DETERMINANTS OF SOYA BEAN PRODUCTIVITY THE CASE OF SMALL

HOLDER FARMERS OF TWO SELECTED KEBELES OF ASSOSA WOREDA.

ASSOSA UNIVERSITY
COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

ARESEACH PROPOSAL SUBMITED TO DEPARTMENTS OF ECONOMICS IN

PARTIAL FULFILMENT OF THE REQUERMENT FOR THE AWARD OF
BACHELOR OF ART (BA) DEGREE IN ECONOMICS.

By

EsubalewNigussie

ID No: BER/2016/08

Advisor: Bereket. A, (Msc)

January, 2018

Assosa, Ethiopia
 Acknowledgement

First of all, I would like to praise my almighty GOD for his help and protection by give peace,
health, and other strength to prepare this research proposal. Second I would like to express my
great respect and thanks for my adviser Bereket.A, (Msc), for his valuable advice, comment and
willingness to offer time for discussion and critiquing my thesis work. Lastly I would like to give
my thanks to all of those who have helped in different way during the conduction of this research
proposal.

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 Table of Content

Acknowledgement................................................................................................................i
Acronyms…………………………………………………………………………………………………………………..………………
iii

CHAPTER ONE ...............................................................................................................1

1. INTRODUCTION................................................................................................................1
1.1. Background of the study.......................................................................................................1
1.2. Statement of the problem......................................................................................................2

ii
1.3. Research question.................................................................................................................4
1.4. Objective of the study...............................................................................................................4
1.4.1. General objective...................................................................................................................4
1.4.2. Specific objectives.................................................................................................................4
1.5. Significance of the study..........................................................................................................5
1.6. Scope and limitation of the study.............................................................................................5
CHAPTER TWO.............................................................................................................................6
2. LITERATURE REVIEW............................................................................................................6
2.1. Theoretical literature review.....................................................................................................6
2.1.1 Agriculture..............................................................................................................................6
2.1.2. Meaning of productivity........................................................................................................6
2.1.3. Agricultural productivity.......................................................................................................7
2.1.4. Productivity measures in agriculture.....................................................................................8
2.1.5. Determinants of agricultural productivity.............................................................................9
2.2. Empirical literature review.....................................................................................................10
CHAPTER THREE.......................................................................................................................13
3. METHODOLOGY.............................................................................................................13
3.1. Description of the study area..................................................................................................13
3.2 Data sources and data collection techniques...........................................................................13
3.3 Sampling techniques................................................................................................................13
3.4. Methods of data analysis........................................................................................................14
3.5. Econometric model specification...........................................................................................15
3.6.Time schedule and budget breakdown.........................................................................19

3.6.1 Time schedule..............................................................................................................19

3.6.2 Budget breakdown.......................................................................................................19

Reference.......................................................................................................................................20
Questionery............................................................................................................................23

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Acronym

AWAO Assosaworeda agricultural office

BoFEd Bureau of finance and economic development

CADU Chilalo agricultural development union

CDI-WUR Center of development innovation, Wageningen university and research

CSA Central statistical agency

EAP Economically active person

ECG Evaluation corporation group

EEA Ethiopian economic association

FAO Food association organization

GDP Gross domestic product

HYV High yield variety

MPP Minimum package program

TFP Total factor productivity

WB World Bank

1
 CHAPTER ONE

1. INTRODUCTION

1.1. Background of the study

Agriculture is the main backbone of the world economy. For poorest countries it provides as a
leading source of employment and contributes to the large fraction of their national income (WB,
2011). It is also the predetermining economic activity in developing countries and contributes
half of the total national income. According to the united nation development program, 2010/11
two third of the total population in developing countries leave in rural areas particularly in
Africa. Especially in sub Saharan African countries economy highly depend on agriculture. It
contributes 85% of labor force employment, 50% of GDP, 95% of total export, and 70% of
supply to the countries agroindustry sector and main principal source of food production (Ayele,
2010).

Agriculture is a principal economic activity mainly for developing countries. However, for
developing countries its share to their GDP is smaller. But still they support it through subsides,
through assigning effective farm land ownership right, providing inputs to their small scale
farmers and facilitating agricultural market (Jack,2008).But in developing countries there exists
institutional and economic constraints like poor credit supply, market imperfection and
fragmentation of farm land. As a result productivity reduced (Bhaduri, 2010).The major reason
for low agricultural productivity in less developing countries are the fragmentation of land
holding tenure system, high rent in security tenure, lack of credit, absence of irrigation facility,
full dependent on rainfall, lack of modern technology, and excessive pressure of population on
land (Gatatak, 1994). Ethiopia is an agricultural country with low productivity and dominance of
traditional or subsistence farming activities and the main productive motive directly for
consumption. This means the market supplies of the output is very low (Ghattak, 1994). Because
Ethiopia’s agriculture is affected by periodic drought, soil degradation, caused by deforestation,
over grazing, high level of taxation, and poor infrastructure.

Basically the growth of the economy depends on agriculture and also highly depends on rainfall.
The depression in 1984/85 with a decline of real value added in the agricultural sector by more

2
than 20% and real GDP by 94% are expanded by a serious drought in year 1999 (Birhan, 2004).
But agriculture is the country’s most promising resource. 84.4% of the country’s farming activity
is practiced by small scale rural peasant household farmers (CSA, 2007). Such farmers primarily
produce for their substance and the size of their production unit is small (Abrar, 2004).

