COLLEGE OF AGRICULTURE AND NATURAL

RESOURCES
ARESEARCH PROPOSAL SUBMITED TO DEPARTMENT OF
AGRICULTURAL ECONOMICS IN PARTIAL FULFILLMENT
OF THE REQUIREMENT FOR THE DEGREE OF BACHELOR
OF SCIENCE IN AGRICULTURAL ECONOMICS
FACTORS AFFECTING WHEAT PRODUCTIVITY OF
SMALLHOLDER FARMERS IN ZABA GAZO WOREDA OF
SOUTH WESTERN REGION,OF ETHIOPIA

BY ID NO
AKILILU AMANUEL…………UGR/21115/13
MELESE CHENEKE…………. UGR/22146/13

ADVISOR: WAGARI.W, (MSC)

,
BALE ROBE, ETHIOPIA
JUNE: 2023

1
ABSTRACT

Ethiopian economy shows remarkable economic growth, and the agricultural sector takes the
highest contribution. Mostly Crops take the highest share in total production and area
coverage which constituted on average 68% of the Ethiopian agricultural gross domestic
product. Consequently, wheat is an important cereal crop which makes a significant
contribution to the development of the agricultural sector in genera land to the farm household
food security status in particular. Additionally, existing wheat production and marketing
system is exacerbated by constraints which have their own influence on decreasing yield of
wheat. But, in opposite to the constraints, there are also important opportunities which
motivate wheat production and marketing trends of farmers in zaba gazo woreda.

2
ACRONOMYS
FAO Food and Agricultural Organization
GDP Gross Domestic Product

GNP Gross National Product

OLS Ordinary Least Square

PADETES Participatory Demonstration and Training Extension System

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 TABLE OF CONTENTS

Contents
ABSTRACT..............................................................................................................................................................ii
ACRONOMYS........................................................................................................................................................iii
CHAPTRER ONE.....................................................................................................................................................1
1. INTRORODUCTION..........................................................................................................................................1
1.1 BACK GROUND OF THE STUDY............................................................................................................1
1.2 Statement of the problem.............................................................................................................................3
1.3 Research question..........................................................................................................................................4
1.4 Objective of the study...................................................................................................................................4
1.4.1 The general objective............................................................................................................................4
1.4.2 Specific objectives..................................................................................................................................4
1.7 Significance of the study...............................................................................................................................5
1.8 Scopes and limitation of the study...............................................................................................................6
CHAPTER TWO.......................................................................................................................................................7
2. LITERATURE REVIEW..................................................................................................................................7
2.1 Theoretical Literature review......................................................................................................................7
2.1.1 Small Holder farmers............................................................................................................................8
2.2 Determinants of cereal crop productivity.............................................................................................9
2.2. 1 Gender and agricultural production................................................................................................13
2.2.2 Age, family size, landholding size and agricultural production......................................................14
2.3.1 Chemical fertilize................................................................................................................................15
2.3.2 Empirical Literature..........................................................................................................................16
CHAPTER THREE...............................................................................................................................................17
3, METHODOLOGY............................................................................................................................................17
3.1 Description of the study area....................................................................................................................18
3.2 Method of data collection...........................................................................................................................18
3.3 Sample size and sampling techniques.......................................................................................................18
3.4 Data source and data collection tools.......................................................................................................18
3.5 Data analysis techniques............................................................................................................................18
3.6 Multiple regression model specification...................................................................................................19
4. WORK AND BUDGET PLAN.........................................................................................................................21

4
4 REFERENCE......................................................................................................................................................23
6 APPENDIX..........................................................................................................................................................25

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 CHAPTRER ONE
1. INTRORODUCTION

1.1 BACK GROUND OF THE STUDY

Agriculture is important sector in the world. It provides food for consumption and raw material for most
of agriculture based industrial and also creates employment opportunities for large population in
developing countries. As one of the poorest countries in the world Ethiopia’s agriculture accounts for
about 40% of National Gross Domestic Product (GDP), 90% of export and 85% of total employment
(CSA,2010).

