2025/02/01 by Tsegazeab Gebremariam Yihdego, Yihdego, Tsegazeab Gebremariam, Gebremeskel Berhane Tesfay +1
Agricultural and Biological Sciences · Economics, Econometrics and Finance · #Agricultural Innovations and Practices #Fisheries and Aquaculture Studies #Microfinance and Financial Inclusion
paper · doi:10.71624/bvenax59
Irrigation plays a vital role in enhancing agricultural productivity, reducing poverty, and supporting rural livelihoods (Lipton et al., 2004). This study investigates the adoption of micro-irrigation and its impact on rural household welfare through an income-based analysis, ensuring farmers' anonymity and validating survey methods via pilot testing. Data was collected from a cross-sectional household survey in four kebeles of Bambasi Woreda, employing multistage sampling to randomly select 383 respondents, including 169 micro-irrigation adopters and 214 controls. Secondary data were sourced from regional agriculture bureaus and other relevant organizations to complement primary data. Descriptive statistics and econometric models, including the probit model and propensity score matching, were utilized to assess empirical effects, while the Foster-Greer-Thorbecke index analyzed poverty status. Results indicate that household gender and distance to irrigation negatively impact micro-irrigation adoption, whereas age, education, family size, non-farm participation, access to irrigation water, contact frequency with development agents, and total livestock units positively influence adoption likelihood. The average treatment effect on the treated (ATT) estimates shows that micro-irrigation adopters earn an average income of 14,451.68 ETB, compared to 14,392 ETB for non-adopters. Consistent positive ATT across matching algorithms supports the Random Utility Model (RUM), suggesting that perceived utility from increased income outweighs adoption costs. The Foster-Greer-Thorbecke analysis reveals that 35.5% of micro-irrigation users fall below the poverty line, compared to 67.4% of non-adopters. The poverty severity gap index indicates that users experience 31.9% less severe poverty than non-users. Thus, enhancing micro-irrigation schemes is essential for improving community welfare.