Factors Affecting the Use of Market Information by Wheat Farmers and Its Impact on Their Income: The Case of Omo Beyam District, Jimma Zone, and Southwest Ethiopia

Abstract

This study investigates factors affecting the use of market information by wheat farmers and its impact on their income in Omo Beyam district, Jimma Zone, and Southwest Ethiopia. Two-stage sampling procedures was chosen to select district and kebeles based on the high potential of wheat production and the participation of producers in wheat marketing. The study used data on 245 respondents collected through a structured questionnaire from Omo Beyam district, Jimma Zone. Descriptive and Propensity score-matching inferential methods were employed to analyze the data. Findings show that 59.19% of respondents use market information, with family size as a significant determinant; larger households are more likely to use market information. Proximity to markets also facilitates better access to timely information, while education level significantly correlates with use rates, as literate farmers outperform their illiterate counterparts. Gender disparities persist, with male farmers using market information more frequently than females. Key factors influencing market information use include extension participation, access to credit, frequency of market visits, and exposure to mass media. A binary logit model analysis reveals five significant variables positively affecting household income: education level, land allocated for wheat production, access to credit, market visit frequency, and mass media access. To assess the impact of market information use on household income, a propensity score matching (PSM) model is employed. Among the matching algorithms tested, caliper matching with a bandwidth of 0.01 is found to be the most effective. Results indicate that households using market information experience an average income increase of 17785.55 ETB compared to non-users. These findings underscore the importance of enhancing access to market information for improving household incomes among smallholder farmers. The study recommended that searching and using up-to-date market information is advisable to gain high profit and Policymakers should implement comprehensive strategies that promote access to market information while addressing educational and resource barriers to maximize economic benefits for farmers.