From the total contribution of agricultural for Ethiopia GDP, cereal crops accounts 70% of agricultural
contribution to GDP. Cereal yield doubled over the past decades, but in recent years cereal production
has stagnated. This is due to a number of factors like shortage of rainfall, land degradation, not using
recommended input level soil erosion, population pressure and others (Seyoumet Al 2011).

Cereal crop productivity in developing countries has not been able to satisfy the food requirement of the
people. Food productions in developing countries like

Ethiopia have failed to satisfy consumption requirement. Now days millions of people in these countries
do not have access to sufficient food to lead healthy life. Increasing cereal crop production was
becoming the main national strategy to many developing countries (EEA, 2000).

The foundation of Ethiopian economy was long remaining agriculture. But development agriculture
requires emphasis on a concurrent development of industrialization.

In context this refers to the development those industries most closely related to agriculture and referred
to as agro- industry.

As agriculture plays a dominant role in the economy the real and sustainable development of Ethiopia
was, in any event unthinkable without sound progress in the expansion of agriculture’s output. In spite
of its importance in the national economy, agricultures were largely based on subsistence farm
household, whose modes of life and works have remained unchanged (CSA, 2006).

1
In Ethiopia small holder farmers are characterized by dependence on traditional tools and farming
practices, and agricultural products will be transported by the primitive means. These factors resulted in
reduction of farm output (Todaro, 2010).

Approximately 1.4 billion people in the world today live in extreme poverty level that-they survive on
less than the US dollar of 1.25 per day, (World bank data base 2013).842 million people one out of eight
people in the world do not have enough food to eat. 98% of the world under nourished people lives in
developing countries. Among those 223 million people live in sub Saharan Africa.75%of the world
poorest people lives in rural areas and depends on agriculture and related activities (FAO, 2011).

Angela is found in south western part of Ethiopia and where there is sufficient food problem leading to
poor health and low quality of life.

The farmers in Zaba Gazo use both traditional and modern methods of farming. due to this cereal crop
production remains less productive. There for this study is assess factors affecting smallholders’ farmers
wheat productive in Zaba Gazo woreda of south eastern Ethiopia

1.2 Statement of the problem

Even though the government has set strategy at country level to fight wide spread of poverty and to
improve food security through agriculture sector, it is known that the cereal crop productivity remains
very low, especially when it is compared to the rapid population growth.

According to the most recent report of Ethiopian Economy Association, gaining in the yield level in the
farming areas over the past few years for most cereal crops has not been able to increase average yield
for most countries as the whole (EEA, 2011).

In Ethiopia, the cereal crop sector is dominated by small holder farmers Small holder farmers on average
cultivated together about 95% of total area under cereal crop production and produce more than 92% of
total agricultural output. But cereal crop productivity of small holder farmers is to be failed to fulfill the
food security need (Ayelekuris, 2006).

In Ethiopia improvement in agricultural sector requires a more efficient use of natural resources such as
land, labor and capital since these resources are major of production. Hence a better performance of
agriculture will therefore depends on how well the constraints

2
hindering the proper functioning of these activities. Among the major factors behind are a decline in
farm size and subsistence farming, land degradation, variability of rainfall. Extension service and
inadequate transport network are the major determinants that affect agricultural output (Birhanu etal,
2010).

Specially, the above-mentioned problems are common in the study area. Based on Tekleab Addssie
(2013) reports, fertilizer, education level, irrigation, number of oxen-per day and compost have
significant and positive relationship with wheat productivity while total land, family size and market
distance have significant and negative relationship with wheat productivity.

So, this study will attempt to see the factor that affect wheat productivity in Zaba Gazo woreda of south
western Ethiopia.

1.3 Research question

1.What factors affect smallholder farmers wheat productivity in Zaba Gazo woredas

2.What are the existing opportunities and challenges faced in smallholder farmer wheat production in
Zaba Gazo woreda

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 1.4 Objective of the study
1.4.1 The general objective
The general objective of this study is to identify factors that affecting wheat productivity of small holder
farmers in Zaba Gazo woreda of south western Ethiopia.

1.4.2 Specific objectives

Specific objectives of the study are

 To identify factors that affecting smallholder farmers wheat crop productivity in Zabad Gazo
woreda.
 To examine existing opportunities and challenges faced by smallholder wheat producers in Zaba
Gazo woreda.

