scholarly journals Potato Market Participation and Its Extents Evidence from Southwest Ethiopia: A Double Hurdle Approach

2021 ◽  
Vol 7 (1) ◽  
pp. 53-63
Author(s):  
Abduselam Faris Abadega
Keyword(s):  
Sex Education ◽  
Smallholder Farmers ◽  
Total Sample ◽  
Farm Income ◽  
Market Participation ◽  
Potato Market ◽  
Factors Affecting ◽  
Econometric Methods ◽  
Double Hurdle ◽  
Land Size

Potato is an important commodity for livelihood in many parts of Ethiopia. Potato producers in Ethiopia face sophisticated marketing challenges, including inadequate access to market and low amount of marketed surpluses due to subsistence-oriented production of potato. The study aimed to identify factors that determine the market participation and its extents. About 136 potato producers were selected randomly from peasant association found in Dedo Districts of Ethiopia. Quantitative and qualitative data were collected from primary sources. Descriptive and econometric methods of data analysis were used to analyze data from the survey. A double hurdle model was applied to investigate factors affecting market participation and its extents. Results of descriptive statistics revealed that out of the total sample producer, 87.5 % of sample household has participated in the potato market. Age, sex, education, land size allocated for potato, and non-farm income were significantly influencing potato market participation. Age, sex, education (years of schooling), non-farm income, active labor and land allocated for potato influenced smallholder farmers level of market participation.

scholarly journals Factors Affecting Loan Repayment Rate from ACSI among Smallholder Farmers: In the case of Habru District, Eastern Amara Regional State, Ethiopia

2021 ◽  
Author(s):  
Andualem Kassegn ◽  
Ebrahim Endris
Keyword(s):  
Smallholder Farmers ◽  
Secondary Data ◽  
Farm Income ◽  
Loan Repayment ◽  
Factors Affecting ◽  
Explanatory Variables ◽  
Multi Stage ◽  
Land Size ◽  
Small Holder ◽  
Road Distance

Abstract This paper aims to examine factors affecting loan repayment rate from Amhara Credit and Saving Institutions (ACSI) among smallholder farmers in Habru district, Ethiopia. In this study, both primary and secondary data sources were used. The study employed a combination of multi-stage purposive and stratified sampling techniques in the selection of 384 borrowers from small-holder farmers in the study area. The Tobit model result found that a total of 10 out of the total 15 explanatory variables involved in the model were found to be statistically significant. According to the result demographic factors (age and household size), socio-economic factors (educational level, land size, livestock size, non-farm income, purpose of borrowing), and institutional factors (road distance, contact with development agents, training received on loan use) were among the factors that influenced loan repayment rate of small-holder borrowers in the study area. Education level, land size, livestock size in TLU, non-farm income, purpose of borrowing, contact with agricultural extension agents, and training received on loan use were found to determine loan repayment rate of borrowers positively and significantly, while age, family size, and road distance were found negatively and significantly determine loan repayment rate in the study area. Therefore, the overall result of this study underlined the great importance of the significant factors to profoundly achieve high repayment rate on borrowed funds from ACSI in the study area.

scholarly journals Determinants of Inorganic Fertilizer Use Intensity on Cereal Crop among Smallholder Farmers: The Case of Toke Kutaye District, West Shewa Zone, Oromia National Regional State, Ethiopia

2022 ◽  
Author(s):  
Aman Dassa ◽  
Abera Ifa ◽  
Efa Gobena
Keyword(s):  
Inorganic Fertilizer ◽  
Farm Income ◽  
Hurdle Model ◽  
Cereal Crop ◽  
Fertilizer Use ◽  
Explanatory Variables ◽  
Double Hurdle Model ◽  
Small Holders ◽  
Double Hurdle ◽  
Land Size

Abstract The study was aimed to analysis determinants of inorganic fertilizer use intensity on cereal crops among small holders in Toke Kutaye District, West Shewa Zone, Ethiopia. Correctional data were collected from 156 respondents using two stage random sampling methods. Data analyses were carried out using descriptive statistics and Double hurdle model. Result of the first hurdle reveals that out of twelve explanatory variables Sex ,Education, Off/non-farm income, Land size and Improved seed were determine positively whereas Age and Distance from nearest market determine small holders use of inorganic fertilizer negatively. The result of second stage of double hurdle model indicate that, out of twelve explanatory variables Sex, family size and Land size were positively affect extent (intensity) of inorganic fertilizer use whereas Age and Distance of household from nearest market determine use intensity negatively. Therefore, these results implied that there is a room to increase inorganic fertilizer use intensity on cereal crop productions. Hence, Farmers capacity to purchase this input beginning from lower income farmers to model farmers should be acknowledged; and should be designed the means to address those who have no ability to use inorganic fertilizer in their own farm through diverse development interventions.

