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The study focused on the share of buffalo in generating income for small farm household, and its relation to crossing the poverty line. Such farm category represents the majority of farmers in the countries raising buffaloes in Asia and Africa. The small farmers in Egypt are the holders of less than 2 ha. Such category represents about 92% of the total agricultural holders. Even though, they hold only less than 50% of agricultural area, 72% of cattle and 87% of buffaloes. 10% of buffalo holders are without agricultural land holding and 14% of cattle holders are also without land holding. The study used a farm sample survey of 120 small farms in rural Egypt to achieve its objectives. The analysis of the sample survey data showed that the average land holding of the small farmer is less than 1 ha and the average household size is 5 persons. The average buffaloes stock on farm is almost one head and its followers. The main feed source is the cultivated winter green fodder " Berseem, which occupies on the average about 25% of the farm land. While 62% of the farm managers are fulltime males 20% are fulltime females. Whereas, 77% of wives share in farm labor 56% of them share in livestock operations. The estimated total annual income of small farm's household is about US$ 4,170. Livestock generates more than one third of this income, poultry share is 1%, and crop income share is only 18%. i.e., around 52% of the small farm income is generated by agricultural enterprises .The rest, i.e. 48% is from off farm income. The sources of off farm income are, 3% from off farm agricultural work, 40% regular salaries, 5% from remittance of the farmer's work abroad. The study estimated the daily per capita income per household as US$ 2.3, which just passes the poverty line. Milking buffalo has a significant role in alleviation of poverty that might face small farm households. Without milking buffaloes holding on farm the household would suffer from being significantly below the poverty borders. To raise milk productivity is the proper approach to increase the income generated by buffalo, once there is no room for horizontal expansion. It requires an (A.I.) program using imported semen of potential high milk yield from e.g. Italy. Such program should be associated with reform of the institutional framework in the Egyptian village and establishment of an efficient marketing system, modern animals' health care and a non conventional feed regime.


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