Abstract

This study aims to analyze effects of adoption of motorized water pump on household farm income of smallholder farmers in Mirab Abaya and Arba Minch Zuria Woreda. The total sample size (n=196) was purposively selected from two Woredas and five Kebeles. Descriptive analysis, inferential analysis and Heckman two-stage mode were employed for data analysis. The ordinary least squares (OLS) model result revealed that among the 12 explanatory variables included in the model, four had significant effect on the household annual gross farm income. A unit increase in irrigated land of a household increases annual gross farm income of the households by Birr 6620.9 at 5% significance level. Adoption of motorized water pump has a positive effect on household annual gross farm income. The annual gross farm income of adopter households was higher by Birr 18555.35 than non-adopter households. Market distance and market information is found to influence income and hence well-being, significantly. The results indicated that a 1 km increase in distance of commodity supply market decreases annual gross farm income of farm households by Birr 3992.8 at 1% significance level. Male household heads had obtained significantly higher income compared to female household heads.

Key words: Water pump, farm income, T-test, Chi-square, ordinary least squares (OLS), Heckman two-stage.