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1.7 Significance of the study
The result of the study would be an important input for public sector especially for the agricultural
sector and it will also serve as reference for other young researchers which they wish to conduct a
further study around this study area in the future.

1.8 Scopes and limitation of the study

This study was conducted in Angela kebele; Zaba Gazo Woreda. It contains small holder farmers in the
study area producing cereal crop production in general wheat productivity in particular. The results of
this study may not be a good representative of all sub kebeles

5
 CHAPTER TWO

2. LITERATURE REVIEW
2.1 Theoretical Literature review
The small holder farmers are subsistence for most output produced for family consumption (although,
some may be sold or trade in local markets and few staple food crops usually including wheat, barely,
sorghum, corn, teffs) are chief source of food intake. Output and productivity are low and only the
simplest traditional method and tools are used. Capital invest is minimal, land and labor are the principal
factors of production, (Adam smith, 2003).

Subsistence agriculture is highly risky and uncertain in the region where farms are extensively small and
cultivation is dependent on uncertainties of variable rainfall. Average output will be low and the
peasants will be exposed to the very real danger of starvation. Accordingly, when risky and uncertainty
are high, small holder farmers may be very reluctant to shift from traditional technology and crop
pattern to a new one that provides higher yields, but entail greater risk of crop failure, (Adam smith,
2003).

A cereal crop is generally defined as a grass grown for its small edible seed. It has been the most
important source of the world’s seed. Cereals group are the most widely adopted crop species. They can
be grown under adverse condition with a least some yield. These broad ranges of adaption the efficiency
of production with which cereal can be stored make them dependable source of food.

2.2 Small Holder farmers

Small holder farmers are farmers which derives their livelihood mainly from agriculture utilize family
labor in farm production most output is produced for family consumption. (Dail, Argo-economics a
duet, 2011).

Subsistence farming on small plot of land it is way of life for the vast majority of Ethiopian people and
its productivity is low. In spite of the existence of some unused land and potentially cultivable land, only
small areas can plant and weeded by farm family at the time when it uses only traditional tools. In some
areas traditional farming practices must rely primly on the application of human labor to small pare
parcels of land. The given limited area of that a farm family can cultivate in the context of a traditional
technology and the use of primitive tools. This small area tends to be intensively cultivated. As the
result, they are subject to rapidly diminishing return to increase labor input. In such condition shifting
cultivating is the most economic method of using limited suppliers of labor on extensive tracts of land,
6
(Michael. P Tadoro, 2003).

Small holders are being the back bone of the economy provide the largest portion of basic food supply
for the urban population or raw material for agro-industries and exportable agricultural commodities.
Small holder is characterized by almost exclusive use of family labor in the production process direct
dependence on farm for subsistence requirements, low level of productivity, absence of farm
mechanization and degree of specialization, (Hannover University,1991).

2.3 Determinants of cereal crop productivity

In developed country, productivity of agriculture has significantly increased while proportion of the
population in the sector decline. On the other hand, the economies of low-income countries of the world
are predominantly agrarian with traditional system and extremely low labor productivity in the
agricultural sector.

Consequently, it is better to outline factors affecting agricultural output specially, cereal crop output by
using some method of arrangement.

Different authors used different classification schemes of agricultural output growth determinants

Wilber (2001) divides agricultural output growth determinants into conventional (land, labor, physical
capital, and fertilizer) and non-conventional factors of production which include private and public
agricultural research education, infrastructure, government program and policies and environmental
degradation, (Senai, 2006).

Millikan and Hap well divided the determinant of agricultural output into five major categories. These
are physical input factors, economic factors, organizational factors, cultural and motivational factors,
and knowledge factors. Each of which is further divided into a series of sub categories, (Millikan and
Hap well).

I. The Physical Input Factors

The physical factors further sub divided into non-human (non -labor) physical input and labor physical
input. Non labor physical is land, seeds, water, fertilizer, pesticide, structure, work animals, tools,
machinery, fuel and power other than animal power, (Ibid.p.15).

