Cost-Benefit Analysis of Cultivating Three Major Crops and Its Implication to Agricultural Extension Service: A Case Study in North-West Ethiopia

Abstract

The aim of this study is to conduct cost-benefit analysis of major crops-maize, wheat, and te.fftargeted by agricultural extension service in North-West Ethiopia. Results reveal that Return On Investment (ROI) of major crops ranges from marginal to nil. However, ROI of maize is relatively better than te.ff and wheat. On average agricultural extension program participants generate 37.89 Ethiopian Birr from every 100 Birr invested for maize production, whereas ROI for te.ffis about 3 Birr and even further worse to wheat which has incurred a loss. Therefore, to make the crop production profitable, the current agricultural extension service should give consideration to the associated production costs and introducing affordable labor saving farm technologies remain important.