Abstract:
The main objective of this study was to evaluate impact of Licha Hadiya farmers’ multipurpose agricultural cooperative union on poverty reduction in rural household the
cause of Lemo district. Primary data was collected through structured questionnaire
based on 75 members’ respondents and 95 non-members respondents from purposively
selected 4 kebeles in Lemo woreda. Total 170 household was selected by using multistage sampling method. Secondary data were gathered different published and
unpublished relevant material. Hadiya zone cooperative and marketing sectors, Lemo
woreda cooperative and marketing sectors are also secondary data source. In study
logit model and propensity score matching (PSM) method were employed to achieve
the objective of the study that to assess poverty reduction indicators outcome those
income, asset, expenditure and human capital between cooperative members and nonmembers. Based on PSM estimation results of study were Licha Hadiya farmers’
cooperative union have significant impact on rural household poverty reduction in most
above listed impact indicator outcome variable was significantly different among
members and nonmembers of cooperative. The result indicate that as agricultural
cooperative have positive and statistically significant impact on participant household
those on income from crop sells, durable home assets, saving and house hold food
expenditure. In view of such evidences, further promotion, deepening, strengthen and
supporting of agricultural cooperative and its service recommended for rural poverty
reduction.
