: Cocoa Farming is a major income earner of the majority of the farmers in the areas of study. Past studies have revealed that these farmers are threatened by various types of production risk, such as drought, inconsistent production, low yield, pest and disease infestation, age of cocoa tree, natural disasters among others. This study examines the production risk factors influencing income generation on cocoa farming as well as the degree of effect of these production-risk factors on cocoa livelihood. A multi-stage sampling techniques was used to select 160 respondents. Method of data analysis used are descriptive statistics and multiple regression analysis. Descriptive analysis results revealed that the with mean of age of cocoa farmers in the area of study was 39 years. The study deduced that this is an active age that can be used to enhanced cocoa production, adoption of new technology and good agricultural practices. The study identified various level of production risk factors among which are Drought, Price Spike and Inconsistence in productions as the dominant ones. The study revealed that 96.3% of the cocoa farmers were aware and 75% of such farmers indicated the effect of these risks on their cocoa production with various level of degree. Multiple regression analysis results deduced the robustness of the independent variables considered in the equation. The result of the diagnostic revealed the multiple coefficients of determination of the dependent variable of income by the independent variables of 52%. Indicating that 52% of the explanatory variables explained the dependent variable, however, the 48% unexplained variables might be due to reason beyond the scope of this study and which might be considered in the future study. Based on the estimated results, 8 variables are found to have significant influences out of 14 variables considered in the equation to have influenced on cocoa farmers’ income. The study deduced that the dominant production risks of drought, price spikes and production inconsistences has mean effect of 66.7% on cocoa production in the study areas. This is significant; hence the study recommends the risk management strategies of crop insurance, access to timely credit facilities, training on the risk management strategies, efficient marketing policy delivery and government to be consistence on their policy on commodities particularly on cocoa marketing and grading and this study found out that these are the most dominant production risk factors confronting cocoa farmers from making commeasurable income from cocoa farming..