IDEAS home Printed from https://ideas.repec.org/p/ags/cmpart/265573.html
   My bibliography  Save this paper

Analysis Of Determinants Of Adoption Of Organic Fertilizer And Its Effect On Smallholder Farmers Income In Shashemene District, Ethiopia

Author

Listed:
  • Dube, Biru Gelgo

Abstract

Ethiopia’s agricultural sector accounts to 40 percent of national Gross Domestic Product. This shows that the sector is important in improving the livelihoods of the bulk of the population. Despite its importance, the agricultural sector in Ethiopia is characterized by low productivity. To improve this and overall economic growth, the Ethiopian government has focused on promotion of organic fertilizer use. However, adoption of organic fertilizer remains low in most parts of Ethiopia including Shashemene district. This study therefore aimed at identifying the major constraints of organic fertilizer adoption and its income effect with specific objectives being determining transaction costs associated with adoption of organic fertilizer, factors influencing adoption and use intensity and impact of organic fertilizer use on households’ farm income. The study used primary data which was collected from 368 smallholder farmers. The analytical framework incorporated descriptive statistics, double hurdle model and propensity score matching. The results showed that the average transaction costs through bargaining, searching for information and transportation were 68.23 ETB, 53.33 ETB and 124.53 ETB respectively. Policing and enforcement costs were non-existent among the farmers. The household size, livestock number, extension contacts, access to information media and membership to farmer groups significantly influenced the decision to adopt organic fertilizer. The farm income, size of the cultivated plot, membership to farmer groups and application frequency of organic fertilizer significantly influenced the intensity of organic fertilizer use. Propensity score matching revealed that the adoption of organic fertilizer increased farmers per hectare farm income by between 2661 ETB and 2959 ETB. Thus, farmers should be encouraged to adopt organic fertilizer. This could be possible if the government and other stakeholders gave more attention to provision of better extension services and better access to information related to organic fertilizer adoption as well as making availability of this fertilizer to farmers easier.