7
 A. Unpredictable Weather Condition

Lack of adequate rain fall, the variability and seasonality of rain fall affected agricultural output in
general and cereal crop in particular living the country exposed to commercial food imports and food
aids.

B. Erosion and Land Degradation

As population pressure increase particularly in the highlands, farmers intensively exercise deforestation.
This will leave farm lands grazing exposed to erosion followed by massive and degradation.

C. Land Fragmentation

The increase in the size of rural population coupled with limited area of farming land in the highlands
has led to land fragmentation. As the size of farm house holds increases redistribution of land has
continued reducing per capital and size.

D. Irrigation

Irrigation is the most important determinants of agricultural output. Constraint of on agricultural

development is the amount of water available rather than supply of land. In the near and far east, there
are many regions use the available water resource as intensively as possible, as long as it is economic to
do so, (Kuiper, 2000).

II. The Economic Environmental Factors

The economic environment is the determinant of agricultural, particularly cereal crop concentrates on
the development of other sector of the economy. It is interring sectional linkage that is believed to be the
major determinant of agricultural growth. The factors include under the economic environment by
Millikan and Hap good are:

 Transport, storage, processing and marketing facilities for product

 Facilities for the supply and distribution of inputs including credit

 Input prices including interest rate

 Product prices including price of consumer

 Taxes, subsidies and quotas

8
Lack of infrastructure is one of the critical problems especially in the rural country of Ethiopia.

This hinders agricultural production process from purchase of inputs up to marketing product.
Transportation cost will account a high proportion of price of agricultural products.

The existence of agricultural credit market has a lot of impact on the amount of farm output when
farmers cannot afford top finance purchases of improved seeds, fertilizer, pesticides and provision of
irrigation facilities, etc. are the only option to resemble is credit. Thus, the absence of credit facilities
could become a consequential bottleneck to use the modern technology. In this regard, the problem of
peasant farmers deserves species consideration, (Assef Admassie, 1987).

This is very critical problem as agricultural market play a significant role in increasing production and
stimulating economic development. Further, the points out those efficient and integral market ensure
optimal allocation of resources in agriculture and motivate farm to increase output. Under developed
output, input and capital market could negate any effect aimed and at increasing agricultural production
and productivity, (Ibid).

Organizational factors

and imaano is good organizational composed of land tenure, farm size and legal form, general
government service Organizational factors for cereal crop production development listed by kobboo and
policies and voluntary and statutory farmers organization for coordinate physical input, economic
service, local government and diffusion of knowledge.

The organizational factors are regarded as the means to bring the package to farmer’s producer; from
ministry and research station to the farm itself without these factors the package is incomplete and the
other factors will remain barren. The main advocate of organizational factors is important input to
increase agricultural output is experts of public administration. The possible solution of agricultural
problem in developing countries lies better organization, better training of civil servants, and higher
status for government program in agriculture.

9
 III Knowledge factors

The major advocates of the importance of farmers’ education to increase productivity of crops and
provide high pay off in changing, moldering environment then in traditional agriculture (T.W. schultz)

In transforming traditional agriculture farmers use all the variable techniques of production efficiently.
This means “farmers are efficient but poor.” The only option for him, to break this dead lack to increase
technical skill of production in economic terms, this would shift the production possibilities frontier out
wards giving more yield as belief of T.W. schultz.

The technological advancement is the obvious difference between farmers in developing and developed
countries. Farmers in developing countries still use animal power to cultivate while their counter parts in
the the poor performance of food grain production in developing countries, (MulatDemeke2003).
developing countries ease their burden by using machinery and equipment for agricultural production.
Low level of technology utilization is one of the major factors behind.

V. Cultural and motivational factors

Only the availability of improved technologies and their distribution or extension workers do not
sufficient for the proper implementation of agricultural technologies distribution. Cultural and
motivational factors for the adoption of improved technologies ply a key role to fill the gap and bring
about on end tour goals. It was commonly believed that Africa peasants do not react to improved
technology and economic incentives. It is Currently believed that peasant production is target
production. The peasants’ desire a target income and when they get this do not care to expand
production and they may do not even harvest crop, (Emanuel Okwuosa). In general, this factor includes:
social structure, cultural values, dynamic of peasant communities, process of social cultural change and
integration and value of agricultural institution practice with the culture of society and etc.

