Full Text Article. Also available at: http://www.isca.in/IJSS/Archive/v3/i11/2.ISCA-IRJSS-2014-122.phpThe grant aim of this study was to assess the various factors that determine the level of small scale household farmers’ off farm income amongst grape farmers in Dodoma. The study applied the Tobit econometric technique in investigating the factors that may explain the households’ decision on whether or not to participate in various off-farm income generating activities, using household data collected from grape farmers in Dodoma. Due to its failure in specification tests, the study employed the use of Censored Least Absolute Deviation estimator (CLAD) which is robust to heteroscedasticity and nonmorality specification problems facing the normal maximum likelihood estimations such as that of Tobit. The results indicated that the level of income amongst small scale households’ farmers from various off-farm income generating activities is significantly influenced by asset endowments where by financial assets, human capital assets and physical assets are the main assets influencing the decision where by human capital assets were the main determinants. The study went further into proposing policy interventions which includes awareness campaign for off-farm work, revisiting land ownership policies, provision of loans to farmers, availability of sustainable markets, effective implementation of Kilimo Kwanza policy and improved rural infrastructure.