IMPACT OF SMALL SCALE IRRIGATION ON HOUSEHOLD INCOME: IN CASE OF MESKAN WOREDA, CENTRAL ETHIOPIA

Abstract

This study investigates the impact of small scale irrigation on household income by taking cross-sectional data obtained from Meskan Woreda, Misrak Guraghe Zone of Central Ethiopia. The study aimed at assessing the impact of small scale irrigation on household's income. Data for this study were collected from both primary and secondary sources. A sample of 372 households (120 households were user group whereas, 252households were non-user group) from four kebeles was selected using multistage simple random sampling. The data were analyzed by using a combination of both descriptive statistics and econometric model such as, (PSM) were employed to analyze data. By applying a propensity score matching technique, the study found that the participation of small scale irrigation has increased the net income of user households by 10.65% per annum compared to non-user households. The estimates of the propensity score matching of the logit model result showed that Access to Extension Services, Livestock Holding, farming experience and Sex of the respondent affects households’ probability of participation in small scale irrigation have positive and statistically affected the income of small scale irrigation at 1% and 10% significance level. While, more precisely land holding size, Dependency Ratio and Age of household head affect households’ probability of participation in small scale irrigation have negative and significant effect on income of small scale irrigation participation. The estimated results revealed that households, who owned larger land holding size, get technical advice, training or participated on field demonstrations by taking agricultural extension services, Livestock Holding and farming experience were more likely to benefit from the use of small scale irrigation, ceteris paribus. Accordingly, the result revealed that the most important small scale irrigation practice designed to increase production and productivity which reduces risk related with rainfall variability and increasing income of rural farm households. Hence, overall it can be concluded that participation in the small-scale irrigation has positive effect on most of the household income and that an expansion of small scale irrigation schemes there by improve small holder rural farm household’s annual income. Therefore, policy makers and other stakeholder’s should give due attention in irrigation technology.