Impact of high yielding wheat varieties adoption on farm income of smallholder farmers in Ethiopia

Abstract

The objective of this study was to assess impact of adoption of high yielding wheat varieties on farm income in Mao-Komo district of Benishangul-Gumuz, Ethiopia. The study used cross-sectional data collected from sample of 174 farm households selected through two-stage stratified random sampling techniques. Descriptive statistics and econometric models were used to analyze the data. Propensity score matching (PSM) applied to analyze the impact of adoption on farm income. The result of the PSM estimation showed that adoption of high yielding wheat varieties has significant impact on farm income of treated households as compared to the control groups. The treated households had earned farm income of about 21452 Ethiopian Birr per year while the untreated smallholders earned farm income of only 11141 Ethiopian Birr. The average treatment effect on the treated (ATT) of farm income of adopters is greater than non-adopters that has brought about 9 % increases in farm income of smallholders. The findings suggest that the government and stakeholders should need to focus on improving farm land and livestock productivity, strengthening the provision of education, and frequency of extension visits, encouraging participation in non-farm activities, creating reliable information and awareness towards farmers’ perceptions, and improving infrastructures in the area. Finally, further support of high yielding wheat varieties adoption should be given due attention for its impact on farm income generation of smallholders.