IMPACT OF HIGH YIELDING WHEAT VARIETIES ON FARM INCOME OF SMALLHOLDER FARMERS IN ETHIOPIA

The objective of this study was to estimate the impact of high yielding wheat varieties adoption on farm income of smallholders in Ethiopia. The study used cross-sectional data collected from 174 sample farm households selected through two-stage stratified random sampling techniques. Propensity score matching (PSM) applied to analyse the impact of adoption on farm income by smallholder farmers. The result of the PSM estimation showed that adoption of high yielding wheat varieties has significant impact on farm income of treated households as compared to the control groups. The treated households had earned farm income of about 21452 Ethiopian Birr per year while the untreated smallholders earned farm income of only 11141 Ethiopian Birr. The average treatment effect on the treated (ATT) of farm income of adopters is greater than non-adopters that has brought about 9 % increase in farm income of smallholders. The findings suggest that the government and stakeholders would need to focus on further support of high yielding wheat varieties adoption and should be given due attention for its impact on farm income generation of smallholders.