Ethiopia is both the center of the origin and the center of the diversity for main crops including
sorghum, teff, coffee, wheat, maze and soya bean (CSA, 2006). The origin of soya bean plant is
obscure, but many botanists believe it was first domesticated in central china, as earlier as 7000
BC. It was serve as food and components of medicine. It is one of the richest and cheapest
sources of protein and is a staple crop in the diet of people and animals in numerous part of the
world (www.Britanica, Inc .com). Soya bean was tentatively tried to produce in Ethiopia in
1950’s. There are favorable conditions for soya bean productivity in southern and western
Ethiopia, which is essential for commercial purpose and subsistence farming. Soya bean is a
short day plant, which is very important oil seed plant and a protein riched plant. It can grow in
all types of soil, but deep fertile loam with good drainage is most suitable for growth (policy
brief developing new value chain for soya bean in Ethiopia). Agriculture is the main economic
activity of Assosa woreda. The major crops produced in Assosa woreda are maize, sorghum,
nug, teff, ground nut, almond, and soya bean. In the study area (assosa), small number of oxen,
almost two, absence of credit facility, low availability of fertilizer, absence of extension service,
and unfertile farm land brings low productivity of soya bean (AWAO, 2018). The researcher is
motivated to deal in soya bean productivity, since the supply of soya bean in the market is not
efficiently exist. All of the societies also not engaged in soya bean production, becouse their
motivation in soya bean productivity is constrained by lack of awareness.

1.2. Statement of the problem

Agricultural output of developing countries is characterized by low productivity, which is more

difficult to attain food self-sufficiency, increasing production size and low level of agricultural
productivity have a critical problem in sub Saharan African countries including Ethiopia.
Particularly million people in Ethiopia are chronically food insecure (CSA, 2015).Even in good
harvest years partly rely on food aid. Food insecurity is situated by widening the gap between
demand and supply of food. It is resulted from increasing population size, variation of climate
access, and instability of product market. Agricultural sector highly depend on rainfall with

3
minimum percent of water supply. Even if the output from the sector is satisfactory has a
general, it is the major contributor of food security (FAO, 2001). Most empirical evidences
indicate that Ethiopia and sub Saharan Africa countries are poor and there is an economy
depends on agriculture. About 85% of population in Ethiopia engaged in the agricultural sector.
It shows that agriculture is the backbone of the country’s economy. But the sector is based on
traditional farming system in most rural people used their own consumption. As result the
production efficiency is low (Ayele K., 2006). According to Ethiopian economic association
gaining in the yield level of cereal crops has not been able to increase for most developing
countries as a whole (EEA, 1995). In Ethiopia small holder farmers are characterized by using
traditional farming tools and practices. This is the reason for the lowest output of agricultural
productivities.

Soya bean, an oil seed produced by small holder farmers using traditional farming system in
Ethiopia. Ethiopia has suitable natural conditions and vast land for investment in soya bean
farming. There are many favorable locations particularly in east and west part of the country
including jimma, bedele, assosa, pawe, harar, shashemene and arisi (Wijnandsetal, 2011). While
the actual yield of soya bean productivity is low (CDI-WUR, 2011). But soya bean is a multi-
purpose crop that offers alternative market potentials for product diversification and value
addition. The crop can use for preparing different kinds of products. The major ones include soya
bean edible oil, oil cake for animal food, soya milk, soya meat, soya chapatti and soya sauce. It is
important when we use it in crop rotation system. It counters effects depletion of plant nutrients
in the soil due you to continuous mono cropping of cereals (CDI-WUR, 2011).

Agriculture is the main economic activities of assosa wereda. The major crops produced in this
woreda are maize, sorghum, teff, nug, ground noot, and soya bean. Even though the woreda has
suitable potential for cereal crops, soil seed crop production, they also experience soya bean
limited use of improved seeds, fertilizer and new technology. Soya bean is one of the dominant
crops produced in Assosa wereda, and it is not only cash crop for farmers who are engaged in
soya bean production (AWAO, 2018). The previous studies are done as a whole of agricultural
productivity. That means in the study area there are dominant crop products like maize, sorghum,
teff, nug, ground noot, and soya bean, they study as a whole.This study will be design to fill

4
some of these gaps by providing some of the information’s in the current period and the past to
solve the problem or determinants of soya bean productivities in the wereda.

. This study well be also based on the previous works of those researchers, which means those
previous studies will be used as a source of reference to this study. This study will be differ from
the previous studies based on first, this study will try to use recent data up to 2017/18. Second
the previous studies ignore factors that affect crop productivity by the use of modern inputs like
improved seed and fertilizer. Thirdly the previous studies done as a whole of agricultural
productivities, but this study will done in a specific agricultural productivity, that means in the
study area there are dominant crops like maize, sorghum, soya bean, teff and nug, but this study
will focus on a specific production activities, which is determinants of soya bean productivities.

1.3. Research question

 What are the major determinants that hinder soya bean productivity?
 How does the productivity of soya bean in the study area?
 How does these determinants determain soya bean productivity?

1.4. Objective of the study

1.4.1. General objective

The general objective of the study is to identify the main determinants of soya bean productivity
in the study area, by specifying economic model. It will be also show the relationship between
soya bean and its determinants.

