Abstract:
This research thesis aimed at investigating the determinants of agricultural productivity of rural
households in Jimma zone. The study applied various methods of analysis including descriptive
statistical tools and econometric model to achieve the specific objectives. Multiple linear
regression model (ordinary least square estimation technique) was employed to investigate the
determinants of agricultural productivity. On the other hand, Ethiopian Rural Household Socioeconomic Survey of 2013/14 data collected by Central Statistical Agency (CSA) of Ethiopia in
collaboration with the World Bank as the main sources of the secondary data.
The econometric result shows that sex, age, education, family size, land, farm experience and
credit access are significantly and positively affect agricultural productivity of sampled
households. However, fertilizer application negatively and insignificantly affects agricultural
productivity. Sex of the household head was the main socio-economic factor for the variation of
income among the rural households. The primary data for the research contains two parts
namely agriculture, and households’ diverse socioeconomic characteristics. The study was
concluded that family size, land size and credit access being the most persuasive factors of
production and rural household income enhancement. The policy implications of the study To
design and implement appropriate strategy that eases the burden of local farmers’ dependence
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on limited physical agricultural inputs to encourage agricultural productivity. The government
should encourage land renting to continue more preferable than land sharing because the
farmer is more beneficial from the long-term perspective.
