Determinants of Marketed Surplus of Groundnut Producers in Digga District of Oromia State, Ethiopia

Abstract

Lower production and marketing problems of groundnut are the main problems though Digga district is potential in groundnut production. So, this study aims to analyze determinants of groundnut marketed surplus in Digga district of Oromia state. Two-stage sampling procedure was employed to draw a sample of 123 groundnut producers. Descriptive statistics was used for characterizing farmers and econometrics analysis was used for identifying determinants of marketed surplus. Explanatory variables resulted from OLS which significantly affected  groundnut marketed surplus were age of the household heads, distance from nearest market, groundnut farming experience, access to extension service, access to credit, and size of land allocated for groundnut. The findings of the study suggest that improving and strengthening institutional services, and infrastructural development to enhance groundnut marketed surplus.

Keywords: Groundnut, Marketed Surplus, Multiple Linear Regression