1. Analysis of the pluriactivity of senegalese rural households Ya Cor NDIONE PhD Candidate Université Cheikh Anta Diop Dakar Initiative prospective agricole rurale www.ipar.sn yacorndione@ipar.sn 2nd International Conference on Sustainable Development in Africa Dakar, Senegal, 26-27 November 2015

2. Presentation outline  Context_Motivations  Research questions/Objectives  Results and discussions  Conclusion and Policy Implications  Key findings  Methodological framework

3. Context_ Motivations classical approaches of agricultural and rural development :  develop viable farms large enough to provide adequate incomes to rural households persistent poverty of rural populations Pluriactivity of rural households : emerging features of the rural world  nonfarm activities are ever-increasing like a continuous process of “depeasantization” which involves reorientating rural economy far from agriculture (Bryceson, 1999). Evidence of higher nonfarm incomes : Over time, nonfarm activities have experienced a rapid development, contributing to both rural employment and income generation (Haggblade and al, 2009). Income improvement via pluriactivity : solution to rural poverty  helps reduce poverty and contributes to balance income distribution (De Janvry and Sadoulet, 2001). Diversification stands as an essential part of agricultural and rural policies (Tocco and al, 2013).

4. Context_ Motivations Pluriactive households do not always have the best socioeconomic situation.  McCoy and Filson (1996) assessed the effects of off-farm labor on the life quality perception of West Ontario rurals. Low satisfaction levels and lack of leisure time have been the most frequent issues for the latter Pluriactives households : a group that can potentially leave agriculture  Part-time farmers, compared to their counterparts, have a lower probability to continue farm activities (Weiss, 1999)  According to Kimhi (2000), part time agriculture is like a channel through which rural labor force gets its way out of agriculture. Rural pluriactivity can prevent the natural process of structural change in agricultural sector

5. Context_ Motivations Rural pluriactivity, determinants and role:  Widely studied in developed countries, in Asian and in Latin America countries  What about rural African economies ? African context: important to understand the behavior of pluriactivity  Many households seem to run into an invisible wall in the transition process, as they have difficulties earning enough income through diversification  The African case of income diversification suggests a more ambiguous image: Diversification can reinforce class hierarchy as those who get higher incomes redirect part of their agricultural capital to more gainful non farm activities (Brycesson, 2002)

6. Context_ Motivations Senegalese agriculture is struggling to provide an efficient labor market to rural households  70% of active labour force works in agriculture  Senegalese rural areas: problem of underemployment (rate of underemployment of 32.0%), with rainfed agriculture, risks related to production and climatic hazards  Increasing rural households orientation towards rural non-farm activities In Senegal, despite the growing importance of rural pluriactivity, little is actually known about its determinants and its role in income generation for rural households Pluriactivity at the household level : pluriactive household as a household with more than one income-generating activity (Ellis, 2000)

7. Research questions/Objectives Understand rural pluriactivity - its causes and its effects for rural households in three different agro-ecological zones of Senegal 1.What are the determinants of pluriactivity choice of households? 2. What is the magnitude and what is the signal sent by the pluriactivity behavior of Senegalese rural households? 3. Finally what are the effects of that pluriactivity on households particularly, on their incomes?

8. Methodological framework Agricultural Household Model as theoretical model  developed by Singh, Squire and Strauss (1986), has been frequently used to study the allocation of rural labor force  allows to understand the behavior of rural labor force by integrating production decisions (agricultural supply and demand factors of production) and household decisions in terms of consumption and labor supply.  The model is based on the assumption that households need to maximize their utility, which is a function of consumption and leisure and is subject to time and budget constraints.

