Determinants and Profitability of Inorganic Fertilizer Use in Maize Production by Smallholder Farmers in Nono Benja District, Jimma Zone, Oromia Region, Ethiopia

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