DETERMINANTS OF FARMERS PARTICIPATION AND INTENSITY OF PARTICIPATION IN GROUNDNUT COMMERCIALIZATION: EVIDENCE FROM BABILE DISTRICT, OROMIA NATIONAL REGIONAL STATE, ETHIOPIA

Abstract

This study was conducted in Babile district to examine the determinants of farmers’ participation decision and intensity of participation in groundnut commercialization. Cross-sectional research design was used. Two stage random sampling procedures were used for the selection of 160 representative sample households. Using probability proportional to size number of sample size was determined from each 4 representative kebele after Yamane formula was used to determine the total sample size. Semi- structured interview schedule was used for gathering primary data. Descriptive statistics, household commercialization intensity and double hurdle model were used for data analysis. The probit model result reveals that age, education level, distance to the nearest market, land holding size, access to market information and non/off-farm income significantly influence households participation decision in groundnut commercialization while the truncation model result disclose that age, education level, household size, land holding size and frequency of extension contact significantly influence the sample households’ groundnut commercialization intensity. The findings have an implication for all the concerned body and they should have to develop strategies to address the aforementioned factors in order to improve smallholder farmers’ groundnut commercialization.