10
2.4 Gender and agricultural production
Gender refers to socially constructed roles and relationships of women and men in a given culture or
location (Olayemi, 2012, p. 237). In enhancing agricultural production and income, the full participation
of men and women is very important. Women tend to be the major players in the farm labor force
engaged in production, harvesting and processing activities (Chow Garforth and Caredey 2013).It is also
known that the majority of food is produced by women farmers and they are Responsible for fulfilling
the basic needs of the family (Camara,etal,2011,p.141).Studies have also indicated that women farmers
are more Environmentally conscious compared to men farmers (Burton, 2013, p. 22). Nevertheless,
there are research findings that indicate the existence of gender inequalities in the agricultural sector.

For instance, there is categorization of some crops to be “men’s crops” and others as “women’s crops”
(Mohammed, & Abdulquadir, 2011, p. 37). A study conducted in Ghana by Ideate et al. (2012, p. 240)
indicated that vegetable production demanded more physical strength and was dominated by men. On
the other hand, de Brauw, Li, Liu, Rozelle and Zhang (2008, p. 343) revealed that, in China, the
contribution of women to livestock production was 64 percent while 59 percent of the marketing work
was dominated by men. They noted that this is labor feminization and that the earnings are controlled by
their male counterparts. Women farmers are also challenged by the absence of capital, information and
access to markets which prevents them from producing enough to fulfill the basic necessities (Jeffry,
&Suleiman, 2013, p. 470). The scarcity of knowledge related to women’s rights exposes them to land
grabbing and the loss of their heritage (Camera etal., 2011, p. 146).

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2.5 Age, family size, landholding size and agricultural production
family size and landholding size.

Agricultural production is influenced by other household characteristics such as the farm operator’s age,
The age of the household head is a proxy variable for the farming experience of farm operators. Farmers
will highly dependent on their knowledge of farm practices in cultivating different crops (Adomi, etal,
2003, p. 390). Hence, experienced farmers will be expected to enhance the productivity of their
holdings. However, it is not without limit as older farmers lack the required physical strength on the
farm and lower the probability of technology adoption (Mous, etal, 2011, p. 363; Burton, 2013, p.
23).Land is the most critical natural resource for countries like Ethiopia where the agricultural sector is
the engine of the national economy (Amsalu,etal,2006, p. 448).Farm operators with larger landholding
sizes would have a better farm income if sufficient family labor was available. This leads to an increased
demand for children who can work on the land (Hedican, 2006, p. 324; Kim, &Park, 2009, p.278).

It is not possible to expand the landholding size without matching it with an increase in the size of the
household. Hence, households with larger families face a challenge to feed each of the family members
and this will have its own negative effect on the nutritional status of the family (Olayemi, 2012, p. 137).

2.6 Agricultural production technology

Agricultural production technologies include biological and chemical technologies. Specifically, these
technologies include chemical fertilizers, selected seeds or High Yielding Varieties, irrigation and soil
quality enhancing technologies. Farmers use these technologies in order to enhance the production and
productivity of the land. It is also indicated that, for poor farmers, adoption of technology places new
demands on their limited resource base (Kamruzzaman, & Takeya, 2008, p. 218).

2.7 Chemical fertilize

African governments have promoted the increasing use of agricultural inputs in their own countries
inspired by the Asian Green Revolution which was brought about by using high-

yielding seed and fertilizer technologies (Crawford, Kelley, Jayne, &Howard, 2003, p. 277).

In a similar vein argued that the entry point for intensification is the use of organic and inorganic
fertilizer in the Sahel because, if soil fertility is not improved, the use of other technologies such as high-
yielding varieties will not have a significant impact. Crawford et al. (2003, p. 281-2) further indicated
that the objectives of input promotion strategies have many features such as financial, economic, social
and political objectives. The financial aspect of the input promotion strategy is to increase the net
12
income of farmers, traders or other participants in the agricultural economy. The economic feature of
input promotion strategy is also to increase the real income of the society as a whole. The social aspect
of the input program is the improvement of welfare indicators that are difficult to measure in terms of
monetary values. Some of the social objectives are to improve nutrition intake and national food self-
sufficiency. The political objective of the input program arises because of the government intervention
for the sake of equalization of benefits. Some programs may be designed intentionally to build political
support; as a consequence, they may benefit one or more groups at the expense of others.

