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

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.