Suggested Citation

  • Dube, Biru Gelgo, 2016. "Analysis Of Determinants Of Adoption Of Organic Fertilizer And Its Effect On Smallholder Farmers Income In Shashemene District, Ethiopia," Research Theses 265573, Collaborative Masters Program in Agricultural and Applied Economics.
    • Handle: RePEc:ags:cmpart:265573
    DOI: 10.22004/ag.econ.265573
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/265573/files/Biru%20Gelgo-Thesis.pdf
    Download Restriction: no
    File URL: https://ageconsearch.umn.edu/record/265573/files/Biru%20Gelgo-Thesis.pdf?subformat=pdfa
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.265573?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Obisesan, Adekemi, 2014. "Gender Differences In Technology Adoption And Welfare Impact Among Nigerian Farming Households," MPRA Paper 58920, University Library of Munich, Germany.
    2. Kpadonou, Rivaldo & Barbier, Bruno & Denton, Fatima & Owiyo, Tom, 2015. "Linkage between and determinants of organic fertilizer and modern varieties adoption in the Sahel," 2015 Conference, August 9-14, 2015, Milan, Italy 212016, International Association of Agricultural Economists.
    3. Robert M. Solow, 1956. "A Contribution to the Theory of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 70(1), pages 65-94.
    4. Tommaso Nannicini, 2007. "Simulation-based sensitivity analysis for matching estimators," Stata Journal, StataCorp LP, vol. 7(3), pages 334-350, September.
    5. Sascha O. Becker & Marco Caliendo, 2007. "Sensitivity analysis for average treatment effects," Stata Journal, StataCorp LP, vol. 7(1), pages 71-83, February.
    6. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September.
    7. Cragg, John G, 1971. "Some Statistical Models for Limited Dependent Variables with Application to the Demand for Durable Goods," Econometrica, Econometric Society, vol. 39(5), pages 829-844, September.
    8. Manfred Zeller & Aliou Diagne & Charles Mataya, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, International Association of Agricultural Economists, vol. 19(1-2), pages 219-229, September.
    9. Hailu, Berihun Kassa & Abrha, Bihon Kassa & Weldegiorgis, Kibrom Aregawi, 2014. "Adoption and Impact of Agricultural Technologies on Farm Income: Evidence from Southern Tigray, Northern Ethiopia," International Journal of Food and Agricultural Economics (IJFAEC), Alanya Alaaddin Keykubat University, Department of Economics and Finance, vol. 2(4), pages 1-16, October.
    10. Kassie, Menale & Zikhali, Precious & Manjur, Kebede & Edwards, Sue, 2009. "Adoption of Organic Farming Techniques: Evidence from a Semi-Arid Region of Ethiopia," RFF Working Paper Series dp-09-01-efd, Resources for the Future.
    11. Mendola, Mariapia, 2007. "Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh," Food Policy, Elsevier, vol. 32(3), pages 372-393, June.
    12. Ketema, Mengistu & Bauer, Siegfried, 2011. "Determinants of Manure and Fertilizer Applications in Eastern Highlands of Ethiopia," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(3), pages 1-16.
    13. Martey, Edward & Wiredu, Alexander Nimo & Etwire, Prince M. & Fosu, Mathias & Buah, S. S. J. & Bidzakin, John & Ahiabor, Benjamin D. K. & Kusi, Francis, 2014. "Fertilizer Adoption and Use Intensity Among Smallholder Farmers in Northern Ghana: A Case Study of the AGRA Soil Health Project," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 3(1).
    14. Byerlee, Derek & Spielman, David J. & Alemu, Dawit & Gautam, Madhur, 2007. "Policies to promote cereal intensification in Ethiopia: A review of evidence and experience," IFPRI discussion papers 707, International Food Policy Research Institute (IFPRI).
    15. Kefyalew Endale, 2011. "Fertilizer Consumption and Agricultural Productivity in Ethiopia," Working Papers 003, Policy Studies Institute.
    16. Nguezet, Paul Martin Dontsop & Diagne, Aliou & Okoruwa, Victor Olusegun & Ojehomon, Vivian, 2011. "Impact of Improved Rice Technology (NERICA varieties) on Income and Poverty among Rice Farming Households in Nigeria: A Local Average Treatment Effect (LATE) Approach," Quarterly Journal of International Agriculture, Humboldt-Universitaat zu Berlin, vol. 50(3), pages 1-25.
    17. Zeller, Manfred & Diagne, Aliou & Mataya, Charles, 1998. "Market access by smallholder farmers in Malawi: implications for technology adoption, agricultural productivity and crop income," Agricultural Economics, Blackwell, vol. 19(1-2), pages 219-229, September.
    18. Tommaso Nannicini, 2007. "A simulation-based sensitivity for matching estimators," United Kingdom Stata Users' Group Meetings 2007 15, Stata Users Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oluwaseun Samuel Oduniyi & Sibongile Sylvia Tekana, 2021. "The Impact of Sustainable Land Management Practices on Household Welfare and Determinants among Smallholder Maize Farmers in South Africa," Land, MDPI, vol. 10(5), pages 1-16, May.
    2. Mesele Belay Zegeye & Getamesay Bekele Meshesha, 2022. "Estimating the impact of fertilizer adoption on poverty in rural Ethiopia: an endogenous switching regression approach," Asia-Pacific Journal of Regional Science, Springer, vol. 6(2), pages 713-733, June.
