Rural Road Transport and its Effects on Smallholder Farmers’ Agricultural Productivity and Marketing: the Case of Horro Guduru Wollega Zone, Western Ethiopia.
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2020-03
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Addis Ababa University
Abstract
Lack of decent access to rural transport infrastructure is often considered as the root cause of low agricultural productivity among smallholder farmers of Ethiopia. The overall objective of this study is to assess the effect of rural transport infrastructure on smallholder farmers' agricultural productivity in Horro Guduru Wollega Zone, with a particular focus on its availability, accessibility, affordability, and quality as well as its effect on smallholder farmers' purchased input use intensification, output market participation, and post-harvest loss. To attain the fundamental aim of this study, the necessary data were collected from both primary and secondary sources. The primary data collection was based on intensive and frequent fieldwork in four districts of the study area. A multistage simple random sampling technique was used to select 500 sample smallholder farmers. A purposive sampling technique was used to select FGD and KII participants. Household sample survey, focus group discussion, key informant interview, and field observation were the most important means of generating primary data. Secondary data were obtained from a range of governmental organizations of which the most important ones were zonal and district level agricultural and rural transport office administrations. Oromiya Bureau of Finance Economic Development and Central Statistical Authority were also essential data sources for this study. To achieve the intended goal of the study, different statistical techniques, models, theories, and indices were used. Hierarchical multiple regression was used to see the total variation in purchased input use that can be explained by rural transport infrastructure-related variables. Pearson product-moment correlation was used to assess the association between distance to all-weather road and purchased input use. Important factors determining smallholder farmers' probability and intensity of output market participation were characterized by a two-step double-hurdle model. In the first step of the double-hurdle model, probit regression was used to asses factors that determine the binary decision of whether to participate or not in the cereal output market. In the second step of the double-hurdle model, a truncated regression model was used to identify factors that determine the intensity of cereal output market participation. One-way ANOVA and Bonferroni's post hoc tests were conducted to compare the effect of distance to all-weather road, district dummies or location dummies and agro-ecological conditions on the intensity of crop output market participation of smallholder farmers. Likert scale assessment was used to measure smallholder farmers' perception of the severity of farm-level post-harvest loss causing factors. The Tobit model was used to identify factors influencing the extent of farm-level crop post-harvest losses. Stepwise multiple regression was used to identify important rural transport-related variables that predict the agricultural productivity of smallholder farmers.
The results of the analyses reveals that farmers' purchased input use was found to be significantly and negatively related to distance to a major market, distance to all-weather road, distance to farm plot, transport cost, and size of landholding. On the other hand farmers' purchased input use was significantly and positively related to family size, off-farm income, membership in agricultural cooperative, being in Horro district, having an animal cart, and access to a good road. Furthermore, the result showed that rural transport infrastructure-related variables contributed 13.3% to the prediction of farmers' purchased input use over and above the remaining predictors. Livestock ownership, road quality, cooperative membership, extension visit, production level, and ownership of radio, mobile phone and television had a statistically significant influence on a binary decision (probability) of output market participation at less than 0.05 significance level. Whereas, distance to the nearest market, transport cost, production level, off-farm income, household size and time spent selling crop influenced the intensity of output market participation at less than 0.05 significance level. One way ANOVA results also showed that output market participation intensity of smallholder farmers differs based on their distance to all-weather road, district location, and agro-ecological conditions. The Likert scale assessment result revealed that pests (52%), traditional storage facilities (45%), insufficient transportation (38%), bad weather condition (30%), wild animals (21%) and poor marketing coordination (17%) were identified as farmer level crop post-harvest loss causing factors in order of severity. The Tobit model results concerning the marginal effects of the independent variables showed that distance to the nearest market center, transport cost, distance to all-weather road, distance to farm plot, educational status, access to credit, labor reciprocity, crop price condition, storage facilities, and tropical livestock unit were found to be significant predictors of the extent of farm-level crop post-harvest losses at less than 0.05 significance level. The result of stepwise multiple regression analysis revealed that distance to the major market is important in predicting agricultural productivity of smallholder farmers at 5% levels of probability in Abe Dongoro, Amuru, and Hababo Guduru districts. The qualitative analysis results of focus group discussions, in-depth interviews, and observations indicated that women in men headed households do not have the right to control and mobilize local transport modes, and they typically control and mobilize such resources if they are female-headed household. The results suggest that policies and priorities aimed at improving the rural road infrastructure, market information systems, access to rural transportation services, strengthening farmer cooperative associations and enhancing smallholder asset accumulation are vital to prevent barriers to smallholder farmers' input and output market participation and to enhance their agricultural productivity. To reduce farm-level post-harvest losses and increase farmers' productivity, the result of this research also calls for sound policies and strategies that encourage investment in transport infrastructure and improved rural transport services, formation, and strengthening of farmers' cooperative organizations, farm labor exchange arrangements as a form of indigenous knowledge system, better endowments of livestock resources, development of local market centers and improved storage facilities. To ease rural transport burdens of smallholder farmers in general and rural women, in particular, greater consideration needs to be given to interventions in intermediate means of transport and other load reducing measures.
Keywords: Agricultural productivity; Double-hurdle model; Gender differences; Market participation; Post-harvest loss; Purchased input use; Rural transport; smallholder farmer;Tobit model.
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Keywords
Agricultural productivity; Double-hurdle model; Gender differences; Market participation; Post-harvest loss; Purchased input use; Rural transport; smallholder farmer;Tobit model