Smallholder Households' Technology Adoption, Efficiency and Welfare Effect of improved white Haricot Beans Production in East Shewa Zone of South-Eastern Ethiopia

Book excerpt: Doctoral Thesis / Dissertation from the year 2018 in the subject Agrarian Studies, Haramaya University, language: English, abstract: White haricot bean is the major source of cash in domestic and international markets and serves as the cheapest source of protein diet for rural households. The double hurdle model and parametric stochastic frontier model of Cobb Douglass type production and cost functions were used to analyze the determinants of adoption and estimate production and cost efficiency scores, respectively. The adoption study revealed that the two decision tiers are independent and the same or different factors affected the two tiers. The decision to adopt is positively and significantly influenced by the frequency of extension contacts, landholding size, agricultural income, perception of the household heads (about price, contribution to soil fertility and nutritional importance), training, and crop diversification; and negatively by distance to market and form of possession of haricot bean plot (tenure). The intensity of adoption is positively affected by non-farm income, contact with NGOs, and negatively with the number of dependents and form of possession of haricot beans plot (tenure). Technical efficiency is significantly and positively influenced by sex (male=1), membership in farmers cooperatives, education of the family, experience in haricot beans farming, use of certified seeds, income from the farm sector and crop diversification; and negatively affected by age of the households. Allocative efficiency differential is significantly and positively influenced by farming experience and household size; and negatively influenced by sex, distance to market and fragmentation of land. Economic efficiency is significantly and positively affected by the education of the family and household size, and negatively by distance to market and fragmentation of land. Provision of improved extension services, enhancing the perceptions on the important attributes of the crop, training, and better access to market are proposed for the first-hand adoption of white haricot beans while works on the creation of alternative sources of income (non-farm activities) contribute more to the intensity of adoption. Supply of certified seeds, education of the households and family members, and access to resources (credit and other inputs, in particular for female-headed households) are proposed to improve the technical efficiency, allocative and economic efficiencies.