Step 2 – Measuring: Calculate the living income gap

Several methods can be used to measure household income components, including farm and household recall surveys, farmer record-keeping or field books, focus group discussions, expert interviews, and the use of secondary data combined with extrapolation or modelling. In practice, a pragmatic, mixed-method approach is often most effective, combining different tools in a modular way to capture on-farm, off-farm, and other income streams. 

The level of methodological rigour should be aligned with the intended use. Less resource-intensive approaches may be sufficient to generate directional insights into the size of the living income gap and priority areas for action. More robust and granular approaches are required when tracking progress over time or assessing impact. Key design considerations include available budget, time constraints, access to households, the quality of existing data, and the nature of relationships with target communities. 

Measuring household income in smallholder contexts requires careful attention to operational realities. Income levels and cost structures vary significantly across contexts, shaped by farming systems, environmental conditions, and socio-economic factors. Smallholder households are also exposed to market and climate variability, which can affect income stability. Wherever possible, recognised tools and methodologies should be used to ensure consistency and enable long-term tracking of measurable impact.