Determinants of Smallholder Farmer’s Participation in Potato Production and Market Supply. The Case of Adaberga District, Oromia Regional State, Ethiopia

Abstract

This study investigates the determinants of smallholder farmer’s participation in potato production and market supply in Adaberga, the case of Oromia Regional State,Ethiopia.The study specifically assess the level of potato production participation and market supply, identify determinants of smallholder farmer’s participation in potato production and factors affecting volume of potato market supply in the study area. The data were collected from farm households through semi-structured questionnaires. A multi-stage random sampling procedure was used to select 234 sampled respondents using probability proportional to size. Descriptive statistics and econometric model such as Heckman selection model which include both participation and observation equation were employed through to analyze the data. Probability of participation was significantly determined by gender, educational level, farmland size, off-farm participation, soil fertility, transportation, distance, credit service, price information and technology. Under observation equation: educational level, farmland size, potato seed variety, soil fertility, transportation, distance and price information had significant determinant variables. It is recommended that , policies should emphasis on farmer’s to use modern potato farming technology, creating awareness for gender equality in potato farming, improved seeds and transportation facilities to farmer’s and access information. Furthermore, farmer’s should be allocate land for potato farming in order to increase potato products and volume of potato supply for the market ;inventory credit should be given; farmer’s should take awareness from agricultural expert and take necessary care so that their land properly does not run out.