Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia

Bahilu Ejeta; Daniel Masresha

doi:doi:10.11648/j.aff.20200906.11

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Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia

Bahilu Ejeta, Daniel Masresha

Published in Agriculture, Forestry and Fisheries (Volume 9, Issue 6)

Received: 5 October 2020 Accepted: 17 October 2020 Published: 30 October 2020

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Abstract

Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.

Published in	Agriculture, Forestry and Fisheries (Volume 9, Issue 6)
DOI	10.11648/j.aff.20200906.11
Page(s)	153-162
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2020. Published by Science Publishing Group

Keywords

Heckman’s Two Step, Red Bean, Smallholder, Commercialization, Market Participation

References

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APA Style

Bahilu Ejeta, Daniel Masresha. (2020). Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agriculture, Forestry and Fisheries, 9(6), 153-162. https://doi.org/10.11648/j.aff.20200906.11

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ACS Style

Bahilu Ejeta; Daniel Masresha. Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agric. For. Fish. 2020, 9(6), 153-162. doi: 10.11648/j.aff.20200906.11

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AMA Style

Bahilu Ejeta, Daniel Masresha. Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agric For Fish. 2020;9(6):153-162. doi: 10.11648/j.aff.20200906.11

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@article{10.11648/j.aff.20200906.11,
  author = {Bahilu Ejeta and Daniel Masresha},
  title = {Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {9},
  number = {6},
  pages = {153-162},
  doi = {10.11648/j.aff.20200906.11},
  url = {https://doi.org/10.11648/j.aff.20200906.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20200906.11},
  abstract = {Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.},
 year = {2020}
}

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TY  - JOUR
T1  - Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia
AU  - Bahilu Ejeta
AU  - Daniel Masresha
Y1  - 2020/10/30
PY  - 2020
N1  - https://doi.org/10.11648/j.aff.20200906.11
DO  - 10.11648/j.aff.20200906.11
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 153
EP  - 162
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20200906.11
AB  - Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.
VL  - 9
IS  - 6
ER  -

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Author Information

Bahilu Ejeta

Department of Agricultural Economics, Werabe University, Werabe, Ethiopia
Daniel Masresha

Department of Agricultural Economics, Wellega University, Nekemte, Ethiopia

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APA Style

Bahilu Ejeta, Daniel Masresha. (2020). Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agriculture, Forestry and Fisheries, 9(6), 153-162. https://doi.org/10.11648/j.aff.20200906.11

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ACS Style

Bahilu Ejeta; Daniel Masresha. Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agric. For. Fish. 2020, 9(6), 153-162. doi: 10.11648/j.aff.20200906.11

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AMA Style

Bahilu Ejeta, Daniel Masresha. Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia. Agric For Fish. 2020;9(6):153-162. doi: 10.11648/j.aff.20200906.11

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@article{10.11648/j.aff.20200906.11,
  author = {Bahilu Ejeta and Daniel Masresha},
  title = {Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia},
  journal = {Agriculture, Forestry and Fisheries},
  volume = {9},
  number = {6},
  pages = {153-162},
  doi = {10.11648/j.aff.20200906.11},
  url = {https://doi.org/10.11648/j.aff.20200906.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.aff.20200906.11},
  abstract = {Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.},
 year = {2020}
}

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TY  - JOUR
T1  - Determinants of Red Bean Commercialization by Smallholder Farmers in Shalla Districts, Oromia Regional State, Ethiopia
AU  - Bahilu Ejeta
AU  - Daniel Masresha
Y1  - 2020/10/30
PY  - 2020
N1  - https://doi.org/10.11648/j.aff.20200906.11
DO  - 10.11648/j.aff.20200906.11
T2  - Agriculture, Forestry and Fisheries
JF  - Agriculture, Forestry and Fisheries
JO  - Agriculture, Forestry and Fisheries
SP  - 153
EP  - 162
PB  - Science Publishing Group
SN  - 2328-5648
UR  - https://doi.org/10.11648/j.aff.20200906.11
AB  - Smallholder farmers face many constraints that impede them to derive benefits from market participation. This study assessed factors that influence output side commercialization decision and level of commercialization of red bean crop in Shalla Districts, Oromia Regional State, Ethiopia. In this study multi stage sampling techniques were employed to select 150 bean producers from five sample kebeles in the study area. Both descriptive and econometric methods were used to analyze the data. Heckman’s two step sample selection model was applied to analyze factors determining commercialization decision and level of commercialization in the bean market. The first-stage probit model estimation results revealed that age of household head, years of schooling, membership cooperative, family size, off-farm activities and active labor affected probability of market participation. Second-stage Heckman selection estimation indicated that age of household head, family size, farm size and years of schooling significantly determined volume of red bean supply. The results also showed that most of the factors determining decision of participation in red bean farm also determine level of participation, suggesting that the two decisions were made simultaneously by red bean producers. Finally, stakeholders should be designing appropriate policies, creating better credit services and agricultural extension services to households, advancing market infrastructure and delivering of marketing incentives to smallholder farmers which would encourage the farmers to participate in the food market.
VL  - 9
IS  - 6
ER  -

Copy | Download