1.4.2. Specific objectives

 To examine the determinants of soya bean productivity in the study area.

 To estimate soya bean productivity.
 To show the reiationship between soya bean and its determinants.

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1.5. Significance of the study

This paper will help for policy makers to identify easily the determinants of soya bean
productivity. It is also important for policy makers to know the critical factors that could
accelerate soya bean productivity. It may be also used as a source of information for those
researchers, who want to conduct a deeper study in the study area. It is also importance for
farmers to increase their productivity by knowing factors that affect soya bean productivity.

1.6. Scope of the study

Although there are many rural areas that are not study very well, this study will limit its area of
investigation in Assosa woreda, BGRS. This is because to reduce huge time that requires to
study, finance usage. More over cereal crop production is multidimensional and studying all
dimensions is requiring large time and intensive investigation of each crop. There for the
researcher studies only the determinants of soya bean productivity in the specified area.

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 CHAPTER TWO

2. LITERATURE REVIEW

2.1. Theoretical literature review

2.1.1 Agriculture

Agriculture is the science of art of cultivation of soil and rearing of livestock. Agriculture as the
primary economic activity is the major economic activity of the world’s population. More than
60% of people of the world depend on agriculture for its livelihood. This means agriculture is the
main economic and social development background for almost for all countries of the world.
Agricultural products used for daily food consumption, source of raw materials for industrial
input, contribute to country's economic growth, source of income for individual farmers. Being
major determinant of life of the people in the world due attention should be given to agricultural
sector especially to improve the lives of majority engaged in its activity (Gaye, 2004).

The term agriculture has different meaning by different individuals, some said it is farming and
animals husbanding and some may they thing of agribusiness firms. Some agricultural
economists have referred to food and fiber industry when describing the agricultural science.
They also devised rules for making decisions, in an ever changing uncertain economic and
agricultural environment. This rule can be used to make production, consumption, marketing and
financial decisions. By studying the logic of these managerial rules, we can learn low to adjust
managerial decisions to the changing environment in which over economic and agricultural
activity occurs.According to the united nation development program (UNDP) report, 2/3 of the
people living in developing countries are existed in rural areas. Agricultural production is the
main source of subsistence and income for majority of these rural people, many of whom are
small scale farmers which farm their own land, work the land of others as agricultural laborers,
or graze their herds of animals on land which is common property (Oxfam, 1995).

2.1.2. Meaning of productivity

Productivity is commonly defined as a ratio between the output volume and the volume of
inputs. In other words, it measures how efficiently production inputs, such as labor and capital,

7
are being used in an economy to produce a given level of output. Productivity is considered a key
source of economic growth and competitiveness and, as such, is basic statistical information for
many international comparisons and country performance assessments (Paul Krugman, 1994).

Productivity is a measure of the rate at which outputs of goods and services are produced per unit
of input (labor, capital, raw materials, etc.). It is calculated as the ratio of the amount of outputs
produced to some measure of the amount of inputs used. Productivity measures are used at the
level of firms, industries and entire economies. Depending on the context and the selection of
input and output measures, productivity calculations can have different interpretations.
Improving productivity can have connotations of economizing on the use of inputs. for example,
adopting efficient production processes that minimize waste. Equally, improving productivity
can have connotations of yielding more output. For example, using resources in activities or with
technologies that generate more output. Conceptually, productivity is a ‘supply-side’ measure,
capturing technical production relationships between inputs and outputs. But, implicitly, it is
alsoabout the production of goods and services that are desired, valued and in
demand.Productivity can be expressed as a physical measure (for example, number of cars
produced per employee), a monetary measure (for example, thousands of dollars of output per
hour worked), or an index (Paul Krugman, 1994).

2.1.3. Agricultural productivity

The livelihood of a major proportion of population in the developing world is directly or
indirectly connected with agriculture. World Bank reports that 2.5 billion people depend on
agriculture as their main sources of livelihood and among them 1.3 billion people are small
farmers and landless workers. About 75% of all world poor people live in rural areas and 86% of
them work in agricultural sector for their livelihood (ECG, 2011).
Agricultural productivity growth has mired in recent era. The growth of the yield of major food
grains throughout the world is about 1% per year (FAO, 2009a), whereas the recent world
population growth rate is about 1.2%. Land is a scarce resource; expansion of the cultivated area
is not possible in many developing countries (ECG, 2011). Accordingly, the only solution may
be to increase agricultural productivity to meet the future demand for food for the growing
population. Due to the limitation of cultivable fertile land and related inputs, new approach to
increase future productivity growth in agriculture in most parts of the world may be intensive
agricultural growth rather than extensive growth.Therefore, intensification of production and

8
upgrading the inputs or resources use efficiency are significant key strategies along with
diversification (Dixon et al. 2001).
The deviation between exactly possible and actual yields for most crops indicates an immense
potential for increasing food as well as agricultural production by improving productivity
(Zepeda, 2001). FAO expects that in the developing world about 80% increase in food
production will need to come from the increase in yields as well as cropping intensity and only
20% will be obtained from the extension of arable land (FAO, 2009c).
Hence, Intensification is fundamental not only to meet up the ever-increasing demand for food
grains but also to condense deforestation, ecological destruction, and global warming.
Agricultural productivity can play a vital role in economic growth by linking the supply and
demand side (Johnston and Mellor, 1961).
For example, the agricultural sector supplies raw materials for industrial or other non-agricultural
sectors and demands inputs from the modern sectors like science and information technology. In
the demand side, increased agricultural productivity can raise the earnings of the rural population
and thereby it may create more demand for local industrial products (Dethier and Effenberger,
2011).

