Analysis of Factors Affecting Adoption of Vermicomposting Organic Fertilizer and Its Impact on Household’s Income in Holeta District, Oromia National Regional State, Ethiopia

Abstract

Agriculture remains the backbone of Ethiopia’s economy, providing livelihoods for the majority of its population. However, despite its critical importance, the sector is characterized by persistently low productivity. To address this challenge and spur economic growth, the Ethiopian government has prioritized the promotion of value-added compost (VC) organic fertilizer. Nevertheless, the adoption of VC organic fertilizer remains low in many areas, including the Holeta district. This study was conducted to identify the factors influencing the adoption of VC organic fertilizer among farmers in this region. The study utilized both primary and secondary data collected from 174 household head farmers and published and unpublished sources. The analytical framework included descriptive statistics, logistic regression models, and propensity score matching to evaluate the factors influencing adoption and its economic impact. The results revealed that several factors significantly affected farmers' decisions to adopt VC organic fertilizer, including farming experience, farm size, family size, livestock ownership, access to extension services, access to information media, and participation in training programs. Moreover, propensity score matching analysis demonstrated that the adoption of VC organic fertilizer led to an increase in farm income per hectare, ranging from 45,571 ETB to 48,537 ETB. These findings underscore the economic benefits of adopting VC organic fertilizer and highlight the need for targeted interventions. To encourage adoption, the government and other stakeholders need to enhance farmers' access to training, provide robust extension services, and ensure the availability of VC organic fertilizer. Improved access to information about its benefits and usage is also crucial for fostering wider adoption and, ultimately, boosting agricultural productivity and rural incomes.