Cash income generation and expenditure allocation characteristics in smallholder farming system: Case study of Mufindi District
Yona, G|Hella, J.P /

A study to establish cash income generation and expenditure allocation characteristics in smallholder farming system was conducted in four purpos~~dty sampled villages in Mufindi district - Iringa Region. The objectives of the study were (I) identification of cash income generation activities of smaliholder farmers, (ii) categorise expenditure allocation in d'fferent household enterprises in sample villages and (ul) to establish the implication ofincome allocation priorities on household economy and environment. The results indicated that major sources of cash income for smallholder farmers were from; ti) non-farm activities such as sale of local beer and hond-crafi activities, (ii) sales of crops. and (iii) sale of livestock. On expenditure allocation, the study shows that high proportion of income is allocated to family expenses such as. food purchase, education and health services. Proportionately little income was allocated to finance farni activities and negligible income for purchase of farm inputs like fertilisers and pesticides. Final)', the study conclude that, despite the importance of agriculture in smallholder farmer's eco'ioaiy the current evidence indicates declining interest to invest income generated from agriculture and related activities into agricultural production.