Rural Poverty Dynamics and Level a case study at Yetmen

The region has ample natural resources especially in the agriculture sector which may be sufficient to supply food for the nation as a whole. However, based on the computed poverty line birr 2622 using consumption of basic need approach, 68% of the households is below the poverty line. A 10% change on poverty line showed that there is greater number of the poor just below the poverty line. From the binomial logit; we found that age, education level of the head, household size, input cost, credit, experience are significant to affect the state of poverty. The multinomial logit model indicates that age is the main factor for the household to move from non-poor to poor and sex is a significant factor for being persistently poor. Cost of input, household size and sex are the cause for moving from poor to non-poor. Greater portion of the poor are condensed just below the poverty line. Similarly, many of them are trenseite poor. This indicates that they need some additional income to smooth their consumption; therefore, in the area there should be some program like food for work or they should be engaged in non-farm activities.