Benchmarking the living income gap of smallholder farmers in southern Ethiopia

The ongoing discussion about the suitability of income benchmarks for rural farming households persists. Our analysis of Living Income Methodology in the woredas of southern Ethiopia reveals a living income benchmark per adult equivalent per day. Approximately half of this benchmark is allocated to food costs, while other expenses fluctuate depending on market accessibility. By computing living income benchmarks, it becomes possible to compare households at the individual level and evaluate the living income gap. This working paper focuses on benchmarking the living income gap of smallholder farmers in southern Ethiopia.