Factors influencing Farmers’ Income in Tanzania: Evidence from Babati District

Kavenuke,, Benitho Severine (2017) Factors influencing Farmers’ Income in Tanzania: Evidence from Babati District. Masters thesis, The Open University of Tanzania.

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Abstract

This study assessed the critical factors that determine farmer’s income in Babati District Council, Manyara region, Tanzania. The approach and research design used were quantitative approach and cross-sectional survey respectively. Purposive and simple random samplings were employed. Closed and open-ended questionnaires together with documentary review from the institution’s report were used as tools of data collection. Results showed that on average every smallholder maize farmer statistically found to earn net farm income of TZS 1,159,913 generated out of maize farming enterprise per annum. Empirically, the findings also showed that by use of stepwise multiple regressions, eight critical determinants were found to be the main factors influencing net cash income out of ten examined. These were age of a farmer, level of education, capital used, farm size, use of improved agricultural inputs, experience of a farmer, farm output/yield and marketing cost. The ten factors examined account for about 72.4% of the total variance in farmers’ income within a given year. The results implies that farm size, farm yield, education level, experience, marketing cost, age, capital invested and use of improved agricultural inputs are factors affecting farmer’s income with significant levels of 1%, 5% and 10%. The researcher’s recommendation is that the government should proceed with provision of sound policy that make capital and credit facilities more accessible to rural farmers and change of mind to agricultural extension staff is highly demanded to serve farmers in maize farming practices and hence resulting into increase of maize farmer’s income.

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