Assessment of Constraints, Opportunities and Income Impacts Associated with Small‐Scale Irrigation in Zebit, Ethiopia

ABSTRACT Small‐scale irrigation represents a highly effective system designed to enhance production and productivity, mitigate risks associated with rainfall variability and increase the income of rural farm households. This study was conducted to analyse small‐scale irrigation impact on household income and assess the challenges and opportunities in Huletejju Enesie District, Northwest Ethiopia. Data from 88 households (34 irrigation users and 54 non‐users) were collected via questionnaires, focus group discussions and secondary sources. Binary logit and propensity score matching models were employed. Five factors significantly influenced irrigation use: family size, active labour, access to extension services, tropical livestock units and the sex of the household head. Opportunities included abundant water resources (rivers, groundwater and Zebit microdam) and government support. Major challenges were land scarcity, capital shortage, limited market access and inadequate transport. Propensity score matching revealed that irrigators earned 24,042 Ethiopian Birrs (ETBs) more annually than non‐irrigators. Small‐scale irrigation significantly enhances household income; however, its full potential is constrained by land scarcity, insufficient capital and challenges related to market access and transportation. Therefore, the expansion of microirrigation must be accompanied by strategies that address these limitations, including enhanced land management, improved access to financial resources and the development of infrastructure.