2.8 Empirical Literature

According to EEA, (2000) agricultural production in Ethiopia is characterized by severe fluctuations

usually following the fluctuation in the rears and highly correlated to the overall performance of the
economy. Agricultural share in GDP is about 53% during the dreg and 51.2% under EPDRF. The
highest growth rate in agriculture was achieved in 2002/87when it grew by 18.8% while the lowest was
achieved during the drought year of 2003/85 where it declined by about 21%.

Stephenson, (2007) studies shows in Ethiopia cereal crop sectors are dominated by small holder farmers.
The small holder farmers on average account for 95% of total area under crop and for more than 90% of
total agricultural output. In addition, according to MEDAC (2008), 94% of food crops are produced by
small holder farmers.

Small holder farmers are vital for Ethiopia’s agriculture and rural economy. Small holder farmers
defined as those marginal and sub marginal farm house holds that own or land cultivated less than 2.00
hectare of land cultivate about 78% of the country’s farmers (at agricultural census, 1990/91). These
small holder farmers owned only 23% of the total cultivated land their contribution to national grain
production was nonetheless 41%. Their contribution to household food security and poverty alleviation
is thus dis-proportionally high and is increasing. Moreover, as the national population increases, so does
the number of small holding (FAO, corporate document repository).

Cereal are the most dominant among the field of crops accounting for 88.3% and 83.2% of total
population and cultivated area respectively for the period of 2000 -2006. The performance of field crops
improved after 1991 owning improved policy environment increased availability of input such as
fertilizer and relatively good weather cereal crop production rose to 110.6 million quintals, while area
harvested jumped to 8.8 million hectors in 2011 (EEA, 2000).

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In the performance of cereal from 2004 to 2010 is that of the output achieved even during this low
period was significantly better than the average output levels of derg period. The production in
2001/2008 was higher than the derg period by about 48%. On the other hand, land covered by cereals
increased by 44.8% in 2003/2009 (EEA, 2000).

The performance of the main cereal staples that included wheat, teff, maize and sorghum was once again
remarkable in the reporting period close to 145 million quintals of cereal crops have been harvested
from 8.8 million hectares of farm lands. In terms of production the years of 2008/9 production exceeds
the achievement of the 2003/4 production year by 70% and represents of the fifth consecutive bumper
harvest. Official sources indicate that over the past five years, production has increased an average by
14% (EEA, 2007/08).

According to EEA, (2007) shows the agricultural sector has been said that time and again the agriculture
is the backbone of the Ethiopian economy not just because it constitutes almost half of the GDP but also
because more than 85%of the population still depend on it for their livelihood. As a result, the
government has given more attention to the development of agriculture. So that they would increasingly
benefit from small plot of land, and surplus labor could increasingly move to industrial sector. However,
the attempt to increase productivity has not yield the expected outcome.

14
 CHAPTER THREE

3, METHODOLOGY.

This chapter presents the results from the descriptive and economic analysis. The descriptive analysis
made up of tools such as mean, maximum, standard deviation, minimum, percentage, frequency and
cumulative frequency. Econometric analysis was carried out to identify the most important factor that
determines wheat productivity and to measure relative importance of significant explanatory variables
on wheat productivity.

3.1 Description of the study area

Zaba Gazo woreda found in western part of South Western region with moderate temperature. The hot
season last for three months from January to March for about 65 degree to 83-degree Fahrenheit.
3.2 Method of data collection
The study is collected by using method of primary data collection method by taking the sample and
asking of them about the selected title and also the study is also conducted by using secondary source
from recorded history about wheat productivity.

3.3 Sample size and sampling techniques

The population of the study consists of small holder farmers who are living in 3 sub-rebels in Angela
keeled. The entire population cannot be considered due to the presence of large number of populations,
time and resource limitation.

