Factors affecting smallholder farmers maize production and market participation; in case of Dedo district, Oromia Regional state, Ethiopia

Abstract

Identifying factors affecting smallholder farmers maize production and market participation is the most important activities to achieve development. It is still hindered by subsistence oriented production system though there have been efforts to transform in to market oriented production system. However, in most cases smallholder farmers encounter lots of strenuous challenges such as lack of extension service and market information. Consequently, this study attempted to contribute to the consideration of factors affecting smallholder maize production and market participation in case of dedo district. A two stages random sampling technique was applied to select 192 sample maize producers, from 3500 total population of four kebeles to collect primary data through semi structured questionnaires. Both descriptive statistics and inferential analysis model were used for data analysis. Ordinary least square and two stages Henchman were applied to identify the factors affecting maize production and market participation respectively. The result of linear regression models shows that ages, education level, total lands owned, farming system, farm experience, family size, extension contact and crop rotation positively and significantly affect quantity of maize production whereas plot distance, soil and off-farm activities negatively and significantly affect maize production. Result of probit model analysis showed that ages, education, farming experience, frequency of extension contact, cultivated land for maize, means of transportation and access to market information positively and significantly affect farmers decision of maize output market participation :whereas participation on off-farm activities was found to affect the participation decision negatively and significantly. According to henchman second stage of truncated result, education level of the household head, land cultivated for maize and farm experience have significant and positive effect in the volume of maize marketed supply: whereas gender, credit accessibility, distance to the nearest market and off-farm activities were found to have negative and significant effects on volume of maize marketed supply. Therefore, this study recommends that, for the purpose of maize production, market participation and extent of participation among maize farmers, proper marketing infrastructure like maize market center should be put in place. The government and other policy makers should increase production and marketing information as well as ability of maize farmers through avenues like mass media, extension service, and other means of strengthens capability.