2.1.4. Productivity measures in agriculture

Agricultural productivity is the measurement of the quantity of agricultural output produced for a
given quantity of input or a set of inputs. There are different ways of defining and measuring
productivity. For instances, the amount of output per unit of input (such as tons of wheat per acre
of land), or an index of numerous outputs divided by an index of numerous inputs (Wiebe,
2003). The quantities of output relative to the quantity of inputs are the conventional measures of
productivity. If output increases at the same rate as inputs, then productivity is unchanged. On
the other hand if the output growth rate exceeds the growth rate in the use of inputs, then
productivity is positive.Two measures are often used. First, partial factor productivity measure,
state the amount of output per unit of a particular input like land or labor, and the second total
factor productivity measure. Most commonly used partial measures are land productivity, i.e.,
yield or output per unit of land, and labor productivity i.e., output per economically active person
(EAP) or per agricultural person-hour (Zepeda, 2001).
Sometimes the indication from partial measures of productivity is not clear enough to show why
production is changing. This is because different factors are responsible for changing the

9
productivity, for example, land or labor productivity can increase due to better and more use of
fertilizer, power tillers, the use of high yielding variety (HYV) and etc. To avoid such kinds of
problems it is better to measure total factor productivity (TFP) to account for the accurate
agricultural productivity. Hence, the measure of multifactor or total factor productivity indicates
total output relative to a more comprehensive metric of all measurable inputs including land,
labor, capital, livestock, chemical fertilizers, pesticides and other purchased inputs (Alston et al.,
2009).
It is worthwhile to note that different productivity measures are used for different purposes. For
example, yield or land productivity is usually used to evaluate the success of new technology. It
is also useful to determine what amount of land is required to meet the future demands of world
food (Wiebe, 2003). Labor productivity is usually used for comparing productivity among
sectors within or across economies (Block, 1994). It also facilitates to determine the incomes and
wellbeing of people engaged in agriculture (Wiebe, 2003). The growth in TFP is usually a
measure of technological advancement that can be ascribed by the development of scientific
agricultural research, enhancing extension services, Agricultural Productivity and Food Security
in the Developing world human capital developments such as education and the development of
infrastructure and government policies (Ahearn et al., 1998).

2.1.5. Determinants of agricultural productivity

In the developed country, production of agriculture has significantly increased with the
proportion of the population in the sector decline. On the other hand the economies of low
income countries of the world are predominantly agrarian with traditional system and extremely
low labor productivity in agricultural sector. Consequently it is better to outline factors affecting
agricultural output especially cereal crop production by using the method of arrangement.
Different authors used different classification schemes of agricultural growth determinant.
Millikan and Hapgood,(1967), divided the determinants of agricultural output. These are
physical input factors, and economic factors. Each of them discussed as follows:
 The physical input factors
The physical input factor further subdivided into non-human (non-labor) physical input and labor
physical inputs. Non labor physical inputs are land, seed, water, fertilizer, pesticide, work
animals, tools, machinery, and power other than animal power. It is the most potent factor. (EEA
2004).

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  The economic factors
The economic factor is the one determinant of soya bean productivity, which is the availability of
credit. The absence of credit facility could become a consequential bottleneck to use the modern
technology (Millikan and Hapgood,1967).

2.2. Empirical literature

Agricultural production in Ethiopia is characterized by severe fluctuation in real and highly

correlated to the overall performance of the economy. Agricultural share of GDP is about 53%
during the dreg and 51.2% under EPRDE. The highest growth rate in Agriculture was achieved
in 1986/7 when it grow by 18.8% while the lowest was achieved in drought year of 1984 of
1984/5 where it declined by 21% (EEA, 2001).
Historically, Ethiopia was a rare exception in Sub-Saharan Africa, because of its special
environmental circumstances, that enabled Ethiopian farmers to increase their productivity, for
example by using ploughs. The beneficial climate in the Highlands of Ethiopia also enabled
irrigation and other advanced agricultural technology. During the imperial period, the
development of the agricultural sector was retarded by a number of factors, including tenancy
and land reform problems, the government's neglect of the agricultural sector (agriculture
received less than 2 percent of budget allocations even though the vast majority of the population
depended on agriculture), low productivity, and lack of technological development. Moreover,
the emperor's inability to implement meaningful land reform perpetuated a system in which
aristocrats and the church owned most of the farmland and in which most farmers were tenants
who had to provide as much as 50% of their crops as rent.
To make matters worse, during the 1972-74 drought and famine the imperial government refused
to assist rural Ethiopians and tried to cover up the crisis by refusing international aid. As a result,
up to 200,000 Ethiopians perished (During the imperial period, the development of the
agricultural sector was retarded by a number of factors, including tenancy and land reform
problems, the government's neglect of the agricultural sector (agriculture received less than
2percent of budget allocations even though the vast majority of the population depended on
agriculture), low productivity, and lack of technological development. Moreover, the emperor's
inability to implement meaningful land reform perpetuated a system in which aristocrats and the
church owned most of the farmland and in which most farmers were tenants who had to provide

