Impact of Soil and Water Conservation on Household Income in West Arsi Zone of Oromia

Abstract

Land degradation due to soil erosion and nutrient depletion is one of the main problems constraining the development of the agricultural sector in Ethiopia. As part of intervention activities number of soil and water conservation (SWC) practices have been promoted to smallholder farmers living in highly degraded and drought prone areas of the country. This study was conducted to assess the impact of SWC intervention on the livelihood of smallholder farm households in terms household income and productivity. To meet this objective primary data was gathered from 150 sample responds (67 SWC program participants and 83 non-participants). Descriptive and inferential statistics and propensity score matching (PSM) models were used to address the stated objectives. Results of the descriptive statistics showed that before matching there was statistically significant difference between program participants and their counterfactual households in terms of sex, education and farm experience generally in favor of non-program participants whereas access to market information and amount of land allocated for production in favor of program participant in the zone. The analysis of mean difference in outcome variables before matching result indicated that the mean total crop yield for SWC practiced respondent households is higher (22.102quintal per hectare per household) than SWC non-practiced respondent households (17.26quintal per hectare per household) with mean total crop yield difference equivalent to 4.842 quintal per hectare per household in the zone. In the mean-time, even though, the results of the PSM model revealed that SWC intervention did not result in significant difference between program participant and non-participant households in terms of maize productivity and gross crop income total annual crop income of households who participated in SWC program was 10,838.13 birr whereas its 6075.48 birr for non-participant farmers accounting 4762.65birr difference suggesting that on average participant households earned 43.9 percent more crop value per hectare than the control group. Logistic regression model was employed to estimate propensity scores for matching SWC program households with their counterfactuals. Except sex of the household, Market information, amount of land cultivated, Education and farm experience influenced the probability of HH participation in SWC positively and significantly at 10% expect land cultivated at 5% level. The implication could be that farm household participation was more guided by demographic than economics factors (defined by farm size and herd size). Nominal results of analysis of treatment effects indicate that there was a sign of positive impact on both of the variables considered due to SWC program. However, the changes in crop productivity and gross household income could not be statistically justified as there was no statistically significant difference between the two groups in terms of these variables. The possible reason could be that SWC programs are not short-term nature and impacts are to be realized gradually with increased adoption and intensification of activities. Finally it was to be noted that there were positive trends which all together should guide SWC policy makers to identify important factors influencing the contribution of such a program and reconsider the design and implementation of the interventions.

Keywords: Impacts, Income, participant, non- participant, household, Propensity Score Matching.

DOI: 10.7176/JBAH/12-18-01

Publication date:September 30^th 2022