scholarly journals The impact of social grant dependency on smallholder maize producers’ market participation in South Africa: Application of the double-hurdle model

2017 ◽  
Vol 20 (1) ◽  
Author(s):  
Sikhulumile Sinyolo ◽  
Maxwell Mudhara ◽  
Edilegnaw Wale
Keyword(s):  
South Africa ◽  
Rural Areas ◽  
Smallholder Farmers ◽  
Hurdle Model ◽  
Market Participation ◽  
Double Hurdle Model ◽  
Social Grants ◽  
Double Hurdle ◽  
Social Grant ◽  
The Impact

Background: Social grants have become an increasingly popular means of improving the welfare of poor households in South Africa and beyond. While the goals of these transfers are to alleviate current poverty as well as to improve human capital capacity, they also have unintended effects, positive or negative, on beneficiary households. A question that has not been adequately addressed in the literature is the role that social grants play in the efforts to commercialise smallholder farming.Aim: The aim of this study was to examine the impact of social grant dependency on the incentives of smallholder maize producers to participate in the market.Setting: The study was done in the rural areas of four districts (Harry Gwala, Umzinyathi, Umkhanyakude and Uthukela) in the KwaZulu-Natal province, South Africa.Methods: The study adopted a quantitative research design. A total of 984 households were randomly selected from the four districts, of which 774 had planted maize in the previous season. The analysis was done on the 774 farmers who had planted maize. The double-hurdle model was used for statistical analysis.Results: The results show a negative association between social grant dependency and market participation, suggesting that social grant-dependent households are more subsistent, producing less marketable surplus. Moreover, households with access to social grants sold less quantities of maize in the market, indicating reduced selling incentives.Conclusion: The study indicates that social grants reduce the incentives of smallholder farmers to commercialise their production activities. The results suggest that, while policies aimed at reducing transaction costs would increase smallholder market participation, attention should be paid on how to reduce social grants’ dis-incentive effects. To reduce spill over effects to unintended household members, the study recommends offering part of the grant as ‘in-kind support’, which is specific to the intended individual beneficiary.

scholarly journals Production Efficiency of Sorghum: The Case of Smallholder Farmers in Kafta-Humera District Tigray Ethiopia

2021 ◽  
pp. 46-61
Author(s):  
Tewoderos Meleaku ◽  
Degye Goshu ◽  
Bosena Tegegne
Keyword(s):  
Production Efficiency ◽  
New Technologies ◽  
Smallholder Farmers ◽  
Allocative Efficiency ◽  
Sampling Technique ◽  
Farm Income ◽  
Stochastic Production Frontier ◽  
Resource Base ◽  
Factors Affecting ◽  
Sorghum Production

Efficiency is an important factor for increasing productivity which leads to increase market output to achieve the goal of food security. In economics where resources are scarce and opportunities to use new technologies are limited, increasing efficiency remains the most reasonable means to raise productivity without necessarily developing new technologies or increasing the resource base. So, this study aimed to investigate level of production efficiency, factors affecting production inefficiency of sorghum small holder farmers in Kafta-humera district of Tigray Ethiopia. A two stage sampling technique was used to select 289 sample farmers who were interviewed using a semi- structured questionnaire to obtain data pertaining to sorghum production during the year 2016/2017.Stochastic production frontier model was used to identify production efficiency levels, where as Tobit models was used to estimate factors affecting production efficiency levels. Accordingly, the mean technical, allocative and economic efficiencies were 78.01%, 65.21% and 39.91% respectively. This implies that output can be increased by 21.99% or cost can be reduced by 34.79% with the existing level of technology and resources. Input variables such as land, labor, tractor plow power, chemicals, DAP and Urea fertilizers positively affects production of sorghum. The discrepancy ratio (γ) implied that about 91.91% of the variation in sorghum production was attributed to technical inefficiency effects. Tobit model revealed that age, education, non-farm income, credit, extension service and training positively and significantly affected technical efficiency while age square and total livestock holding had negatively and significantly affected. Additionally, age square, education and frequency of farm visit positively and significantly affected allocative efficiency, while age, non-farm income, credit and extension contact have a negative and significant affect. Economic efficiency was positively and significantly affected by age, education, non-farm income, credit, extension contact and frequencies of farm visit but negatively affected by age square. These indicate that there is a room to increase in production efficiency of sorghum in the study area. Therefore, government authorities and other concerned bodies should take into consideration the above mentioned demographic, socioeconomic and institutional factors to increase efficiency of sorghum.

scholarly journals Smallholders Beef Cattle Commercialization in Southwest Ethiopia

