This study aims to analyze the determinants of household income diversification and the share of income sources
to total household income among the rural farm households in southwest Nigeria. The study drew a sample of 411
rural farm households through a multi-stage sampling technique from three states in southwest Nigeria and the
data obtained were analyzed using the Herfindal index and Tobit regressions. Results indicate that the level of
income diversification among rural farm households in southwest Nigeria depicted by inverse of Herfindal index
was 2.82. An average rural farm household in southwest Nigeria had its members involving in three income
generating activities with two farming activities and one non-farm job. Ninety five percent of rural farm
households had their members involving in non-farm activities with non-farm self-employment contributing the
largest share of non-farm income. Education, experience in any non-farm activity and distance to urban centre
were the major determinants of income shares from different sources of non-farm activities while increase in the
size of household, per capita landholding and per capita animal wealth significantly increased the income
diversification of the rural farm households in southwest Nigeria. Implication is drawn for provision of enabling
environment for the establishment of more non-farm self employment jobs.