed using descriptive statistics and multiple regression. The study revealed that the majority (65.6%) of the smallholder farmers did not diversify their income, thus agriculture is their major source of income. Farm income, off-farm income and nonfarm income contributed 72.3%, 16.3% and 11.4%, respectively to rural smallholder farmers' income. The identified contributing factors to smallholder farmers' income were education, farm size, access to agricultural extension services, income derived from off-farm and non-farm activities, and access to credit facilities. The only inhibiting factor to smallholder farmers' income was the age of the farmers. This study recommends increase in diversification level of smallholder farmers' income and increase in cultivated farm size to boost their economic status. Provision of accessible credit facilities at a low or no interest rate, quality education and more extension contacts by the governments and related agencies to the smallholder farmers were also needed to increase smallholder farmers' income which will improve their wellbeing.