THE EFFECT OF THE EXPANSION AND OUTSOURCING OF SUGARECANE PRODUCTON ON THE FARMERS’ LAND IN IMPROVING THE INCOME OF THE HOUSEHOLDS

Abstract

The government of Ethiopia has developed a Growth and Transformation Plan and strategy which encompass different development programs including the agricultural sector for five years. From the agricultural sector, Sugarcane production on 85,333 ha of land to produce beyond 800,000 tones annually through developing new land expansion and outsourcing of the existing Sugarcane Production Estate farms by the end of 2015 as part of the plan. To this effect, a study was conducted to assess the effect of the expansion and outsourcing of sugarcane production on the farmers’ livelihood as the Case study in Boset Woreda , East Shewa Zone of Oromia Regional State Ethiopia. A simple random sampling method was used to collect primary data from one kebele out of four, three extension agents out of seven Woreda Administrator, farmers and women, Wonji Sugar Growers Cooperatives and Wonj Sugar Cane Estate Farm Planning. Interview was done with three extension agents, Woreda Administrator while group discussion was made with members of farmers and women associations and Wonji Sugar Growers Cooperatives. Secondary data was collected from Wonji Sugar Growers Cooperatives. The Data collected was analyzed with descriptive statistics. The study reveled that the farmers annual net income from grains production on their own same size plot of land was better than the annual income generated from the newly government driven approach of expansion of Sugarcane production on farmers land. The annual farm household income generated from maize and chickpeas production was 270% times larger than the income produced from outsourcing of sugarcane production on farmers the same land, the 20% increment of expansion of sugarcane production on farmers land had lead also to reduce 6% the previous annual income of farmers generated from grains such as Teff (Eragrotis teff). In addition, the program decreased the availability of crop residues and farm land forestry used as animal fodder, energy source for household purpose and construction, shortened the grazing land which affected live stock production, limited land use right and displacement of farmers. It was also found that 80% of the responds do not support the outsourcing program.