The sample size can be calculated using Yak mane's formula

No=n/(1+(e2) *n)

Where No=number of sample size

n=total household in the study area=1190

e=confidence level=0.1

No=1190/ (1+(0.1)21190) =92.2

There are two main techniques of sapling in the research study. These are probability sampling and
non-probability sampling. The study was used simple random sampling techniques, with a homogeneous
population in various aspects, like culture, color and living standard etc.

15
3.4 Data source and data collection tools
The study was collected primary data source. Primary data were collected from rural household farms in
the study area. Using questionnaire and structured interview.

3.5 Data analysis techniques

The methodology the researcher will use simple descriptive and econometric model in presenting and
estimating factors that affect cereal crop (wheat) productivity of small holder farmer in the study area. In
the econometric model the ordinary least square (OLS) estimation technique will use in the form of
multiple linear regression models will specified as follows.

3.6 Multiple regression model specification

This model specified as follows

Yi =α+βjxji +ui

YI=F (Fr, NOLF, NOox, Do, Her, Co, Edu, Gen, Tclw, Age, Is, hlt,)

YI=α+β1fr+β2nolf+β3noox+β4do+β5her+β6co+β7edu+β8gen+β9tclw+β10age+β11is+β12hlt+ui

Where i= 1, 2, 3, ---------------92(sample size)

J = 1, 2, 3---------------12 (number of explanatory variables)

Yi =dependent variable (wheat harvest or wheat yield measures in terms of quintals per hectare)

α=intercept

βj= coefficient of getting independent variable

xji= independent variable

ui= unobserved error or disturbance term.

Wheat (yet): - it is dependent variable simply we get by dividing out per quintal gained from a plot of
land to farm size per hectare use for production of outputs which shows the productivity of small holder
farmers.

Fertilizer (fr): - it is independent variable which captures the amount of fertilizer (both DAP and
UREA) used per kilogram in 2016 cropping seasons. It has estimated to be positive effect on production
of wheat

16
Number of labor force in the household head: - this variable incorporates the active labor force in the
household head. Since our farming system is subsistence farming, so that farmers use their own family
as a labor force and estimated to be positive effect on wheat productivity.

Number of oxen per day (no-ox): - households who use a greater number of oxen per day have better
performance in wheat productivity. Therefore, it has positive effect on wheat yield.

Donkey (do): - it is a dummy variable which takes the value 1 if the households have donkey and 0,
otherwise. It is estimated to be positive effect on wheat yield.

Herbicide (hr): - it is a dummy variable which takes the value 1 if the household uses herbicide 0,
otherwise. This variable estimated to have negative effect on wheat productivity.

Compost (co): - it is a dummy variable which takes the value 1, if the household uses compost 0,
otherwise. Compost is a natural fertilizer which increases productivity without incurring much more
cost. This variable has positive effect on the dependent variable.

Education (Edu): - farmers become more educated they understand and gather information easily.it
estimated to have positive relation with the dependent variable.

Gender (gen): - it is a dummy variable which takes the value 1, if the household head is male 0,
otherwise. males have better performance than females in the production of wheat.

Total cultivated land of wheat production (Tclw): - this variable incorporates the total amount of land
that small holder farmers used for production of wheat. It includes own land, rented from another
household’s land. Farmer who has larger farm land is less productive than farmers with small plot of
land due to efficiency basis. Therefore, this variable is expected to have negative effect on dependent
variable.

Age (age): - old farmers are less productive than young farmers. Therefore, it is expected to have
negative effect on wheat productivity.

Improved seed (is): - it is an explanatory variable farmer use improved seed are more productive than
farmers without improved seed. Therefore, it is expected to have positive effect on the dependent
variable.

Healthy status (hls): - it is a dummy variable which takes value 1, if the households are healthy 0,
unhealthy. It expected to have positive effect on the dependent variable.

17
 4. WORK AND BUDGET PLAN
4.1 WORK PLAN

Table 4.1. Activity Plan

Activity AUGUST SEPTEMBER OCTOBER NOVEMBER

19-21
Specifying the area of the study √
Title selection √

Literature review √
Preparing the proposal √
1st draft proposal √

Data collection √

Conclusion of the finding √

Recommendation √

Submission and presentation the final 

research

18
 Budget plan

Item Unit Amount Unit price Total

Pen 2 2 20 40
Paper Packet 1 200 200
Telephone 1 7 days 15 105
Flesh 1 1 350 350
Internet - 3 days 75 75
Total - - - 770

4 REFERENCE
Adomie etal, (2003, p.390) gender factors in crop farmer accesses to agricultural area of delta state,
Nigeria.

