Determinants of Participation and Extent of Participation in Contract Farming Among Smallholder Malt Barley Farmers in Oromia Region, Ethiopia: A Double Hurdle Approach

Abstract

The study examined contract farming participation intensity determinants among small-scale malt barley farmers in the Arsi Highlands, Oromia Region, Ethiopia. Data was gathered from 384 sample respondents using a multistage sampling procedure. Age, livestock ownership, crop output, price, advice service, cooperative membership, and credit were found to be major determinants of probability of contract farming participation. However, total land size and farming experience negatively determined the likelihood of participation in contract farming. The contract participation intensity was defined by educational level, landholding size, production selling price, amount of fertilizer applied, and off-farm income. It is discovered that smallholder producers of malt barley are increasingly drawn to contract farming. It is anticipated that the trend will continue, bringing about more awareness of the advantages of contract farming as well as better access to and utilization of agricultural input supplies.