11
as much as 50% of their crops as rent. To make matters worse, during the 1972-74 drought and
famine the imperial government refused to assist rural Ethiopians and tried to cover up the crisis
by refusing international aid. As a result, up to 200,000 Ethiopians perished (Thomas and
Laverie berry 2001). Although the issue of land reform was not addressed until the Ethiopian
Reform in 1974, the government had tried to introduce programs to improve the condition of
farmers. In 1971 the Ministry of Agriculture introduced the Minimum Package Program (MPP)
to bring about economic and social changes. The MPP included credit for the purchase of items
such as fertilizers, improved seeds, and pesticides; innovative extension services; the
establishment of cooperatives; and the provision of infrastructure, mainly water supply and all-
weather roads. The program, designed for rural development, was first introduced in a project
called the Chilalo Agricultural Development Union (CADU). The program later facilitated the
establishment of similar internationally supported and financed projects at Ada'aChukkala (just
south of Addis Ababa), Welamo, and Humera. By 1974 the Ministry of Agriculture's Extension
and Project Implementation Department had more than twenty-eight areas with more than 200
extension and marketing centers. Although the MPPs improved the agricultural productivity of
farmers, particularly in the project areas, there were many problems associated with
discrimination against small farmers (because of a restrictive credit system that favored big
landowners) and tenant eviction (Thomas and Laverie berry 2001) Imperial government policy
permitting investors to import fertilizers, pesticides, tractors and combines, and (until 1973) fuel
free of import duties encouraged the rapid expansion of large-scale commercial farming. As a
result, agriculture continued to grow, albeit below the population growth rate. According to the
World Bank, agricultural production increased at an average annual rate of 2.1 percent between
1965 and 1973, while population increased at an average annual rate of 2.6 percent during the
same period (Thomas and Laverie berry 2001).

Agricultural productivity under the Derg continued to decline. According to the World Bank,
agricultural production increased at an average annual rate of 0.6 percent between 1973 and 1980
but then decreased at an average annual rate of 2.1 percent between 1980 and 1987. During the
same period (1973–87), population increased at an average annual rate of 2.6 percent (2.4
percent for 1980-87). The poor performance of agriculture was related to several factors,
including drought; a government policy of controlling prices and the free movement of

12
agricultural products from surplus to deficit areas; the unstable political climate; the dislocation
of the rural community caused by resettlement, villagization, and conscription of young farmers
to meet military obligations; land tenure difficulties and the problem of land fragmentation; the
lack of resources such as farm equipment, better seeds, and fertilizers; and the overall low level
of technology. President Mengistu's 1990 decision to allow free movement of goods, to lift price
controls, and to provide farmers with security of tenure was designed to reverse the decline in
Ethiopia's agricultural sector. There was much debate as to whether or not these reforms were
genuine and how effectively they could be implemented. Nonetheless, agricultural output rose by
an estimated 3 percent in 1990-91, almost certainly in response to the relaxation of government
regulation. This modest increase, however, was not enough to offset a general decrease in GDP
during the same period (Thomas and Laverie berry 2001).

CHAPTER THREE
3. METHODOLOGY

3.1.Description of the study area

Assosa Woreda is found in Benshangul Gumuz Regional State. It is border by Kurmuk and
Homosha in the North, Menge in the North-Easte, OdaBuldigilu in the East, Bambasi in South
East, Mao-Komo special Wereda in South and by Sudan in the West. The elevation of the
wereda is 1570 meter above sea level. It has an estimated land area of 2917.6 km 2, which
accounts for about 5.75% the total land area of the region. The main annual temperature of
assosa is found between 23-25℃, in the lowland and 15-20 ℃, in the midland areas (BoFEd,
2017).
Assosa wereda contains 78 kebeles. Total population in the wereda accounts 104,147, out of this
79, 933 are live in rural areas and 40’505 are males, while the remaining 39,428 are females
from the rural total population (BoFEd, 2017).

13
3.2 Data sources and data collection techniques

The data to be used in the study will collected from primary and secondary sources. Primary data
will collected from Assosa Woreda local farmers and extension workers. Secondary data will be
collected from written materials, books and jornals. The main data collection technique to be
used in this study will self-administered questionnaire.

3.3 Sampling technique and sampling size

The researcher will use stratified sampling to select household respondents from the two kebeles
(strata) Amba 2 and Amba 8. The size of sample household of the study will be calculated by
using a simplified formula provided by Yamane (1967), statistically estimated at 90% confidence
level, degree of freedom of 0.1. Purposive sampling used to select the two kebeles.
n=N/(1+N(e)2)
Where
N = total no. of household in the two kebele
n= the sample size
e =degree of freedom
By using Yamane's (1967) formula which is
N=684
e=10%=0.1
n=684/(1+(684)(0.1)2)
n=684/7.84= 87.245
approximately 87
Then the strata seems like follows
ni=(Ni/N).n
Where, ni = represents the number of observation in the each kebeles
ni=total no. of farm households in each kebele
N=represents the total number of household in the two kebele
n=Total no. of sample size that will be used
Therefore by using this Stratified sampling formula the proportional number of respondents in
each kebeles as follows.
From Amba 2 kebele,

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ni2 = (N2/N)n = (383/684)×87 = 48.7
From Amba 8 kebele
ni8 = (N8/N)n = (301/684)×87= 38.3
n = ni2+ni8 = 48.7 + 38.3 = 87
The main reason for this selection of two kebeles from each kebeles of the assosaworeda is in
terms of their contribution in producing the quality and quantity of soya bean for consumption
income generation.

