Determinants of Technical Efficiency of Rose Cut-Flower Industries in Oromia Region, Ethiopia

The objective of this study is to measure and identify input use efficiency level of 28  rose cut flower industries in three districts of Oromia Regional state (Ethiopia) using a two stage approach. . In the first stage, a non-parametric (DEA) method was used to determine the relative technical, scale and overall technical efficiencies. In the second stage, a Tobit model was used to identify sources of efficiency differentials among industries. The results obtained indicated that the mean technical, scale and overall technical efficiency indices were estimated to be 92%, %61 and 58%, respectively for the cut flower industries. This Implies, major source of overall technical inefficiencies was scale of operation rather than pure technical inefficiency. Besides, the estimated measures of technical efficiency were positively related with Farming experience, formal schooling years of manager’s and negatively related with age of farms. No conclusive result was obtained for the relation between size and efficiency. Key words: Technical Efficiency, Scale Efficiency, DEA, Tobit, Rose cut flowers, farming experience, Oromia, Ethiopia

Climate Change Adaptation Strategies of Smallholder Farmers: The Case of Assosa District, Western Ethiopia

This study identified farmers’ choice of and factors determining adaptation strategies to climate change in Assosa district, western Ethiopia which is severely affected by climate change stresses. Both primary and secondary data were used for the study. Primary data were collected from a randomly selected 140 sample households through interview and focus group discussions. Relevant secondary data were also obtained from Assosa district office of agriculture, national metrology agency and different reports. Descriptive statistics were used to describe farmers’ adaptation strategies to climate change. Multivariate probit model was estimated to identify the factors determining households’ choice of adaptation strategies to climate change. The results of the model pointed out that the likelihood of households to adopt irrigation, improved varieties of crops, adjustment of planting date, crop diversification and soil conservation practices were 52.3%, 45.8%, 49.5%, 46.9% and 34.1%, respectively. The results also indicated that the joint likelihood of using all adaptation strategies was only 1.5% and the joint likelihood of failure to adopt all of the adaptation strategies was 3.5%. Moreover, Multivariate probit model confirmed that sex, literacy status, farming experience, family size, land holding, access to credit, access to media, extension contact, farmer to farmer extension, farm income, off/non-farm income, livestock ownership, market distance and access to training have a statistically significant impact on climate adaptation strategies. Therefore, policy makers should focus on the aforementioned factors to enhance farmers’ adaptation to climate change in order to reduce their vulnerability to different shocks and seasonality as well as to improve their livelihood. Keywords: Climate change, Adaptation strategies, Multivariate probit model, Assosa district, Western Ethiopi

Pattern, Trend and Determinants of Crop Diversification: Empirical Evidence from Smallholders in Eastern Ethiopia

Crop diversification is the most important risk management strategies. The study investigated the pattern, trend and covariates of crop diversification in eastern Ethiopia based on data collected from 167 households randomly and proportionately selected. In order to manage risks of drought, pests and diseases, soil fertility decline and input prices variations, farmers in the study areas employ crop diversification as a self-insuring strategy. The farmers are becoming risk-averse which has implications on technology adoption. Tobit model result indicated that farmers with more extension contacts and larger livestock size are likely to specialize whereas those who have access to market information and irrigation, those who own machinery and more number of farm plots are more likely to diversify. In order to promote crop diversification, providing farm machinery through easy loans and improving access to market information and irrigation should be given attention. The extension system should include risk-minimization as a strategy. Keywords: crop diversification, risk, risk management strategies, risk-averse, Ethiopia

Determinants of Rural Household Savings in Ethiopia: The Case of East Hararghe Zone, Oromia Regional State

Saving is undeniably considered as a strategic variable in the theory of economic growth determining both individual and national wellbeing. However, saving level in Ethiopia particularly in rural areas is very low and little is known empirically about its patterns and determinants.  Therefore, this study tries to assess the saving behaviors among rural household in East Hararghe Zone, Oromia Regional State, Ethiopia using survey data generated from 700 sample households. The results of this study show that 79.2% of the entire sample households had savings during the survey time. From  the tobit model used for analysis,  nine variables, namely household head education level, livestock holdings, access to credit service, income, investment, training participation, contact with extension contacts, forms of savings and saving motives were found to have significant influence on the amount of households savings. The results of the study shows that rural households do save irrespective of their low income mainly in informal saving institutions showing high request for accessibility potential for formal saving institutions. Key words: Rural household savings, Patterns of savings, Oromia, East Hararghe Zon