2022 ◽  
Author(s):  
Getahun Kassa ◽  
Tegegn Fantahun ◽  
Desalegn Anshiso
Keyword(s):  
Beef Cattle ◽  
Smallholder Farmers ◽  
Selection Model ◽  
Sales Volume ◽  
Market Participation ◽  
Southwest Ethiopia ◽  
Factors Affecting ◽  
Health Infrastructure ◽  
Step Selection ◽  
Cattle Market

Abstract In this study, the beef cattle markets in Southwest Ethiopia are analyzed based on a survey of 172 producers. The first part emphasized the characterization and commercialization of the beef cattle market in the study area. The second part is dedicated to identifying the factors affecting households’ participation in the beef cattle market using the Heckman two-step selection model. In the findings, the beef cattle market is characterized by the dominance of few traders, asymmetric information, lack of contract enforcement, lack of transparency among market actors, and poorly developed market infrastructure. There is very low net commercial off-take rate of cattle for smallholder farmers in the study area. The result from the Heckman two-step selection model revealed that having positive stock of cattle, better access to extension service & feed, and a better level of literacy enhanced market participation and sales volume. On the contrary, market participation and sales volume were negatively affected by cattle keeper’s age, non-livestock income, and poor road and health infrastructure. The study suggested that improving the market and health infrastructure, providing capacity building for producers, and improving access to feed could enhance the intensity of smallholder beef cattle market participation.

scholarly journals A Double Hurdle Estimation of Sales Decisions by Smallholder Beef Cattle Farmers in Eswatini

2019 ◽  
Vol 11 (19) ◽  
pp. 5185 ◽  
Author(s):  
Sicelo Ignatius Dlamini ◽  
Wen-Chi Huang
Keyword(s):  
Beef Cattle ◽  
Marital Status ◽  
Herd Size ◽  
Farm Income ◽  
Market Participation ◽  
Cross Sectional ◽  
Double Hurdle ◽  
Marketable Surplus ◽  
Market Distance ◽  
Market Channel

Beef cattle farmers are in an ideal position to advance their income through marketing; however, the subsector is characterized by low market participation. Wealth preservation and prestige from cattle accumulation outweigh market incentives, thereby jeopardizing the integration of farmers into organized market systems. Therefore, the study was set to examine the determinants of farmers’ sales decisions in cattle marketing. Understanding determinants of sales decisions is an indispensable base for establishing sustainable development policy frameworks that maximize rural economic growth. Descriptive statistics and a double-hurdle model were applied on cross-sectional data collected from 397 farmers through personal interviews aided by a structured questionnaire. Herd size (74.1%), ecological zone (32.4%), slaughters (22.1%), pregnant cows (18.2%), experience (15.0%) and breed type (11.4%) revealed statistically significant effects on the probability of market participation. The key determinants of the level of market participation (p < 0.01) included extension, married marital status, pasture availability, cows, heifers, market distance, market information and market channel 2 (individual). Education, experience, non-farm income, expenses and laborers were significant at p < 0.05. Widowed marital status and market channel 1 (processor) were found to be significant at p < 0.1. Extension adjustments and institutionalization of market linkages are recommended to assist farmers in increasing marketable surplus.

scholarly journals Commercialization of Teff production in West North Ethiopia

2021 ◽  
Author(s):  
Habtamu Mossie ◽  
Dubale Abate ◽  
Eden Kasse
Keyword(s):  
Market Orientation ◽  
Market Access ◽  
Smallholder Farmers ◽  
Sampling Procedure ◽  
Primary Data ◽  
Farm Income ◽  
Service Market ◽  
Agronomic Practices ◽  
Market Experience ◽  
Land Size

Abstract Background: Teff is only cereal crop Ethiopia’s in terms of production, acreage, and the number of farm holdings. It is one of the staples crops produced in the study area. However, the farm productivity, commercialization and level of intensity per hectare is low compared to the other cereals , Despite, smallholder farmers are not enough to participate in the teff market so the commercialization level is very low due to different factors. so, the study aimed to analyze determinants of smallholder farmer’s teff commercialization in west north, Ethiopia.Methods; A three-stage sampling procedure was used to take the sample respondents, 190 smallholder teff producers were selected to collect primary data through semi-structures questionnaires. Combinations of data analysis methods such as descriptive statistics and econometrics model (double hurdle) were used.Results: The average level of teff commercialization index of sampled Teff producers in the study area was 11.97%. The model result showed that the variables like age, gender, education, land size, variety, Teff market experience, distance to the nearest market, off-farm income, and credit were significantly affecting the market orientation of Teff production. Therefore, improving households’ market access, extension service, market orientation, education, and productivity of land (best agronomic practices) would enhance the commercialization level of smallholder Teff producers.

scholarly journals Commercialization of Smallholder Pulse Producers in East Gojjam Zone, Ethiopia

