Journal of Development and Agricultural Economics

Abstract

This study examined the household level factors affecting the intensity of crop commercializationa and its impacts on livelihood of smallholder farmers. The study was conducted in six villages/tabias b in the Tigray Region, Ethiopia. The estimated results showed that ownership of oxen, amount and quality of yield harvested, and training on crop marketing have a positive and significant effect on intensity of crop commercialization. Outstanding debt and off-farm income were also identified among the driving forces of increased crop commercialization. However, family size, shortage of family labor, unreliable rainfall, costs of farm inputs such as fertilizers, crop pests and diseases, distance to market have a negative and significant effect on the intensity of crop commercialization. The study results indicated that the average crop commercialization index was about 19% of the total produce in the study area which shows the livelihood of the smallholder farm households is almost subsistence oriented. The crop commercialization index for cereals was lower than that of pulses and vegetable and fruits production, implying that in the dryland areas of Ethiopia, cereal production is more of subsistence nature than pulses and horticultural crops. Nevertheless, participation in crop commercialization has a positive and significant impact on smallholder livelihoods through improved income and asset holdings.