EFFECT OF SMALL-SCALE IRRIGATION ON THE INCOME OF RURAL FARM HOUSEHOLDS: THE CASE OF LAELAY MAICHEW DISTRICT, CENTRAL TIGRAY, ETHIOPIA

Abstract

Agricultural intensification is presumed to be a necessary pre-condition for the development of the agricultural sector in Ethiopia. To this end, various government and non-governmental organizations (NGOs), among others, initiated small-scale irrigation schemes throughout the country including the Tigray region. Despite these efforts, however, smallholder farmers particularly in the study area are found to be reluctant to participate in small-scale irrigation schemes. This study therefore, assessed the factors that affect smallholder farmers’ participation in small-scale irrigation of the study area. It also explored the effect of participation in small-scale irrigation on the income of rural farm households. A two-stage sampling procedure was used to first select peasant associations and then sample respondents. Descriptive statistics and Heckman’s twostage estimation were used to estimate determinants of small-scale irrigation participation and household income. The analysis revealed that income, gender, access to market information and health condition of households are important determinants for participating in small scale irrigation schemes. The analysis further revealed that irrigation participation, family labor force, livestock ownership and access to market information and credit are positively and significantly associated with household income. Hence, improving rural farm households’ access to market information and health services, is likely to improve participation in irrigation schemes thereby improve small holder farmers income.