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This study aims to examine the effect of climate variability on smallholders’ crop income and the determinants of indigenous adaptation strategies in three districts (Mieso, Goba-koricha and Doba) of West Hararghe Zone of Ethiopia. These three districts are located in high-moisture-stress areas because of crop season rainfall variability.

Primary data collected from 400 sample households were used for identifying factors that affect households’ crop income. The study used ordinary least square (OLS) regression to examine the effect of climate variability. Given this, binary logit model was used to assess smallholders’ adaptation behavior. Finally, the study used multinomial logistic regression to identify determinants of smallholders’ indigenous adaptation strategies.

The OLS regression result shows that variability in rainfall during the cropping season has a significant and negative effect, and cropland and livestock level have a positive effect on farmers’ crop income. The multinomial logistic regression result reveals that households adopt hybrid crops (maize and sorghum) and dry-sowing adaptation strategies if there is shortage during the cropping season. Variability in rainfall at the time of sowing and the growing are main factors in the area’s crop production. Cropland increment has positive and significant effect on employing each adaptation strategy. The probability of adopting techniques such as water harvesting, hybrid seeds and dry sowing significantly reduces if a household has a large livestock.

The three districts are remote and accessibility is difficult without due support from institutions. Thus, this study was conducted on the basis of the primary data collected by the researchers after securing grant from Swedish International Development Agency (SIDA).