Volume 9, Issue 6, December 2020, Page: 153-162
Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia
Bahilu Ejeta, Department of Agricultural Economics, Werabe University, Werabe, Ethiopia
Daniel Masresha, Department of Agricultural Economics, Wellega University, Nekemte, Ethiopia
Received: Oct. 5, 2020;       Accepted: Oct. 17, 2020;       Published: Oct. 30, 2020
DOI: 10.11648/j.aff.20200906.11      View  52      Downloads  24
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.
Heckman’s Two Step, Red Bean, Smallholder, Commercialization, Market Participation
To cite this article
Bahilu Ejeta, Daniel Masresha, Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia, Agriculture, Forestry and Fisheries. Vol. 9, No. 6, 2020, pp. 153-162. doi: 10.11648/j.aff.20200906.11
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