Agricultural technology adoption and its impact on smallholder farmers welfare in Ethiopia

Abstract

Agricultural production and productivity play a paramount role in the livelihood of rural farm households. Agricultural technology affects agricultural productivity and the welfare of rural farm households. However, there is a gap in knowledge on the effect of different technology adoptions on farm household’s welfare. This study examined the effect of improved wheat variety adoption on household’s welfare in Ethiopia. The study was based on cross-sectional data collected through a semi-structured questionnaire from 150 sample farm households. Double hurdle and Endogenous Switching Regression model were employed. The result indicates that the improved wheat variety adoption decision and intensity of adoption of farm households have determined by credit access, extension visits, soil fertility, plot size, off-farm employment, age of household head, distance from input market, and farm experience. The estimated model also revealed that adoption of improved wheat varieties has a positive and significant effect in enhancing farm household’s welfare. Therefore, adoption of yield-enhancing agricultural technologies should be more intensified to improve smallholder farmers’ welfare. Key words: Adoption, double hurdle, endogenous switching regression, impact, technology.