Effect of off‐farm income on smallholder commercialization: panel evidence from rural households in Ethiopia

Woldeyohanes, Tesfaye; Heckelei, Thomas; Surry, Yves

doi:10.1111/agec.12327

Cited by 53 publications

(49 citation statements)

References 38 publications

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“…Therefore, farmers who have more schooling are more technically efficient in Teff farming. This finding is also supported by Abebe (2014) and Wassie (2014).…”

Section: Farmer's Own Characteristics That Affect the Technical Efficsupporting

confidence: 78%

“…Hence, farmers who have more years of experience are expected to be more technically efficient. This result confirmed with Wassie (2014). Apart from this logic, age has a parabolic effect on agricultural technology adoption by taking the assumption of old farmers' fear to take a risk in their farm operation beyond a turning point or optimum age (Fikadu et al, 2017).…”

Section: Farmer's Own Characteristics That Affect the Technical Efficsupporting

confidence: 54%

“…Studies analyzed the technical efficiency of major cereal crops including Teff in Ethiopia regardless of the neighborhood effects (Ahmed et al, 2015;Abebe, 2014;Wollie, 2018;Tiruneh, 2013;Wassie, 2014;Gezahegn et al, 2006;Jemal et al, 2018a). Wassie, (2014) estimated the average technical efficiency of Teff production at 63.56%, while Gezahegn et al (2006) estimated it to be 80% and 83% for extension package program participant and non-participant of Teff farms in Ethiopia, respectively. These studies imply that without investing in any additional resources (i.e., using the existing technology); Teff production could increase by 17% to 36.44%.…”

Section: Introductionmentioning

confidence: 99%

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Technical Efficiency of Teff Farms Controlling for Neighborhood effects in Ethiopia

Fikadu

Heckelei

Woldeyohanes

2020

Preprint

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Teff can be called the lifeblood of the majority of Ethiopians. However, Teff production is constrained by farmers’ own and neighbor farmers’ socioeconomic, demographic, intuitional, and farm characteristics that decrease Teff productivity. To fill this gap, a combination of modern technologies with a better level of farm efficiency becomes indispensable. Hence, this study aims to examine the technical efficiency of Teff farms controlling for neighborhood effects in Ethiopia using 858 Teff farmers. The stochastic frontier translog production and Spatial Lagged Explanatory (SLX) models are estimated using two waves of panel data from the Ethiopian socioeconomic survey. The unobserved heterogeneity has been controlled for by a correlated random effect estimation. The results show that the average technical efficiency of Teff farm is 78.5%, indicating that farmers have about 21.5% likelihood for improving their Teff farm efficiency, averagely. Besides, the estimated correlated random effect of the spatial lagged explanatory model indicates that gender, age, education, family size, community participation, planting method, average neighbors' community participation, average neighbors' planting method, average neighbors' mineral fertilizer application, and average neighbors' use of improved seed were found to significantly affect the level of technical efficiency of Teff farms in the study area. Moreover, we show that controlling for the neighborhood effects in the estimation of technical efficiency of Teff production statistically and significantly changes the inferences. Therefore, neighborhood effects can be the best alternative platform for farm knowledge transmission and use as a development actor if properly managed and organized.

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“…Therefore, farmers who have more schooling are more technically efficient in Teff farming. This finding is also supported by Abebe (2014) and Wassie (2014).…”

Section: Farmer's Own Characteristics That Affect the Technical Efficsupporting

confidence: 78%

Section: Farmer's Own Characteristics That Affect the Technical Efficsupporting

confidence: 54%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Technical Efficiency of Teff Farms Controlling for Neighborhood effects in Ethiopia

Fikadu

Heckelei

Woldeyohanes

2020

Preprint

Self Cite

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“…Sufficient credit normally enables farmers to invest in off‐farm activities and productivity‐enhancing inputs such as fertilizers and pesticides (Matshe & Young, ; Petrick, ). However, increased agricultural production may lead to liquidity constraints and compel farmers to acquire additional credit through off‐farm activities (Woldeyohanes, Heckelei, & Surry, ).…”

Section: Introductionmentioning

confidence: 99%

The effects of off‐farm work on fertilizer and pesticide expenditures in China

Abdulai

2017

Review Development Economics

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This study examines the effects of participation in off-farm work on farm expenditures on fertilizer and pesticide, using farm household survey data from China. Simple mean value comparisons reveal no statistically significant differences in fertilizer and pesticide expenditures between offfarm work participants and nonparticipants. However, econometric estimation with a treatment effects model shows a negative selection bias. After controlling for this bias, the empirical results show that participation in offfarm work exerts a positive and statistically significant impact on fertilizer and pesticide expenditures. Our findings generally suggest that the income effect of off-farm work stimulates agricultural production by increasing investments in productivity-enhancing inputs.

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“…Male labor is extremely invaluable only during few periods during crop production. In other words, the presence of male labor during the off-farming season is less important (Woldeyohanes, 2016) As a result, to deal with the temporal financial hardships, the household often decides to dispatch one or several members to work as wagelaborers in the neighboring town. Due to the opportunity of off-farming works, farmers regularly travel to nearby towns like Wuqro to seek supplementary income after the completion of the task of harvesting.…”

Section: Wage-labormentioning

confidence: 99%

Dealing with deficit: An assessment of gender-based strategies to fill income gaps

Weldu¹

2017

Int. J. Sociol. Anthropol.

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The paper examines gender-based strategies to fill income gaps in Adi E're, Ethiopia. In the parish, crop production is vulnerable to a multitude of challenges. Shortage of rainfall, locust plagues and rodent pests are seriously damaged a potential good harvest. In addition, farming activities is underperforming due to a relatively low technological level. For details on the factors associated to low crop production in the rural Tigray, see the work of Bauer. These are some of the factors that are affecting income generation in many households. As a result, they are often tried to address temporal deficits in grain production through strong gender-oriented strategies. The findings reveal that women have long played and continue to play an important role in the course of annual crop management and food security. Contrary to general perception, women in Adi E're are not merely circumscribed in processing and preparing food, collecting fuel and water, and caring for family but they are part of the wider practice of resource management and socio-economic interdependency. They are not merely contributing to stretch grain supply as far as possible, but also to maintain the household from economic bankruptcy and dispersal. The present study is, therefore, not only aimed to affirm the indispensable contribution of women in filling income gaps, but also to devalue prejudicial works. The study attempts to consult a plethora of primary and secondary sources. Both men and women living in the parish are extensively interviewed. The sources are significantly collected, scrutinized and analyzed. The validities of the sources are cross-checked one against the other.

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Effect of off‐farm income on smallholder commercialization: panel evidence from rural households in Ethiopia

Cited by 53 publications

References 38 publications

Technical Efficiency of Teff Farms Controlling for Neighborhood effects in Ethiopia

Technical Efficiency of Teff Farms Controlling for Neighborhood effects in Ethiopia

The effects of off‐farm work on fertilizer and pesticide expenditures in China

Dealing with deficit: An assessment of gender-based strategies to fill income gaps

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