The role of Sasakawa global 2000 project credit system in the adoption of improved wheat technologies by smallholder farmers in Ethiopia: the case of Hetosa District
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Date
1999
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Sokoine University of Agriculture
Abstract
The general objective of this study was to examine the role of SG-2000 project credit system in the adoption of improved wheat technologies by smallholder farmers in Hetosa District. The specific objectives of the study were: (i) to identify wheat technologies that have been adopted as a result of the credit system, (ii) to assess the effect of credit system on the adoption of wheat technologies, and (iii) to assess farmers' and extension agents' perceptions on the SG-2000 credit system.The design of this study was a cross-sectional survey, which involved collecting data at one point in time from a selected sample of respondents. Data were collected using an interview schedule and a questionnaire supported by personal observation, informal discussion and informal interviews with key informants. A simple random sample of 50 and 60 respondents was picked from SG-2000 and non-SG-2000 farmers respectively (using a table of random numbers) to form a sample size of 110. The results (of this study) show that wheat technologies such as wheat varieties kubsa and wabe; proper land preparation; DAP and urea fertilizers; and 2,4-D (U-46) herbicide were adopted by the majority of farmers. Out of these adopted wheat technologies, urea fertilizer and 2,4-D (U-46) herbicide were adopted by smallholder farmers as a result of SG-2000 credit system. The analysis of the data revealed that the SG-2000 credit system had a significant effect
on the adherence to recommended rates of wheat technologies (DAP and urea fertilizers and 2,4-D or U-46 herbicide), on the use (expansion) of urea fertilizer and 2,4-D herbicide and on the wheat yields per hectare. The results of Chi-square statistical test for relationship between the involvement in SG-2000 credit system and the following: (a) the adoption of the recommended rates of fertilizers (DAP and UREA), and herbicide (2,4-D or U-46); (b) percentage of wheat area in which urea fertilizer and 2,4-D herbicide were applied in relation to farmers total wheat land; and (c) wheat yield per hectare were found to be statistically significant. Farmers perceptions on SG-2000 credit system were that: SG 2000 credit system is effective in making of credit inputs (like improved seeds, fertilizers and herbicides) available on time, provides regular supervision, has less bureaucratic procedures for credit provision, and helpful in adoption of wheat technologies. However, farmers were not happy with the inflexibility of SG-2000 in some of the conditions (such as amount of down payment, size of EMTP) for obtaining credit. It was found out that the down payment conditions put forward by SG-2000 only favoured well-to-do farmers and not poor ones. Hence this enhances the equity gap. The extension workers' perception on SG-2000 credit system indicated that the credit system assisted farmers in the adoption of wheat technologies. However, the following were found to be the weaknesses of the SG-2000 credit system: involvement of extension workers in input distribution and credit repayment collection, lack of regular training for extension workers, low involvement of relatively poor farmers and lack of specific recommendations for wheat technologies (eg urea fertilizer) for various locations. Recommendations pertaining to this study are provided in chapter five.
Description
Dissertation
Keywords
Wheat technologies, Extension system, Credit system, Ethiopia