Does Small‐Scale Irrigation Participation Affect the Income of Households in Ethiopia? Insights From the Horo Guduru Wollega Zone

ABSTRACT Ethiopia's economy is predominantly reliant on traditional rain‐fed small‐scale farming. Acknowledging the underutilization of its vast water resources, the government has prioritized expanding small‐scale irrigation. Nevertheless, there has been limited research into the reasons for its persistently low adoption or its impact on household income. This study identified the factors influencing household participation in small‐scale irrigation and evaluated their impact on income. Data were collected from 202 households via a structured questionnaire in a multi‐stage, cross‐sectional survey. A binary logistic regression model identified key drivers of participation. The results revealed that cultivable land size, distance to markets, distance to water sources, and engagement in off‐farm activities negatively influenced participation. In contrast, education level, family size, access to credit, and frequency of contact with extension services had positive impacts. Using a propensity score matching model, the study revealed that participation in small‐scale irrigation significantly increased average annual household income by 6249 Ethiopian Birr. Despite this economic benefit, adoption rates remain low. Therefore, we recommend that government agencies, particularly district agricultural offices, collaborate with non‐governmental organizations and local development partners to promote and support the adoption of small‐scale irrigation, thereby enhancing rural livelihoods and optimizing Ethiopia's water resource potential.