3.4. Methods of data analysis

The data will be analyzed by using methods of quantitative and qualitative data analysis. To
employ such analysis both descriptive statistics and econometric model will be intensively used
for a given phenomenon.

3.5. Econometric model specification

The model will show the relationship between the productivity of soya bean and its determinants.
The researcher will use the multiple linear regression models because soya bean productivity is
determined by more than one variable.
LnTps = β0+β1fs+β2hha+β3tacs+β4nox+β5fr+β6ims+β7aws+β8exs+β9cr+β10edul+ur
Lntps = The Logarism of total productivity of soya bean
β1fs = family size of farmer
β2hha = household head.
β3tacs =total area cultivated for soya bean production in hectare
β4nox= number of oxen
β5Fr= use of fertilizer of farmers
β6ims=use of improved seed
β7arf= availability of rain fall
β8exs= have extension service
β9cr=use of credit = error term
β10edul=educational level
Dependent variable
Soya bean productivity: is the dependent variable that will be measured by output input ratio and
determined by the independent variables.

15
Independent variables
Number of oxen own: - Oxen are one of basic farm assets and a continuous variable household
use to produce the farm output during the survey period. Farmer who owns more oxen will have
better chance to agricultural productivity than those who have fewer oxen. So it has positive
impact on agricultural productivity (Beyene, 2000).
Total area cultivated: - It is a continuous variable which is the total cultivated area of land for
Soya bean productivity.Ekborm (1998)exclusively include farm size as one of the factors that
determine agricultural productivity. The study by Odhiambo (2003)farther indicates the negative
relationship between farm size and productivity. So as the use of land increase the productivity
will be decrease, other things remains constant.
Fertilizer: - It is a dummy variable that the total amount of chemical fertilizer used by sampled
households to produce farm output. Fertilizers are material that farmers used to increase their
productivity. It is one of land augmenting input that is likely to enhance land productivity.
Studies by Mwabu (1998), Ekborm (1998), and Owuor (1999) have all demonstrated positive
relationship between fertilizer use and productivity. So it implies that increase in fertilizer have
positive relation with productivity.
Family size: - It is a continuous variable, defined as the total number of members living together
during the survey period. The study conducted by Aigbokhan (2008) indicates that the larger the
family size the higher the productivity. There for it has positive relationship with productivity.
Rain fall: - It is continuous variable which measured whether the household have available rain
or not during the farming period. Households those who have available rain fall for crop
production process during the farming period, it increase the farm productivity.
Household Age: - defined as the farm household heads age, is the number of years from the date
of birth to the day of the survey interview date in full year. A research conducted by Aighbkhan
(2008) argued that productivity rises with age as more human capital, both from education and
experience, has been accumulated through years.As age of farmer’s increase they can acquire
more knowledge and experience in farming. It is a dummy variable which the age of farmer 18-
64 takes value (1), and above 64 and below 18 takes value (0). If the age of farmers 18-64, it has
the positive relation with agricultural production, otherwise it has negative relation.

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 Use of Credit: - It is a dummy variable measured in terms of whether at least one member of the
household has received a credit or not during the last 12 month prior to the survey period.
Farmers who have access to credit may overcome their financial constraints and therefore buy
inputs. Farmers without cash and no access to credit will find it very difficult to attain and adopt
new technologies. Credit is very much useful to purchase inputs such as improved seed and other
important inputs hence farmers who have access to credit would have positive effect on crop
production due to use of agricultural inputs (Wolday, 1999).
Improved seed: - It is a dummy variable. It is an important thing that increases the productivity
of crop production. That means the farmers use short season seeds rather than long season seeds.
The study conducted by Birhanu (2017) states as small holder farmers use improved seeds for
farming productivity increase.There for the use of large amount of improved seed increases
agricultural productivity.
Extension service: - It is a dummy variable which measured whether the household used the
extension program or not. The study by Evenon (1998) finds extension service has discernable
impact on productivity. Households those who uses extension service during their farm
production process, it increase their productivity. There use of extension service has positive
effect on farmer’s productivity.

Educational level: - is measured head ofschooling and hence continuous. Using multivariate
analysis Aigbokher (2008) come across that the more educated small holder farmers the higher
the productivity that the farmers will increase their productivity.

3.6. Time schedule and budget breakdown

3.6.1. Time schedulee

NO Activities Months

Oct Nov Dec Jun Feb Mar Apri May Jun

1 Topic selection 

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2 Communicate with adviser 

3 Literature Review 

4 Proposal writing 

5 Submission of proposal 

6 Data collection and analysis 

7 First draft submission 

8 Conclusion and 
recommendation

9 Presentation 

3.6.2. Budget break down

No Item Type of material Quantity Unit price Total price

1 Stationary materials Pen (BIC) 7 5 35

Paper 500 0.30 150

2 print - - - 250

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3 Transportation - - - 110

4 Mobile card - - - 80

5 Internet service - - - 25

6 Other expense - - - 200

7 Copy - - - 90

8 Flash - - - 180

9 Total experience - - - 1120

Reference

Ahearn, M., J. Yee, E. Ball and R. Nehring, (1998).“Agricultural productivity in the United
States”.Resource Economics Division, Economic Research Service, U.S. Department of
Agriculture. Agriculture Information Bulletin no.: 740.

