Economic Benefit of Agricultural Technology on Teff and Maize Crops in Ethiopia: The Blinder-Oaxaca Decomposition

Abstract

ABSTRACTThis article examines the economic benefit of agricultural technologies on maize and teff crops based on primary data collected from 400 farmers in Awi zone, Ethiopia. The results of budgetary analysis technique indicated that adoption of fertilizer increased profit of maize production by 37.7% while it was estimated to be 58% for simultaneous adoption of fertilizer and improved seeds. On the other hand, adoption of fertilizer in teff production increased profit by 90.9%. The Blinder-Oaxaca decomposition found the existence of a significant productivity gap between nonadopters and adopters varying from 50% to 73% where 71.7% to 77.3% of the gaps primarily resulted from adoption of technologies. Hence, the government, financial institutions, and farmers’ cooperatives should be coordinated to enhance farmers’ adoption of agricultural technologies through expanding extension services, expanding credit accessibility, and ensuring timely availability of technologies at an affordable price.