Impact of Improved Soybean Variety on Enhancing Productivity and Gross Farm Income of Smallholder Farmers in North Western Ethiopia

Adoption of improved nutrient rich industrial crops have an impact on increasing agricultural productivity, enhancing farm income, improving the nutrition and food security status of smallholder farmer in Ethiopia. The main objective of this study was to determine factors affecting the adoption of improved soybean varieties and to measure its impact on increasing soybean productivity as well as farm income of smallholder farmers in Ethiopia. The study applied logit regression model and propensity score matching methods (PSM) to determine the factors affecting adoption of improved soybean Variety and to measure its impact on the productivity and farm income enhancement at smallholder farmers’ level. Total 167 soybean producers (100 were local soybean producer and 67 were improved soybean producers) were taken using systematic and random sampling methods. The result of logit regression showed that member of any community leadership, training on soybean production; know peoples who planted improved soybean variety and main source of information about the production and marketing of soybean were the main factors determining adoption of improved soybean variety in the study area. The PSM result revealed that adoption of improved soybean variety showed statistically significance and positive effect on the increasing of productivity and farm income of improved soybean variety beneficiary which brought 5% and 15% of increment in income and soybean productivity over the controlled groups respectively. This research suggests that adoptions of improved agricultural technologies are a means of poverty reduction as well as ensuring economic welfare of smallholder farmers. Therefore, governmental authorities, NGOs, policy maker and planners should be focused on the expanding and addressing of these improved agricultural technologies over all the countries. Keywords: Adoption, impact, improved soybean variety, Income, productivity, PSM DOI: 10.7176/JNSR/9-15-04 Publication date: August 31st 201