FACTORS AFFECTING FARMERS’ HIRING DECISION ON AGRICULTURAL MECHANIZATION SERVICES: A CASE STUDY IN DEBRE ELIAS WOREDA, EAST GOJAM ZONE, ETHIOPIA

Abstract

In Ethiopia, improving smallholder farmers’ access to mechanization technologies through service provider scheme is being supported and promoted in the national agricultural mechanization strategy of the country. Although the use of agricultural mechanization has been increasing in the past years, hiring of the service is still limited both in terms of the types of mechanization technologies and the geographical coverage. Different factors affect the hiring decision of smallholder farmers. Thus, the main objective of this research was to analyze the factors influencing smallholder farmers’ decision on hiring tractor and/or combine harvester mechanization services. The study was carried out in 2020/21 at Debre Elias woreda in East Gojam zone of the Amhara national regional state, Ethiopia. A formal survey which involved a two-stage sampling procedure was used to select farmers from three kebeles. Using random sample techniques, the study selected a total of 133 household farmers. Of which, 52 hired tractor ploughing service and 78 hired combine harvester service. Descriptive statistical tools were employed to analyze the level of usage of mechanization services. In addition, Binary Logistic Regression Analysis was applied to identify factors affecting the hiring decision of smallholder farmers for agricultural mechanization services. Results showed that the number of economically active labour force, number of oxen, land size, goal of farming, off-farm income, and institutional factors significantly affected farmers’ tractor hiring decisions. The result also showed that factors like labour cost and weather uncertainty were statistically significant to influence the hiring decision of farmers’ for combine harvesters. In the study area, mechanization services were mainly provided by private contractors. Based on the findings, government has a big role in influencing the hiring decision through its extension system. Financial credit must be made available for hiring mechanization services. To increase accessibility of mechanization technologies, government should provide incentives and subsidize the cost of acquiring machineries and equipment. Training and advise through the extension system as well as applying ICT to minimize the searching and timely availability of services are recommended.