Abstract:
Inorganic fertilizer is one of the technologies that could increase crop productivity. However, farmers were still using lower than the recommended rate and yet there are a lot of farmers
who are not using inorganic fertilizers at all. This study aimed at assessing determinants and
profitability of inorganic fertilizer use in maize production among the smallholder farmers of
Nono Benja district. Since maize is the main crop and cultivated mainly in all kebeles of the
study area, it was used as a case for analysis. Two stages random sampling technique was
used to select a total of 174 maize producer farmers. Primary data were collected from the
sampled respondents through structured interview. For this study; descriptive statistics, econometric models, net profit and Kendall’s coef icient of concordance were used. Descriptive result showed that the sampled respondents on average applied 142.8kg ha
-1
(Sulfur blended Diammonium phosphate &Urea) which is 71.5% of the extension package
recommended rate. Also, the descriptive result showed that out of the total 14 explanatory
variables, 8 variables show statistically significant dif erence among user and non-user at 1%
and 10% level. Results from Heckman’s two-step procedure indicated that, age of household
head, farm income and use of input credit were positively af ecting the probability of using
inorganic fertilizer in maize production. Education level of household head, livestock holding
and frequency of contact with extension agent positively influenced both the probability of
using and intensity of inorganic fertilizer use in maize production whereas perception on
relative price of input-output negatively influenced both the probability of using and intensity
of inorganic fertilizer use. Of -farm income positively influenced the intensity of inorganic
fertilizer use. The average profit of the user sample respondents is 2,217ETB ha
-1 after
covering all costs incurred during production period. Therefore, it is necessary to give due
emphasis to the indicated determinants in order to assist maize producing farmers on use and
intensity of fertilizer use to boost maize productivity