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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Income Risk and Crop Production Patterns of Small-Scale Farmers in Eastern Oromiya Region of Ethiopia
Authors:Fufa, Bekabil
Hassan, Rashid M.ISNI
Periodical:Eastern Africa Social Science Research Review (ISSN 1027-1775)
Notes:biblio. refs.
Geographic terms:Ethiopia
Northeast Africa
Subjects:agricultural technology
small farms
Agriculture, Natural Resources and the Environment
Development and Technology
Economics and Trade
Politics and Government
Agriculture, Agronomy, Forestry
Farms, Small
agricultural productivity
Quadratic programming
Farm risks
External link:http://muse.jhu.edu/journals/eastern_africa_social_science_research_review/v022/22.1fufa.pdf
Abstract:Income risk associated with crop production was analysed using the Quadratic Risk Programming Model for users and nonusers of maize production technologies in Dadar district in the East Hararghe zone of Oromiya Regional State in Ethiopia in 2001/2002. The E-V (expected income variance) results revealed that both categories of farmers have the same degree of risk aversion as reflected by the degree of risk aversion coefficient. In addition, the optimization model results showed that improved maize production is associated with higher income risk as no more than the minimum subsistence constraint was chosen under higher degrees of risk aversion. While an increase in fertilizer prices reduced maize area cultivated for package users, the sensitivity analysis results for increases in maize prices showed a substantial rise in the area allocated to improved maize. However, for increased maize prices, area allocated to maize remained at subsistence level for nonusers of the package. The development and promotion of new agricultural technologies needs to take into account the yield and income risks associated with maize production in the area. In addition, expansion of rural road infrastructure, the promotion of post-harvest crop storage technologies and food processing industries should be given emphasis as strategies to stabilize prices and reduce income variability arising from crop production in the area. Bibliogr., notes, sum. [Journal abstract]