Agriculture is the main focus of Ethiopia's economic development. It accounts for about 32.7% of the country’s GDP (NBE, 2020). Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Wheat demand is rising quickly in Ethiopia despite efforts to improve wheat production. Recently, to curb this problem, the government of Ethiopia has set up a cluster farming system for high-potential crops like wheat as a means of improving productivity and maximizing the income 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 stallholder’s asset building in the Arsi Zone of Ethiopia. Data was collected from 383 sample wheat-producing households. The data was analyzed using descriptive statistics and propensity score matching model. The propensity score matching model of the average treatment effect on the treated result revealed that wheat cluster farming participation had a significant impact on the smallholders’ asset building. It has been found that, on average, participation in wheat cluster farming has increased smallholders' asset building by ETB 8014.13 (148.69$) for wheat cluster participants as compared to non-participants. Hence it was concluded that cluster farming has improve wheat production which is the major source of income to build asset of the study areas smallholders. Therefore, stakeholders should develop strategies to promote and scale up cluster farming practices. As a result, smallholder farmers will use the extra wheat produced by cluster farming to accumulate more assets and thus raise their standard of living.
| Published in | Journal of Business and Economic Development (Volume 8, Issue 1) |
| DOI | 10.11648/j.jbed.20230801.12 |
| Page(s) | 1-11 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2023. Published by Science Publishing Group |
Cluster Farming, Asset Building, Productivity, Propensity Score Matching
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APA Style
Getachew Nigussie Tefera, Mengistu Ketema Aredo, Zekariyas Shumeta Nejo, Kedir Jemal Ibrahim. (2023). Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia. Journal of Business and Economic Development, 8(1), 1-11. https://doi.org/10.11648/j.jbed.20230801.12
ACS Style
Getachew Nigussie Tefera; Mengistu Ketema Aredo; Zekariyas Shumeta Nejo; Kedir Jemal Ibrahim. Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia. J. Bus. Econ. Dev. 2023, 8(1), 1-11. doi: 10.11648/j.jbed.20230801.12
AMA Style
Getachew Nigussie Tefera, Mengistu Ketema Aredo, Zekariyas Shumeta Nejo, Kedir Jemal Ibrahim. Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia. J Bus Econ Dev. 2023;8(1):1-11. doi: 10.11648/j.jbed.20230801.12
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Download@article{10.11648/j.jbed.20230801.12,
author = {Getachew Nigussie Tefera and Mengistu Ketema Aredo and Zekariyas Shumeta Nejo and Kedir Jemal Ibrahim},
title = {Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia},
journal = {Journal of Business and Economic Development},
volume = {8},
number = {1},
pages = {1-11},
doi = {10.11648/j.jbed.20230801.12},
url = {https://doi.org/10.11648/j.jbed.20230801.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jbed.20230801.12},
abstract = {Agriculture is the main focus of Ethiopia's economic development. It accounts for about 32.7% of the country’s GDP (NBE, 2020). Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Wheat demand is rising quickly in Ethiopia despite efforts to improve wheat production. Recently, to curb this problem, the government of Ethiopia has set up a cluster farming system for high-potential crops like wheat as a means of improving productivity and maximizing the income 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 stallholder’s asset building in the Arsi Zone of Ethiopia. Data was collected from 383 sample wheat-producing households. The data was analyzed using descriptive statistics and propensity score matching model. The propensity score matching model of the average treatment effect on the treated result revealed that wheat cluster farming participation had a significant impact on the smallholders’ asset building. It has been found that, on average, participation in wheat cluster farming has increased smallholders' asset building by ETB 8014.13 (148.69$) for wheat cluster participants as compared to non-participants. Hence it was concluded that cluster farming has improve wheat production which is the major source of income to build asset of the study areas smallholders. Therefore, stakeholders should develop strategies to promote and scale up cluster farming practices. As a result, smallholder farmers will use the extra wheat produced by cluster farming to accumulate more assets and thus raise their standard of living.},
year = {2023}
}
TY - JOUR T1 - Impact of Wheat Cluster Farming Practice on Smallholder’s Asset Building in Arsi Zone of Ethiopia AU - Getachew Nigussie Tefera AU - Mengistu Ketema Aredo AU - Zekariyas Shumeta Nejo AU - Kedir Jemal Ibrahim Y1 - 2023/04/20 PY - 2023 N1 - https://doi.org/10.11648/j.jbed.20230801.12 DO - 10.11648/j.jbed.20230801.12 T2 - Journal of Business and Economic Development JF - Journal of Business and Economic Development JO - Journal of Business and Economic Development SP - 1 EP - 11 PB - Science Publishing Group SN - 2637-3874 UR - https://doi.org/10.11648/j.jbed.20230801.12 AB - Agriculture is the main focus of Ethiopia's economic development. It accounts for about 32.7% of the country’s GDP (NBE, 2020). Wheat is one of the major cereal crops produced by smallholder farmers in Ethiopia. Wheat demand is rising quickly in Ethiopia despite efforts to improve wheat production. Recently, to curb this problem, the government of Ethiopia has set up a cluster farming system for high-potential crops like wheat as a means of improving productivity and maximizing the income 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 stallholder’s asset building in the Arsi Zone of Ethiopia. Data was collected from 383 sample wheat-producing households. The data was analyzed using descriptive statistics and propensity score matching model. The propensity score matching model of the average treatment effect on the treated result revealed that wheat cluster farming participation had a significant impact on the smallholders’ asset building. It has been found that, on average, participation in wheat cluster farming has increased smallholders' asset building by ETB 8014.13 (148.69$) for wheat cluster participants as compared to non-participants. Hence it was concluded that cluster farming has improve wheat production which is the major source of income to build asset of the study areas smallholders. Therefore, stakeholders should develop strategies to promote and scale up cluster farming practices. As a result, smallholder farmers will use the extra wheat produced by cluster farming to accumulate more assets and thus raise their standard of living. VL - 8 IS - 1 ER -
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