9. Methodological framework

10. Study areas

11. Data collection Agro-ecological zones Socio-economic characteristics Data collection: EJMAO 2013 VillagesHouseholds Groundnut Bassin Rainfed agriculture High population density underemployment Migration of young people and women Household surveys Semi-structured interviews Focus groups. 19700 Niayes Region Better farming conditions more nonfarm employment opportunities home to migrant farmers coming from rainfed areas Household surveys Semi-structured interviews Focus groups. 13400 Senegal River Delta Benefited from important public investments in water control and in development of irrigated agriculture home to migrants farmer coming from rainfed areas Household surveys Semi-structured interviews Focus groups. 13400 Total 451 500

12. 12 Categories of households by Agro ecological zones Results and discussions

13. 13 VARIABLESPluri_hh household_size0.243*** age_hhead0.00456 Sex_ hhead-0.133 N_Youth0.135*** hh_with_migrant-0.0365 N_Oc_worker_-0.253*** N_Less10years-0.266*** N_noeduc-0.0485* N_ inf_edu_-0.203*** Niayes Region1.172*** Senegal River Delta0.651** hh_withland0.614** availand_hh-0.0143 acqui_mod0.352** nat_ter0.391* rainfed_crop0.0592 peanut_prod-0.0309 cereal_prod-1.011*** fruit_prod-0.520** sharerev_AGRhh-0.978*** Constant-0.308 Observations1,492 *** p<0.01, ** p<0.05, * p<0.1 logistic results : Determinants of Senegalese rural households pluriactivity

14. Results and discussions different models of pluriactivity by agro-ecological zones In rain-fed area : agricultural constraints push farm agricultural households to pluriactivity  pluriactivity due to low agricultural productivity, low farm incomes and persistence of underemployment  households combination of farm and non-farm activities facilitated by the fact these activities do not have the same exercise periods  Given the insufficiency of farm land, households prefer to turn to non- agricultural activities  Following a drought period some households try out non-agricultural activities. This conjectural situation may lead to a stable situation of pluriactivity

15. Results and discussions Different models of pluriactivity by agro-ecological zones The irrigated areas: agro climatic and economic conditions create a favorable environment for pluriactivity  Importance of pluriactivity due to the development of agriculture  Pluriactivity in irrigated areas favored by existing opportunities. These opportunities also explain the passage of exclusively non-farm households or exclusively farm households to pluriactive households  Households increase and diversify their incomes and can alleviate credit constraints.  This combination of activities is encouraged by the possibility of sharecropping

16. Results and discussions Impact of pluriactivity on households income : Gini Decomposition by Income Source SourceSkGkRkShare% Change inc_agr 0.47690.60520.79010.4369-0.0400 inc_liv 0.01720.97220.50070.0160-0.0012 inc_pech 0.05070.97420.83670.07910.0285 inc_agr_wage 0.01250.98520.49600.0117-0.0008 inc_AGR 0.55720.60910.83610.5437-0.0134 inc_nonagr 0.11020.86590.59370.1085-0.0017 inc_nonagr_wage 0.33270.73030.74710.34780.0151 inc_NONAGR 0.44280.67340.79860.45630.0134 Total income 0.5219 The distribution of income in the absence of non-farm income is more unequal : nonfarm income decreases income inequality among households. Farm income and non-farm income are substitutes, as the highest Gini coefficient of non- farm income corresponds to the lowest global income

17. Key findings Analyzing pluriactivity of Senegalese rural households allowed to understand the underpinnings of this behavior:  Pluriactivity is essential for the survival of Senegalese rural households : Pluriactivity’ s net effect is to lower disparities in income distribution among rural households  Pluriactivity does not only develop in areas with disadvantaged agriculture: In rainfed areas a “survival pluriactivity” ; in irrigated areas a “ pluriactivity of opportunity”.  To increase rural household income the choice is on non-agricultural activities and not on increasing production capacities for various reasons (lack of land, the moral hazard problem with external labor, access to funding)  Rural populations in their pluriactivity strategy do not intend to abandon agriculture  Some poor households may be prevented from adopting pluriactivity as a strategy due to high entry barriers for nonfarm activities.

18. Conclusion and Policy implications Rural employment programs must take into account agroecological differences Nonfarm rural activities are important to Senegalese rural households. Despite positive general trends, its level of development is low. At present, the non-farm sector in Senegal is characterized by a high level of self-employment, the supply of small services, and precariousness of employment. Developing agricultural value chains may be a viable option for policymakers to improve the potential for job creation and income generation Smart policies that lower existing barriers to entry to gainful agricultural and non agricultural activities: projections about the likely speed of land/farm consolidation should be revised downwards. Also adapted microfinance strategies should be targeted to enable to overcome entry barriers.

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