Poverty incidence in Nigeria is higher among the rural-folks, that is, households that rely mainly on agricultural income. Income diversification is therefore seen as a way to secure income and to increase welfare of the farm households. This study investigated determinants of income diversification among farm households in Niger State, Nigeria. The study utilized data obtained from administering questionnaire to 287 farming households. Data were analyzed using descriptive statistics, and Tobit regression model. The study revealed that mean age, household size, and farm size of the respondents were 42, 7, and 2.82 respectively. A total of 46.4% of the respondents had no formal education and only 12.9% had attained formal education up to the tertiary level. Majority that is 94.8% had no access to credit. Results of the Tobit regression revealed that farm size, age, level of education, farm income, non-farm income, credit use, livestock ownership, household size, poverty status, and occupation were the significant determinants of income diversification in the study area. The study recommends increase in the level of literacy among rural farm households. The impact of institutional credit on employments has been shown which ought to require taking comprehension of this basic by the approach system of the State as a vital advancement issue at the grass root. And in addition, government should re-energize and re-invigorate the extension service division of the State Ministry of Agriculture through capacity building, training and provision of necessary equipment to carry out its functions since they are the only group that understands the farmers’ needs and idiosyncrasies.