Determinants of Farmers’ Seed Demand for Improved Wheat Varieties in Ethiopia: A Double Hurdle Model Approach

Abstract

Using the double hurdle model, the study empirically identifies the most important farm households socio-demographic characteristics that are affecting wheat seed demand and investigate their effects on wheat seed demand. The estimated results indicated that Geographic locational and farm size were significant in explaining both the decision to participate in purchasing wheat seed and the level of wheat seed purchase. Improved wheat variety use in the last five years has been found to have a negative relationship on farm households’ decision to purchase wheat seed but it was not important on the quantity of wheat seed purchase. With regard to educational level, out of the education levels identified, farm households who only read and write have a less likelihood to participate in purchasing of wheat seed. In addition, economic factors such as income and livestock ownership were among the significant determinants of wheat seed purchase demand. Calculated non-farm income elasticties, for those who purchased wheat seed, indicated that farmers’ wheat seed demand sensitive to changes in non-farm income.