Contribution of agroforestry practices to income and poverty status of households in Northwestern Ethiopia

Abstract Agroforestry practices (AFPs) play a critical role in enhancing income and reducing poverty. This study assessed the effect of AFPs on income and poverty status of farmers in Lay Armachiho (LA), Bahir Dar Zuria (BDR), and Banja districts of Northwestern Ethiopia. 387 households, and 63 key informants were interviewed. Data were analyzed using descriptive statistics, FGT index, Gini coefficient, and multiple linear regression. About 49.35% of the respondents are categorized poor with a poverty gap of 18.93 and a poverty severity level of 9.7. Banja was the greatest with persons below poverty level (59.2%), followed by BDR (49.72%). Agroforestry practices contribute 28.43% to household income. Income from AFPs lowered the poverty ratio, poverty gap index, and poverty severity level of households by 13%, 9%, and 7%, respectively. Income from AFPs lowered the area between the line of equality and the Lorenz curve, as well as the Gini coefficient, by 7.97%. AFPs also lowered the income disparity of households in all districts. Age, AFPs land size, road accessibility, irrigation, AFPs experience, and AFPs types affect households AFPs income positively. Family size and membership to credit institutions had a negative effect. Thus, in order to lower poverty and raise household income, labor productivity, the credit service system, the road and irrigation infrastructure, and AFPs all need to be improved and scaled up.