Determinants of small holder farmers saving in limu seka woreda, south west Oromia, Ethiopia

Abstract

The main objective of the study was to identifying the determinants of smallholder farmers saving at Jima zone Limu Seka Woreda. Primary data source was used for the study. Data was collected from 394 households from five kebeles through probabilities and non probabilities sampling technique. Both descriptive and econometric model of binary logit was used for data analysis. The result obtained from analyses was seven variables age, educational level, family size, land size; farmers annul income, access to credit and production type of farmers statistically significant to affect saving decision of farmers. Whereas sex, marital status, distance to financial institution and perception to interest rate were statistically insignificant. The study recommended concerned body should give attention for the educational sector and farmers’ extension training programs, better to try to improve income of small holder farmers by diversifying income sources, family size must be managed, expand credit service to small holder farmers, proper land management and encourage coffee farming production were enables small holder farmers to saving