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Article
Publication date: 19 January 2021

Eric N. Okoyo, Muluken Gezahegn Wordofa, Jemal Y. Hassen and Moges Bezabih

This study is conducted to evaluate the impact of rural credit on farm household income and food security.

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Abstract

Purpose

This study is conducted to evaluate the impact of rural credit on farm household income and food security.

Design/methodology/approach

A multistage random sampling procedure is implemented to select 180 (82 credit user and 98 non-credit user) households from Kurfa Chele district, eastern Ethiopia. The Propensity Score Matching technique is used to estimate the impact of credit utilization on the welfare indicators.

Findings

The results of the econometric model estimation show that participation in the rural credit program was positively influenced by a household's educational status, family size, voluntary saving and participation in training related to credit and saving. On the contrary, livestock holding and extension advice were found to negatively affect participation. Furthermore, participation in rural credit program is found to increase annual income by 59% and calorie intake by 21%. These are significant results implying that participation in the rural credit and saving program improved household welfare in the study area.

Originality/value

This study is important because it shows the welfare impact of making credit program available to potential users in the study area. Moreover, for effectiveness of the credit program it is necessary to target households with relatively larger family size and those with relatively better education (to induce change among the wider farming community). It is also essential to focus on the saving behavior of the program beneficiaries and enhancing the management system by ensuring that sufficient development agents are in place.

Details

Agricultural Finance Review, vol. 81 no. 4
Type: Research Article
ISSN: 0002-1466

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Article
Publication date: 31 May 2023

Yared Deribe Tefera and Bisrat Getnet Awoke

Agriculture in Ethiopia relies heavily on traditional farm power sources and is designated by the lowest farm machinery access, in contrast to other Sub-Sahara African (SSA…

246

Abstract

Purpose

Agriculture in Ethiopia relies heavily on traditional farm power sources and is designated by the lowest farm machinery access, in contrast to other Sub-Sahara African (SSA) countries. The purpose of this research is to analyze the heterogeneity of mechanization service transactions and factors determining farmers' cooperation in mechanization clusters and willingness to accept land consolidation.

Design/methodology/approach

The authors conducted a cross-sectional survey of producer households in major crop production areas in the Oromia, SNNPR, Amhara and Tigray regions. The sampling design involved three stages: districts were selected using a stratified sampling approach accompanied by simple random samples of kebele units and producer households in the second and final stages, respectively.

Findings

This study’s results show that mechanization service costs, service relationships, clustering and land consolidation exhibit significant heterogeneity across the study areas. Cluster farming was found to be advantageous against diseconomies, rationalized by upgrading the mechanization scale. The probit model parameterization of the probability distributions reveals that household, land, crop, mechanization service, remoteness and location-related factors determine participation in mechanization clusters and willingness to accept land consolidation.

Research limitations/implications

Fostering cooperation by focusing on constraints and demand of users is suggested to reduce transaction costs and expand hired mechanization services to unaddressed areas. The findings are relevant to most SSA countries where mechanization development is hampered by land fragmentation.

Originality/value

Limited information is available on agricultural mechanization development for smallholder farmers, particularly in Ethiopia, and this study adds empirical evidence about the synergy between cluster farming and mechanization, horizontal coordination and alternative supply models.

Details

Journal of Agribusiness in Developing and Emerging Economies, vol. 15 no. 1
Type: Research Article
ISSN: 2044-0839

Keywords

Available. Open Access. Open Access
Article
Publication date: 29 August 2024

Getasew Daru Tariku and Sinkie Alemu Kebede

The purpose of this paper is to assess the adoption of climate-smart agriculture (CSA) and its implication on improving the farming household food security status, their…

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Abstract

Purpose

The purpose of this paper is to assess the adoption of climate-smart agriculture (CSA) and its implication on improving the farming household food security status, their resilience and livelihood risk management of farmers.

Design/methodology/approach

This systematic review has followed procedures to accomplish the review, including literature searches, screening studies, data extraction, synthesis and presentation of the data.

Findings

Based on the result of the review, the determinants of CSA adoption can be categorized into five categories, including demographic factors (age, sex, family size, dependency ratio, education), economic factors (land size, household income, livestock ownership), institutional factors (extension services, training access, credit services, farm input, market distance), environmental factors (agroecology, change in precipitation, slope of land) and social factors (cooperatives membership, farmers perception). The result also shows that applying CSA practices has an indispensable role on increasing productivity, food security, income, building resilient livelihoods, minimizing production risk and alleviating poverty. This concluded CSA practice has a multidimensional role in the livelihood of agrarian population like Ethiopia, yet its adoption was constrained by several factors.

Originality/value

This review mainly emphasizes on the most commonly practiced CSA strategies that are examined by different scholars.

Details

International Journal of Climate Change Strategies and Management, vol. 17 no. 1
Type: Research Article
ISSN: 1756-8692

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