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Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia

Received: 29 October 2016    Accepted: 30 November 2016    Published: 3 January 2017
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Abstract

Ethiopia’s agricultural sector accounts to 40 percent of the national Gross Domestic Product. 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, the Ethiopian government has focused on promotion of adoption of organic fertilizer. However, empirical evidence on the impact of organic fertilizer on farmers’ income is lacking in most parts of Ethiopia, specifically in Shashemene district. This study therefore aimed at evaluating the impact of organic fertilizer adoption on households’ farm income. Primary data was collected from 155 adopters and 213 non-adopters of organic fertilizer. Adopters were selected systematically while non-adopters were selected randomly. The study used propensity score matching to analyse the data. The results showed that the adoption of organic fertilizer increased farmers per hectare farm income by 2661 ETB to 2959 ETB. Thus, farmers should be encouraged to adopt organic fertilizer through improving provision of better extension services, which incorporates relevant trainings to the farmers and better access to information related to organic fertilizer as well as making availability of this for farmers easier through encouraging its commercialization.

Published in International Journal of Agricultural Economics (Volume 1, Issue 4)
DOI 10.11648/j.ijae.20160104.14
Page(s) 117-124
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Organic Fertilizer, Agriculture, Propensity Score Matching

References
[1] Acheampong, P. and Owusu, V. (2014). Impact of Improved Cassava Varieties’ Adoption on Farmers’ Incomes in Rural Ghana. CSIR- Crops Research Institute, Ghana.
[2] Adelman, S., Alderman, H., Gilligan, D. and Lehrer, K. (2008). The Impact of Alternative Food for Education Programs on Learning Achievement and Cognitive Development in Northern Uganda. Unpublished report.
[3] Awotide, B., Diagne A. and B. Omonona (2012). Impact of Improved Agricultural Technology Adoption on Sustainable Rice Productivity and Rural Farmers’ Welfare in Nigeria: A Local Average Treatment Effect (LATE) Technique. A Paper Prepared for Presentation at the African Economic Conference. Kigali, Rwanda.
[4] Becker, S. O. and Ichino, A. (2002). Estimation of average treatment effects based on Propensity Scores. The Stata Journal, 2 (4): 1-19.
[5] Berhe, Y. (2014). The Impact of Row Planting of Teff Crop on Rural Household Income: A Case of Tahtay Maychew Wereda, Tigrai, Ethiopia. M.Sc. Thesis.
[6] Chala, M. and Tilahun, U. (2014). Determinants and Impacts of Modern Agricultural Technology Adoption in West Wollega: The Case of Gulliso District. Journal of Biology, Agriculture and Healthcare, 4 (20): 63 - 77.
[7] Ethiopian National Planning Commission (2015). The Second Growth and Transformation Plan (2015/16-2019/20). Addis Ababa, Ethiopia.
[8] Ichino, A., Mealli, F., Nannicini, T. (2006). From temporary help jobs to permanent employment: what can we learn from matching estimators and their sensitivity? Discussion Paper Series No. 2149. Bonn, Germany.
[9] Institute for Sustainable Development (2007). Organic Chain Development in Ethiopia. Participatory Networking Workshop. Addis Ababa, Ethiopia.
[10] International Fertilizer Development Centre (2012). Ethiopian Fertilizer Assessment. African Fertilizer and Agribusiness partnership. USA.
[11] International Food Policy Research Institute (2010). Economic Importance of Agriculture for Sustainable Development and Poverty Reduction: The Case Study of Ethiopia. Global Forum on Agriculture. Paris, France.
[12] Kassa, H., Kassa, A. and Weldegiorgis, K. (2014). Adoption and Impact of Agricultural Technologies on Farm Income: Evidence from Southern Tigray, Northern Ethiopia. International Journal of Food and Agricultural Economics, 2 (4): 91-106.
[13] Kassie, M., Zikhali, P., Manjur, K., and Edwards, S. (2009). Adoption of Organic Farming Techniques: Evidence from a Semi-Arid Region of Ethiopia. Discussion Paper Series, DP 09-01.
[14] Lavison, R. (2013). Factors Influencing the Adoption of Organic Fertilizers in Vegetable Production in Accra, Gahna. M.Sc. Thesis.
[15] Mendola, M. (2007). Agricultural technology adoption and poverty reduction: A propensity-score matching analysis for rural Bangladesh. Food policy, 32 (2007): 372-393.
[16] Ministry of Finance and Economic Development (2010). Growth and Transformation Plan Annual Progress Report for F. Y. 2009/10. Addis Ababa, Ethiopia.
[17] Ministry of Finance and Economic Development (2015). Second Phase Growth and Transformation Plan. Volume – I, Amharic version, Addis Ababa, Ethiopia.
[18] Nannicini, T. (2007). Simulation-Based Sensitivity Analysis for Matching Estimators. The Stata Journal, 7 (3): 334-350.
[19] Nguezet, M., Diagne, A., Okoruwa, O., and Ojehomon, V. (2011). Impact of Improved Rice Technology on Income and Poverty among Rice Farming Households in Nigeria: A Local Average Treatment Effect (LATE) Approach. Contributed paper prepared for the 25th conference of the Centre for the Studies of African Economies (CSAE). University of Oxford, UK.
[20] Rosenbaum, P., and Rubin, D. (1983). The Central Role of the Propensity Score in Observational Studies for Causal Effects. Biometrika, 70: 41-55.
[21] Tolemariam, A. (2010). Impact Assessment of Input and Output Market Development Interventions by IPMS Project: The Case of Gomma Woreda, Jimma Zone. MSc. Thesis. Haramaya University, Haramaya, Ethiopia.
[22] Uaiene, R., Arndt, C., and Masters, W. (2009). Determinants of Agricultural Technology Adoption in Mozambique. Discussion paper, No 67E.
[23] Yamane, T. (1967). Statistics: An Introductory Analysis, 2nd edition, New York: Harper and Row.
Cite This Article
  • APA Style

