Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia
Bahilu Ejeta,
Daniel Masresha
Issue:
Volume 9, Issue 6, December 2020
Pages:
153-162
Received:
5 October 2020
Accepted:
17 October 2020
Published:
30 October 2020
Abstract: Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.
Abstract: Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed t...
Show More
Determinants of Smallholder Commercialization of Tomato Crop in Siltie Zone, Southern Ethiopia
Bahilu Ejeta,
Derebe Ermias,
Gosaye Ashetu
Issue:
Volume 9, Issue 6, December 2020
Pages:
163-173
Received:
22 September 2020
Accepted:
12 October 2020
Published:
4 November 2020
Abstract: The productivity of agricultural resources was very low; especially in the developing world where production is common on fragile lands and characterized by small-scale subsistence farming. Commercialization of agriculture provides farm households with a means to alleviate poverty and food insecurity by generating incomes in the rural areas. This paper aims to identify factors affecting commercialization of tomato crop by smallholder farmers in Siltie Zone, Southern Ethiopia. Both structured and unstructured questionnaires and Focus Group Discussion were used to collect data from 175 respondents randomly selected from designated locations in the study area. Descriptive statistics and heckman two stage models were used to analyze the collected data. According to first stage Heckman selection estimation (probit regression) model result, Education, frequency of extension contact, distance to market, market agreement and lagged price played a significant role in smallholder commercialization decision. In the second-stage of Heckman selection estimation family size, education, land allocated for tomato production, frequency of agricultural extension contact, distance to nearest market, productivity, lagged price and inverse mill’s ratio were significantly affect level of tomato commercialization. Thus, the study recommends the need for designing appropriate intervention mechanisms focusing on the abovementioned factors so as to improve the performance of tomato crop commercialization.
Abstract: The productivity of agricultural resources was very low; especially in the developing world where production is common on fragile lands and characterized by small-scale subsistence farming. Commercialization of agriculture provides farm households with a means to alleviate poverty and food insecurity by generating incomes in the rural areas. This p...
Show More