2019 ◽  
Vol 8 (4) ◽  
pp. 84
Author(s):  
Assefa Tilahun ◽  
Jema Haji ◽  
Lemma Zemedu ◽  
Dawit Alemu
Keyword(s):  
Smallholder Farmers ◽  
Farming System ◽  
Farm Households ◽  
Market Information ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Commercial Farming ◽  
New Varieties ◽  
Livestock Feeding ◽  
Land Size

This study examines pulse producers&rsquo; commercialization using a cross-sectional data obtained from 385 randomly and proportionately selected sampled households from East Gojjam zone, Amhara National Regional State of Ethiopia. Data were analyzed using descriptive statistics and econometric model to characterize sample households and identify factors affecting pulse output commercialization. The mean commercial index for the sample households was 0.345 which indicates that on average a household sold 34.5% of his/her total pulse produce. As a result, farm households&rsquo; output commercialization levels fall in semi-commercial farming system. Two limit Tobit model result indicated that farm households&rsquo; crop output commercialization was positively and significantly influenced by access to improved seed, cooperative membership, land size, access to market information and pulse yield and was negatively and significantly influenced by family size and livestock owned. Based on the findings, improved seed/new varieties should be released and accessed to smallholder farmers, deliver market information timely, land owned allocation should be intensified so that smallholder producers can increase their crop output commercialization, strengthening the existing farmers&rsquo; cooperatives and finally cut and carry livestock feeding system should be practiced in order to manage farm land properly.

scholarly journals Application of Probit Analysis in the Decision of Youths to Participate in Vegetable Production

2020 ◽  
Vol 1 (5) ◽  
pp. 1-7
Author(s):  
Nsikak-Abasi Etim ◽  
Dorothy Thompson
Keyword(s):  
Agricultural Production ◽  
Smallholder Farmers ◽  
National Development ◽  
Probit Analysis ◽  
Primary Data ◽  
Farm Income ◽  
Small Scale ◽  
Vegetable Production ◽  
Probit Regression ◽  
Factors Affecting

Youths are successor farming generation and therefore the future of food security. At present, they constitute about 60% of Nigeria’s population and have over the years contributed significantly to national development. Unfortunately, the present environment makes it  difficult to explore their full potentials in  production through participation in agriculture. The ageing smallholder farmers are less likely to increase capacity needed to sustainably expand agricultural production. There is therefore a pressing need to engage the youth in ways that they can see a promising future in agriculture as well as influence them to build capacity through effective involvement in agricultural production. Several factors however, have continued to hinder capacity building and effective  participation of youths in vegetable farming. An empirical study was conducted to estimate the factors affecting the willingness  of youth to  participate in small scale waterleaf production. The representative waterleaf producers were selected using the multi stage sampling procedures.With the aid of questionnaire, primary data were obtained from 100 farmers. Univariate probit regression model was used to analyze the data. Results of analysis indicated that the most critical factors affecting the participation of youths in waterleaf production were age, educational qualification, size of household members, and farm income. Results indicated that youths who have acquired some form of education were more willing to be involved in waterleaf production. Findings further indicated that youth in families with higher income from farming activities were more willing to participate in waterleaf production.

scholarly journals Determinants of Maize Commercialization among Smallholder Farmers: The Case of Nunu Kumba District, East Wollega Zone, Oromia Regional State, Western Ethiopia

2019 ◽  
pp. 1-8
Author(s):  
Mabiratu Dangia ◽  
Prem Kumar Dara ◽  
Gersam Daniel
Keyword(s):  
Smallholder Farmers ◽  
Household Head ◽  
Institutional Arrangement ◽  
Ordered Logit ◽  
Market Participation ◽  
Cross Sectional ◽  
Factors Affecting ◽  
Household Level ◽  
Speed Up ◽  
Infrastructure Strengthening

This study were aimed at analyzemaize producer’s household level of market participation, determinants of maize producer household’s degree of market participationand determinants of maize producer households level of commercialization in the study area. The study used a cross sectional data collected from 345 randomly selected households from four kebeles through semi-structured household questionnaires. Tobit model was used to analyze determinants of level of market participation of maize producers and ordered logit model was used to assess the factors affecting household maize commercialization.Based on Tobit result family size and distance from nearest market affected market participation of maize producers significantly and negatively, and land allocated for maize, access to improved seed, raw planting, amount of credit received and membership of cooperative affected market participation of maize producers significantly and positively. The result of ordered logit revealed that Marital status, Household size, distance from nearest market and age of household head significantly and negatively affected level of commercialization. Whereas, Household labor supply, access to improved seed, amount of fertilizer, credit amount, and household head education class positively and significantly affected level of commercialization. Policies that give more emphasis to family planning, improving and strengthening rural infrastructure, strengthening institutional arrangement like cooperatives have paramount implications to speed up the move from subsistence and semi commercial towards commercial oriented production.

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