Factors affecting farmers’ hiring decisions on agricultural mechanization services: A case study in Ethiopia

Yohannes Mekonnen Tesema, Paulos Asrat and Dawit Tsegaye Sisay

Cogent Economics & Finance, 2023, vol. 11, issue 2, 2225328

Abstract: Using appropriate agricultural mechanization services is critical to increasing agricultural productivity and ensuring food security. A large portion of Ethiopian farmers have no access to agricultural mechanization services, including tractors, combine harvesters, and threshers. There are several factors responsible for the limited use of agricultural mechanization services in Ethiopia. The objective of this study was to investigate the key factors that determine smallholder farmers’ decisions in hiring tractor and combine harvester services in the Debre Elias district of the Amhara region of Ethiopia. A multistage sampling technique was used to collect data from 133 respondents. Data collection techniques included structured interviews and focus group discussions. Descriptive statistics and a binary logistic model were employed to analyze the data. The findings showed that promotion and support from different organizations, including the government and development partners, are the main factors that influence farmers’ decisions to hire mechanization services. The results also revealed that economically active family labor, off-farm income, number of oxen, goal of farming, and institutional influence are the main factors that significantly influence farmers’ decisions about hiring tractor services in the study area. Harvesting labor costs and weather uncertainty were discovered to be the factors that positively and significantly influenced the farmers’ hiring decisions for combine harvester services. It is important to create awareness among farmers about agricultural mechanization services. Systematic support for both private machinery service providers and cooperative unions is needed to improve mechanization services for farmers in the area.

Date: 2023
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DOI: 10.1080/23322039.2023.2225328

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