A double hurdle estimation of crop diversification decisions by smallholder wheat farmers in Sinana District, Bale Zone, Ethiopia

Abstract

Abstract Background Ethiopia is heterogeneous in agro-ecological, social, and economic conditions. In such heterogeneous environment, crop production needs to be diversified to meet household consumption and market needs. This study analyzed determinants of crop diversification in wheat dominant producer rural households in Ethiopia’s Sinana District of the Oromia Regional State. The study utilized a structured survey of 384 households, and both inferential and descriptive statistics were employed to analyze the data. A Cragg’s double hurdle model was applied to identify factors influencing decision and the extent of crop diversification. Results We found that decision to crop diversification was positively associated with household size, access to fertile farm plots, and access to extension services and negatively associated with age of household head, and participation in off/non-farm activities. The extent of crop diversification is positively associated with access to extension services, labor availability, membership to farmers cooperatives, and distance to market. Conclusions These findings support the need for resources to strengthen available extension packages, support existing farmers’ cooperatives, and develop rural infrastructures in order to improve the smallholder farmers’ extent of crop diversifications.