Abstract

          This paper was the first to use nationally representative data from the Agricultural Sample Surveys of Ethiopia to examine the factors affecting the adoption of the fertilizer-seed technology “package” promoted by Ethiopia’s government. We used a double hurdle model to analyze fertilizer adoption among four major cereal crops (barley, maize, teff, and wheat). This model allowed us to identify factors affecting farmers’ access to fertilizer and factors affecting fertilizer demand conditional to input access. Extension was proven to have the biggest impact on fertilizer adoption. We found that knowledge required to adopt new technology represented a high cost for farmers. In addition to extension, other factors that could reduce the cost to access knowledge include farmers’ knowledge and skills in cereal production, risk aversion behavior, household wealth and land fragmentation. Substantial yield gain in maize and teff could be achieved from locally tailored extension packages.

Key words: Technology adoption, double hurdle model, Ethiopia, fertilizer, cereal.

JEL Codes: O33, O38, Q16, Q18.