Farmers Choices of Precursor Crop for Wheat Production in Arsi Zone of Ethiopia

Adoption of crop rotation is seen as best agronomic practice for increasing wheat yield in Ethiopia. Most farmers lack improved farming experiences and skills. They focus on production of food crops (mainly cereals) year after year for family needs. Hence practice of crop rotation is one of the options for improving wheat yield. However, there is lack of empirical study on the factors influencing farmers’ choices of precursor crop for rotation for wheat cultivation. To fill this gap, this study identified factors influencing farmers’ choices of precursor crop to wheat planting. Cross-sectional survey data collected from randomly selected 381 farm households and multinomial logit model were used to achieve the objective. The study identified that farming experience and skill of household head, livestock holding sizes, and access to pesticides had positive and significant effects on farmers’ choices of pulse and vegetable crops being precursors to wheat planting. The study also obtained that the mean predicted probabilities were 0.58 and 0.34 for the choices being cereal and pulse crops as precursor crops to wheat planting, respectively. It is suggested that agricultural extension personnel need to focus on the factors that influenced farmers’ choices of precursor crops to break cereal monoculture system and improve wheat yield. Keywords: Wheat in Ethiopia, Precursor crop, Crop rotation, Multinomial logit mode

Smallholder Wheat Production Efficiency in Selected Agro-ecological Zones of Ethiopia: A Parametric Approach

Wheat productivity is very low in Ethiopia. Improving production efficiency is one of the options for enhancing wheat productivity. To identify the level of production efficiency and sources of inefficiencies, this study was carried out in three major wheat producing agro-ecologies. It used cross-sectional data collected from randomly selected 381 farm households for 2012/13 cropping season. A Cobb-Douglas Production Function and Stochastic Frontier Analysis were employed to achieve the objectives. The study found considerable variation in production efficiency among agro-ecologies and within agro-ecology. The mean technical efficiency estimates for lowland, midland and highland agro-ecologies were 57 percent, 82 percent and 78 percent, respectively. The technical efficiency ranges from 24.4 to 88.6 percents in the lowland, 51.6 to 94.4 percents in the midland, and 34.5 to 94.3 percents in the highland agro-ecologies. There is more capacity to increase wheat yield given the current state of technology and input levels. Wheat output elasticities associated with land, labor, chemical fertilizers and other inputs (seed and pesticides) were positive and significant in the lowland whereas in mid and highland agro-ecologies, output elasticities of land and chemical fertilizers were significant. Age of household head, livestock holding size, practice of crop rotation, access to credit and improved seed, and family size were significant factors that affect wheat production efficiency. To enhance wheat production and productivity, agricultural extension activities need to target agro-ecological orientation, the identified efficiency determining socioeconomic characteristics, and farm inputs utilization of households. Keywords: Wheat in Ethiopia, Efficiency, Cobb-Douglas, Stochastic Frontier Analysi

Impact of Enset Participation in Value Chain on Smallholder Household Food Security and Income in Southwestern Ethiopia

Growing demand for enset means that rural smallholder farmers have excellent potential to respond on the supply side, particularly in Southern Ethiopia. Evidence is required to determine whether or not smallholder farmers participate in these new market opportunities and whether they gain anything from doing so. This study examines the effects of smallholder farmers' involvement in the Enset participation in value chain on food security and income (as determined by crop income and daily caloric intake in the Gedeo zone of Southern Ethiopia). The investigation analyzed cross-sectional data from 380 randomly chosen smallholder farmers. Impact evaluation employed the Endogenous Switching Regression (ESR) model, which takes selection bias into account. Results from the ESR demonstrate how market, institutional, socioeconomic, and demographic factors influence the decision to participate as well as the food security and income of farm households. Overall, Enset market involvement has a favorable and considerable effect on the food security and income of rural farmers, with a significant difference between groups. The improvement of household food security and income depends on policies that lower the transaction costs of accessing markets, promote trees through various media, work to build the capacity of rural institutions, encourage and support Enset associations, design appropriate support from various stakeholders, encourage market linkages among various market players, and give farmers the opportunity to enroll in basic education