19
Alston, J. M., J. M. Beddow and P.G. Pardey, (2009).“Agricultural Research, Productivity, and
Food Prices in the Long Run”.A recent summary of the evidence. Science 325 (4): 1209–
1210.
Block, S., (1994).“A new view of Agricultural Productivity in Sub-Saharan Africa”.American
Journal of Agricultural Economics, 76 August: 619- 624.
Dethier, J. J. and A. Effenberger, (2011).“Agriculture and Development”.Policy Research
Working Paper 5553. Research Support Unit, Development Economics, World Bank.
Dixon, J., A. Gulliver, and D. Gibbon, (2001). “Farming Systems and Poverty: Improving
Farmers’ Livelihoods in a Changing World”. Rome and Washington, DC: FAO and
World Bank.
ECG (Evaluation Cooperation Group), (2011). “Evaluative Lessons for Agriculture and
Agribusiness”. Paper No.: 3. World Bank, Washington, DC.
EEA [2004] Annual Report on Ethiopia agricultural outputs: Addis Ababa.

EEA 2001 "Characteristic and production of the Ethiopian economy

FAO (2009a). “2050: A Third More Mouths to Feed”. FAO, United Nations.

FAO (2009c).“The Technology Challenge: How to Feed the World 2050,” High-Level Export
Forum, October 12–13, FAO, United Nations.
Johnston, B. F. and J. W. Mellor, (1961).“The Role of Agriculture in Economic
Development”.The American Economic Review 51 (4): 566 – 593.
Paul Krugman, (1994). The Age of Diminishing Expectations

Thomas and Laverie berry (2001) the trend of Ethiopian agriculture sector in the three regimes.
Wiebe, K.(2003). “Linking Land Quality, Agricultural Productivity, and Food
Security”.Resource Economics Division, Economic Research Service, U.S. Department
of Agriculture. Agricultural Economic Report No.: 823.
Zepeda, L. (2001). “Agricultural Investment, Production Capacity and Productivity”.In L.
Zepeda, eds. “AIf there are images in this attachment, they will not be
displayed.
lopment Paper: 148.

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 Questionnery
Assosa University
Department of Economics

Interview schedule:

This questionnaire was designed by third year economics student in Assosa University, College
of Business and Economics in order to fulfill the study in Assosa Woreda. The aim of the study
is to analyze the determinants of soya bean productivity.

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As it is for pure academic purpose telling the truth should not affect you in one or another way.
Yours genuine and honest response is highly regarded for the paper success.

Instructions

No need of writing your name. Indicate your response by putting ‘x’ mark in the space provided.
If the questions are open ended, please write your response on the space provided.

1. Sex of household Male ________ Female_________

2. Age of household _____________

3. Marital status, Single_______ Married_____________ Divorced _____

4. Educational status of household

Illiterate _______ Read and write _______ Primary school and above________

5. How much labor force participates in crop production? A. 1 B. 2-3 C.4-5

D. above. Is that your family or employee? A. Family B. Employee

6. Do you have your own land, yes_____ No__________?

7. If your answer in question 6 is yes, how many hectare of land you cultivated in the previous
crop year? A. less than 1 hectare B.1 up to 2 hectare

C. greater than 2 hectare

8. Do you use fertilizer in your farm practice? Yes_____ No_________

9. If your answer in question 8 is yes, when did you start using fertilizer? since_______

10. Do you agree that adoption of fertilizer improve your agricultural productivity A. I do not
agree B. I agree C. I strongly agree

11. How many quintal of fertilizer are used and apply per hectare of land in the previous crop
year on average? -------------------------

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12. How many yields per hectare of land are produced before adopting of fertilizer?
---------------------------

13. How many yield per hectare of land are produced after Adopting of fertilizer?______

Yield before adopt Amount of fertilizer used Yield produced after

adopt(Quintal/hectare)
(Quintal/hectare) (Kilogram/hectare)

How do you evaluate the yield produced before and after adopting fertilizer?

Increasing______ Decreasing__________ Constant___________

14. What you say about the profitability of adopting fertilizer?

Very high_______ high ___________ moderate __________ low ______

15. Do you get training from agricultural office? Yes__________ No__________

If yes, is that the extension service increase your productivity?

16. Do you get access of credit? Yes_______ No___________

17. If yes how much? __________ and what are the source of credit? ___________

______________________________________________________________________________

18. Is that access to credit increase your productivity? Yes_________ No______

19. What type and how many quintals of improved seeds do you use in the previous crop year?

_________________________________________________________________________

20. What is the contribution of using improved seeds in your productivity?

Good___________ Bad_____________

21. What type of phalloughing system use? Traditional ____ Modern______

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22. Is the amount of soya bean production through year decrease or increase? Why?

