Impact of Wheat Cluster Farming Practice on Productivity among Smallholder Producers in Arsi Zone of Ethiopia

Abstract

Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Despite efforts made to increase wheat production, the desire for wheat is growing rapidly in Ethiopia. Recently, to curb this problem, the government of Ethiopia has set up a cluster farming system for high-potential agricultural commodities like wheat as a means of improving productivity and ensuring food security of smallholder farmers. In light of the problems and the research gaps identified, this study seeks to address the impact of wheat cluster farming practices on wheat productivity among smallholder producers in the Arsi zone of Ethiopia. Data was collected from 383 sample wheat-producing households. The data was analyzed using descriptive statistics, endogenous switching regression (ESR), and propensity score matching (PSM) models. The results of the ESR indicated that wheat productivity was strongly and positively influenced by endogenous wheat cluster farming participation. The impact of cluster farming participation on cluster participants was about 13 qt of wheat yield increment, representing a 42% increase in participant productivity. The causal effect on non-participants is about 9 qt of wheat yield if they participate in cluster farming practices, representing a 26% increase in wheat productivity. The results of the PSM also reveal that participating in cluster farming significantly increases wheat productivity. As a result, stakeholders should pay close attention to promoting and scaling up wheat cluster farming practices in order to improve the productivity of smallholder farmers who can contribute to achieving food security in Ethiopia.

Keywords: Cluster farming, Productivity, Endogenous switching regression, Propensity score matching

DOI: 10.7176/JBAH/13-3-02

Publication date: February 28^th 2023