The impact of commercialization of smallholder farming on the welfare of Households in Ethiopia: the Case of Lemmo Woreda, Hadiya Zone

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Research Paper 07/07/2023
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The impact of commercialization of smallholder farming on the welfare of Households in Ethiopia: the Case of Lemmo Woreda, Hadiya Zone

Zemede Chamiso Haile
Int. J. Biosci.23( 1), 44-54, July 2023.
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Abstract

The study aimed to analyze the impact of the commercialization of agriculture on the welfare of households in Lemo Woreda of Hadiya zone. To this end, primary data were collected from 295 households using a structured survey questionnaire. Out of 295 respondents, 147 were participants in commercialization and 148 were non-participants. The collected data were analyzed using descriptive statistics and PSM econometric model. The average amount of income of participants is greater by 12,220 Birr per year than non-participants. Moreover, the study also analyzed the factors that determine participation in the commercialization of agriculture using a log it model. Accordingly, thirteen variables were analyzed in the model that was hypothesized to determine households’ participation in the commercialization of agriculture. Even though there are efforts to enhance commercialization of smallholder agriculture, a lot still needs to be done to improve the level of commercialization since the overwhelming majority of smallholders are not well integrated with the market yet.

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