23. What are the challenges of soya bean production? ______________________________

____________________________________________________________________________

24. How many yields per hectare of land are produced in the previous crop year?

__________________________________________________________

የአሶሳ ዩኒቨርሲቲ
የቢዝነስና ኢኮኖሚክስ ኮሌጅ
የኢኮኖሚክስ ትምህርት ክፍል
መጠይቅ፡-
ይህ መጠይቅ የተዘጋጀው በአሶሳ ዩኒቨርሲቲ የቢዝነስና ኢኮኖሚክስ ኮሌጅ ኢኮኖሚክስ ትምህርት ክፍል
ተመራቂ ተማሪ የመጀመሪያ ዲግሪ ማጠናቀቂያ ጥናታዊ ፅሁፍ ለማዘጋጀት ነው፡፡የጥናቱ አላማ በአሶሳ ወረዳ
በአኩሪ አተር ምረት ላይ በተመለከተ መረጃን ለማሰባስብ ነው፡፡ይህ ጥናትየሚካሄደው እናንተ በምትስጡኝ
ምላሸና ጠቃሚ መረጃዎች ሲሆን መጠይቁ ከአኩሪ አተር ምረት ጋር ተያያዥነት ያላቸው ጉዳዩችን ግንዛቤ
ለማግኝት ይረዳል፡፡ ለጥናቱ በስኬት መጠናቀቅም የእርስዎ ታማኝነትና ትዕግስት የተሞለበት ምለሽ እጅግ
ወሳኝ በመሆኑ እያንዳንዱን ጥያቄ በጥንቃቄ እንዲሞሉልኝ በእክብሮት እጠይቃለሁ። የሚስጡኝ መረጃዎች
በሙሉ ለጥናቴ አገልግሎት ብቻ እንደሚውል አረጋግጥለዎታለሁ። ለጥያቄው ትትክክለኛ መልስዎን ከፊት ለፊት

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 በተቀመጡ ሳጥኖች የ“√”ምልክት በማድረግና ለባዶ ቦታዎች ግልፅ የሆነ ፅሁፍ በመፃፍ
ይተባበሩኝ።ለፍቃደኝነትዎ በቅድሚያ አመሰግናለሁ!!!አጠቃላይ መረጃ 1. የቤተስብ መረጃሀ. የቤተስብ
አባል ስም------------------------------------------------?
ለ. ፃታ---------- ?ሐ. ሀላፊነት ሀላፊ ……..........? አባል……..........?መ. እድሜ
------------------------------------- ?ሠ. የጋብቻ ሁኔታ ያገባ ………............?
ያላገባ……….......?
ረ. የት/ት ደረጃ ያልተማረ………...? የተማረ……….? ማንበብና መፃፍ………..? 1 ኛ ደረጃ
ት/ት…………….?2.ምን ያህል ቤተስብ አለዎት-----------------------------?3.ምን ያህል ጥማድ መሬት
አለዎት-------------------------?4.የታረስ መሬት ስፍት በጥማድ -------------------------------?5.ጥያቄ
ቁጥር “4”ን መስረት በማድረግ ምን ያህል ጥማድ መሬት ለስንዴ ምርትአርሰዎታል-----------------------?6.
አዳዲስ ቴክኖሎጅዎችን ይጠቀማሉ (የግብርና ግብአቶችን) ማደበሪያና ምርጥ ዘር -----------------------?ሀ.ተጠቃሚ
ከሆኑ ምን ያህል ኩንታል ግብአት ይጠቀማሉ-------------------------?ለ. ተጠቃሚ ካልሆኑ ምክንያቱ ምንድን ነው?
በእርሻ ወቅት ላይ የግብአቶች እጥረት………. ? የግብአቶች ዋጋ መወደድ………….?ግብአቶችን በብድር መልክ
አለመቅረባችው ……………?ግብአቶችን ለመግዛት የአቅም እጥረት …………………..?ሐ.ምን ያህል ምርት
በማዳበሪያ ያገኛሉ---------------------------------?መ .ምን ያህሉን ለፍጆታ
ያውሉታል----------------------------------------?ሠ. ምን ያህል ኪ.ግ ይሸጣሉ ወይም ለገበያ
ያቀርባሉ----------------------------- ?7. የእርስዎ ቤተስብ ማናቸውንም አይነት ምክር ከመንግስትና መንግስታዊ
ካልሆኑ ድርጅቶችይቀበላሉ----------------?ሀ. ከተቀበሉ ያገኙት ጥቅም ምንድን ነው
--------------------------------------------?8. ለእርሻ አገልግሎት የሚውሉ ምን ያህል በሬዎች
አለዎት-----------------------?ሀ. እንዴት ነው ምርትዎን ማምረት የሚችሉት
--------------------------------------?9. የብድር አገልግሎት ተጠቃሚ
ነዎት--------------------------------------------?ሀ. ምክንያትዎ ምንድን ነው
---------------------------------------------
10. የብድር አገልግሎት ተጠቃሚ ከሆኑ ለስንዴ ምርት የሚያውሉት የብድር መጠን ምን ያህል ነው
----------------------------------?
11. ዋናው ገበያ ከቤትዎ በቅርብ እርቀት ምን ያህል ኪ. ሜ ወይም ሰዓት
ይወስዳል--------------------------------?
12.ወንዞችን በመጥለፍ ወደ ማሳዎ ያስገባሉ………………………… ?ለሰጡኝ መረጃ ከልብ አመሰግናለሁ!!!

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