Intensification and crop commercialization in Northeastern Ethiopia

Abstract

Due to low farm production and productivity the majority of subsistence farmers in Ethiopia are not self-sufficient in food, and deliver meager amounts of farm output to consumers and agro-processing industries. Agricultural growth, an important pathway to food security, is realized through increases in per capita farm endowments (physical and financial assets and resources) and adoption of appropriate and proven technology and requires a transformation out of the semi-subsistence, low-input and low-productivity agriculture into a high productivity commercial agriculture. This article investigates farm commercialization from two perspectives - output-oriented and input-oriented farm commercialization. Logistic model was applied to examine factors of commercial participation and use of chemical fertilizer, while Cob Douglass production function was employed for the analysis of production determinants. The data used for the analysis was collected from farm households sampled from communities in Northeastern Ethiopia. The regression analysis of commercialization asserts that lack of market access (measured by distance) and engagement in livestock and off-farm employment significantly and negatively impact food crop commercialization. Total food crop production has been found to impress a strong and significant effect on commercialization. The production analysis indicated that farm size operated and technology (chemical fertilizer) are the most important production factors under the context of the study areas. Results of estimation of fertilizer use show the important and positive role of access to oxen and credit, and size of operated farm. The findings of the study generally imply the need for rationalization of policies and institutions in order to create incentives and rules that promote land transaction and markets for credit, product and input