Determinants of Farmers Participation in Coffee Production: A Case of Boneya Boshe, Woreda, East Wollega Zone, Oromia - Ethiopia

Abstract

The objectives of the study were to identify the decisions to participate in coffee production and to examine factors affecting production intensity in the study area. Multi-stage sampling procedures were employed in order to draw a sample of 177 respondents of which 125 and 52 were participants and non-participant respectively; using simple random sampling, both primary and secondary data were employed. The data was collected using structured questionnaires. The findings of probit model revealed that fifteen variables were hypothesized to explain probability of participation decision; of which coefficients of seven variables were significant at less than 1% probability level, and two variables were significant at less than 5 % probability level. Out of these significant variables, the coefficients of seven variables indicated positive effects on the likelihood of producing coffee. In Tobit regression eight variables were entered the final estimation and out of which three variables were significant at less than 1 % probability level, and two variables were significant at less than 5 % probability level. Out of these significant variables, only the coefficient of one variable indicated negative effects on the intensity of coffee production. The major variables that affect coffee production and its intensity negatively are experience, and contract farming. It is recommended that while giving the overall extension service for participant and non- participant the extension agents must show marginal effect of producing coffee in the study area