19
Assefa and Adimasie, (1987) Estimation of technical efficiency of small holder farmers and central
highland of Ethiopia.

Asfaw and admassie (2004) the role of education on adoption of chemical fertilizer under
socioeconomic environment in Ethiopia.

BefikaduDegefe and BirhanuNega (2004) Agriculture in Ethiopia and its constraint.

Burton, (2013, p.22) influence of farmers demographic characteristic on environmental behavior.

Camera, etal (2011) impact assessment of women's farmer activity on poverty reduction and food
security.

Chow, Garforth, andCaredey. (2013) farmers experience pluralistic agriculture.

CSA, (central statistical agency of Ethiopia,2006) Agricultural sample survey various editions, Addis
Ababa Ethiopia

CSA, (2008) summery and statistical report of 2007 population and housing census population size by
age and sex.

CSA, (2009) agricultural sampling survey on crop and livestock.

EEA (2006), evaluation of the Ethiopian agricultural Extension with a particular emphasis on
participatory demonstration and training Extension system (PADETTES) Addis Ababa, Ethiopia

FAO (2003) Statically year book FAO Rome, Italy.

Gujarati D.N(2004), Basic econometrics, Fourth edition

Michael.P. Todaro (2003) Economic development 11th edition.

MulatDemeke (2003) Challenges of increasing of food production.

Mohammed and abduquadir, (2011, p.37) comparative analysis of gender involvement in agricultural
production.

Olayemi, (2012, p.137) effect of family size on food security.

T.W Schultz transforming traditional agriculture Yabe university press.

Tecleab adssie, (2013) determinant of cereal crop production in Tigray region.

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 MADDA WALABU UNIVERISITY
COLLEGE OF AGRICULTURAL AND NATURAR RESOURCE
DEPARTMENT OF AGRICULTURAL ECONOMICS

21
 6 APPENDIX
Dear respondents this questioner is prepared to conduct a senior essay for the requirement of bachelor of
art degree in Agricultural economics. The main objective of this questioner is to collect reliable data
about the factors affecting wheat productivity in Zabad Gazo Woreda. Therefore, you respondents are
kindly requested to cooperate for the success of the study by giving the desirable information. Thanks in
advance for your coordination and honest.

1.Gender A, male B, female

2.Age ---------------------------------------
3.Are you literate? A, yes B, no
4.If your answers for question number three is A, what is your level of education?
A, grade 1-4
B, grade 5-8
C, grade 9-10
D, more than grade 10
5.Do you use fertilizer? A, yes B, no
6.If your answer for question number 5 is A, how much kilogram do you use? ---------------------
7.How many labor forces do you have in your family size? --------------------------------------
8.What is the number of oxen per day used to produce wheat? ----------------------------
9.Do you have donkey? A, yes B, no

10.Do you use herbicide A, yes B, no

11.Do you use compost A, yes B, no

12.What is the nature of your land fertility A, fertile B, non-fertile

13. Healthy status A, healthy B, unhealthy

14. How much amount of farm land use to produce wheat? ---------------------------------

15. Do you use improved seed A, yes B, no

16. If your answer for question number 13 is A, how much kilo gram do you use?
----------------------

17. Do you use credit facility A, yes B, no

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 18. How much quintal of wheat did you receive in previous year? ----------------

19. For what purpose do you the farm output?

A, for consumption purpose

B, for market purpose
C, for both consumption and market purpose

20. What are the challenges of wheat production?

A, bad weather
B, low education level

C, smallness of farm size

D, lack of experience

E, lack of access to fertilizer

F, if others mention --------------------------------

21. What do you think the way to solve those problems and increase wheat production? --------

A, providing additional farm land

B, providing sufficient accesses to credit

C, getting training

D, providing sufficient fertilizer

E, if others mention ---------------------

23