    Biru Gelgo, Patience M. Mshenga, Lemma Zemedu. (2017). Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia. International Journal of Agricultural Economics, 1(4), 117-124. https://doi.org/10.11648/j.ijae.20160104.14

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    ACS Style

    Biru Gelgo; Patience M. Mshenga; Lemma Zemedu. Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia. Int. J. Agric. Econ. 2017, 1(4), 117-124. doi: 10.11648/j.ijae.20160104.14

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    AMA Style

    Biru Gelgo, Patience M. Mshenga, Lemma Zemedu. Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia. Int J Agric Econ. 2017;1(4):117-124. doi: 10.11648/j.ijae.20160104.14

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  • @article{10.11648/j.ijae.20160104.14,
      author = {Biru Gelgo and Patience M. Mshenga and Lemma Zemedu},
      title = {Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia},
      journal = {International Journal of Agricultural Economics},
      volume = {1},
      number = {4},
      pages = {117-124},
      doi = {10.11648/j.ijae.20160104.14},
      url = {https://doi.org/10.11648/j.ijae.20160104.14},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijae.20160104.14},
      abstract = {Ethiopia’s agricultural sector accounts to 40 percent of the national Gross Domestic Product. 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, the Ethiopian government has focused on promotion of adoption of organic fertilizer. However, empirical evidence on the impact of organic fertilizer on farmers’ income is lacking in most parts of Ethiopia, specifically in Shashemene district. This study therefore aimed at evaluating the impact of organic fertilizer adoption on households’ farm income. Primary data was collected from 155 adopters and 213 non-adopters of organic fertilizer. Adopters were selected systematically while non-adopters were selected randomly. The study used propensity score matching to analyse the data. The results showed that the adoption of organic fertilizer increased farmers per hectare farm income by 2661 ETB to 2959 ETB. Thus, farmers should be encouraged to adopt organic fertilizer through improving provision of better extension services, which incorporates relevant trainings to the farmers and better access to information related to organic fertilizer as well as making availability of this for farmers easier through encouraging its commercialization.},
     year = {2017}
    }
    

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    T1  - Analysis of the Impact of Organic Fertilizer Use on Smallholder Farmers’ Income in Shashemene District, Ethiopia
    AU  - Biru Gelgo
    AU  - Patience M. Mshenga
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    Y1  - 2017/01/03
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    N1  - https://doi.org/10.11648/j.ijae.20160104.14
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    T2  - International Journal of Agricultural Economics
    JF  - International Journal of Agricultural Economics
    JO  - International Journal of Agricultural Economics
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    EP  - 124
    PB  - Science Publishing Group
    SN  - 2575-3843
    UR  - https://doi.org/10.11648/j.ijae.20160104.14
    AB  - Ethiopia’s agricultural sector accounts to 40 percent of the national Gross Domestic Product. 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, the Ethiopian government has focused on promotion of adoption of organic fertilizer. However, empirical evidence on the impact of organic fertilizer on farmers’ income is lacking in most parts of Ethiopia, specifically in Shashemene district. This study therefore aimed at evaluating the impact of organic fertilizer adoption on households’ farm income. Primary data was collected from 155 adopters and 213 non-adopters of organic fertilizer. Adopters were selected systematically while non-adopters were selected randomly. The study used propensity score matching to analyse the data. The results showed that the adoption of organic fertilizer increased farmers per hectare farm income by 2661 ETB to 2959 ETB. Thus, farmers should be encouraged to adopt organic fertilizer through improving provision of better extension services, which incorporates relevant trainings to the farmers and better access to information related to organic fertilizer as well as making availability of this for farmers easier through encouraging its commercialization.
    VL  - 1
    IS  - 4
    ER  - 

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Author Information
  • Department of Agricultural Economics and Agribusiness Management, Egerton University, Njoro, Kenya

  • Department of Agricultural Economics and Agribusiness Management, Egerton University, Njoro, Kenya

  • Department of Agricultural Economics, Haramaya University, Haramaya, Ethiopia

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