“Determinants of Agricultural Productivity of Households in Jimma Zone

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 viii 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.