    3. Merihun Fikru Meja & Bamlaku Alamirew Alemu & Maru Shete, 2021. "Total Factor Productivity of Major Crops in Southern Ethiopia: A Dis-Aggregated Analysis of the Growth Components," Sustainability, MDPI, vol. 13(6), pages 1-14, March.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simone Bertoli & Francesca Marchetta, 2014. "Migration, Remittances and Poverty in Ecuador," Journal of Development Studies, Taylor & Francis Journals, vol. 50(8), pages 1067-1089, August.
    2. Miftha Beshir & Menfese Tadesse & Fantaw Yimer & Nicolas Brüggemann, 2022. "Factors Affecting Adoption and Intensity of Use of Tef- Acacia decurrens -Charcoal Production Agroforestry System in Northwestern Ethiopia," Sustainability, MDPI, vol. 14(8), pages 1-15, April.
    3. Uematsu, Hiroki & Mishra, Ashok K., 2012. "Organic farmers or conventional farmers: Where's the money?," Ecological Economics, Elsevier, vol. 78(C), pages 55-62.
    4. Dragana Radicic & Geoffrey Pugh & David Douglas, 2020. "Promoting cooperation in innovation ecosystems: evidence from European traditional manufacturing SMEs," Small Business Economics, Springer, vol. 54(1), pages 257-283, January.
    5. Paul Attewell & David Monaghan, 2016. "How Many Credits Should an Undergraduate Take?," Research in Higher Education, Springer;Association for Institutional Research, vol. 57(6), pages 682-713, September.
    6. Aassve, Arnstein & Arpino, Bruno, 2008. "Estimation of causal effects of fertility on economic wellbeing: evidence from rural Vietnam," ISER Working Paper Series 2007-27, Institute for Social and Economic Research.
    7. Yu, Bingxin & Nin-Pratt, Alejandro & Funes, José & Gemessa, Sinafikeh Asrat, 2011. "Cereal production and technology adoption in Ethiopia:," ESSP working papers 31, International Food Policy Research Institute (IFPRI).
    8. Hagen, Tobias, 2016. "Econometric evaluation of a placement coaching program for recipients of disability insurance benefits in Switzerland," Working Paper Series 10, Frankfurt University of Applied Sciences, Faculty of Business and Law.
    9. Bruno Arpino & Arnstein Aassve, 2013. "Estimating the causal effect of fertility on economic wellbeing: data requirements, identifying assumptions and estimation methods," Empirical Economics, Springer, vol. 44(1), pages 355-385, February.
    10. Franklin Simtowe & Manfred Zeller & Aliou Diagne, 2009. "The impact of credit constraints on the adoption of hybrid maize in Malawi," Review of Agricultural and Environmental Studies - Revue d'Etudes en Agriculture et Environnement, INRA Department of Economics, vol. 90(1), pages 5-22.
    11. Hentschker, Corinna, 2017. "From dusk till dawn - Are nights a dangerous time for hospital admissions?," VfS Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168056, Verein für Socialpolitik / German Economic Association.
    12. Luna Bellani & Michela Bia, 2016. "Intergenerational poverty transmission in Europe: The role of education," Working Paper Series of the Department of Economics, University of Konstanz 2016-02, Department of Economics, University of Konstanz.
    13. Roberto ESPOSTI, 2014. "To match, not to match, how to match: Estimating the farm-level impact of the CAP-first pillar reform (or: How to Apply Treatment-Effect Econometrics when the Real World is;a Mess)," Working Papers 403, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    14. Salazar, Cesar & Jaime, Marcela & Pinto, Cristian & Acuna, Andres, 2019. "Interaction between crop insurance and technology adoption decisions: The case of wheat farmers in Chile," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 63(3), July.
    15. Bijwaard, Govert & Alessie, Rob & Angelini, Viola, 2018. "The Effect of Early Life Health on Later Life Home Care Use: The Mediating Role of Household Composition," IZA Discussion Papers 11729, Institute of Labor Economics (IZA).
    16. Origo, Federica, 2009. "Flexible pay, firm performance and the role of unions. New evidence from Italy," Labour Economics, Elsevier, vol. 16(1), pages 64-78, January.
    17. Martin Binder & Alex Coad, 2013. "Life satisfaction and self-employment: a matching approach," Small Business Economics, Springer, vol. 40(4), pages 1009-1033, May.
    18. Carolyn Afolami & Abiodun Obayelu & Ignatius Vaughan, 2015. "Welfare impact of adoption of improved cassava varieties by rural households in South Western Nigeria," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 3(1), pages 1-17, December.
    19. Caliendo, Marco & Künn, Steffen, 2011. "Start-up subsidies for the unemployed: Long-term evidence and effect heterogeneity," Journal of Public Economics, Elsevier, vol. 95(3), pages 311-331.
    20. Maren Duvendack & Richard Palmer-Jones, 2012. "High Noon for Microfinance Impact Evaluations: Re-investigating the Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 48(12), pages 1864-1880, December.

    More about this item

    Keywords

    Environmental Economics and Policy; Farm Management;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cmpart:265573. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://www.agriculturaleconomics.net .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.