Small-scale Irrigation Scheme Utilization and Farmers’ Willingness to Pay for Irrigation Water: The Case of Bosha-01 Irrigation Scheme in Central Oromia

Irrigated agriculture plays a crucial role in enhancing domestic food security and alleviating poverty. However, many of the small-scale irrigation schemes in Ethiopia are operating below their full potential. In several schemes, there is a noticeable gap between the designed potential and the actual area irrigated. This discrepancy is primarily due to poor management and a lack of regular maintenance. Furthermore, the absence of irrigation service fees, which would allow farmers to fund routine maintenance and ensure the sustainability of the irrigation schemes, has been a significant obstacle. This study aimed to identify the factors influencing household participation in small-scale irrigation schemes, the intensity of irrigation water use, and farmers’ willingness to pay for water use. It was conducted in the Arsi Zone, Tiyo District, focusing on the Bosha-01 small-scale irrigation scheme, with a sample of 150 households. The results of the two-limit Tobit model indicated that several factors significantly influenced participation and water use intensity, including the household’s education level, involvement in irrigation scheme planning, access to extension services, and the distance from the main road. Additionally, the study found that the mean willingness to pay (WTP) for irrigation water use was 155.33 Birr per 0.25 hectares per year. The censored regression model revealed that family size, income from crop production, and the household’s perception of water sufficiency significantly affected farmers’ WTP. The findings also highlighted that the irrigation scheme was underperforming, poorly managed, and lacked any system for charging users or requiring contributions for maintenance. Based on these results, the study recommends several policy measures, including strengthening institutional frameworks, coordinating actions among stakeholders, training farmers to encourage greater participation in scheme maintenance, developing social services, and improving farmers' incomes. These measures are essential to ensure the sustainable utilization of irrigation schemes.