Impact of Off-Farm Income on Household Food Security and Agricultural Investment in Kano State: An Empirical Investigation

Off-farm income diversification has been posited as both a risk management mechanism and a source of agricultural investment capital for smallholder farming households. However, empirical evidence on whether off-farm income stimulates or substitutes for on-farm investment in Nigerian contexts remains contested. This study investigated the impact of off-farm income on household food security and agricultural investment in Kano State using data from 220 farming households selected through a three-stage sampling process. Off-farm income participation was modelled using an endogenous switching regression to correct for selection bias. Household food security was measured using the Household Food Insecurity Access Scale, and agricultural investment was captured by expenditure on purchased inputs and equipment. Results showed that off-farm income participation significantly improved household food security scores and was positively associated with fertiliser expenditure, supporting a capital-enabled investment pathway. However, households whose off-farm activities demanded extended absences showed reduced cropped area, consistent with a labour trade-off effect. The study contributes to filling the empirical gap on off-farm-on-farm investment linkages in semi-arid northern Nigeria, providing nuance for rural finance and income diversification policies. Facilitating income diversification while strengthening farm mechanisation access is recommended to optimise the agricultural investment effects of off-farm engagement. Keywords: off-farm income, food security, agricultural investment, Kano State, endogenous switching regression.