DETERMINANT OF ROSEMARY PRODUCTION AND ITS IMPACT OF RURAL HOUSEHOLD INCOME THE CASE OF WERABE TOWN, SILTA ZONE,CENTRAL ETHIOPIA REGION

ABSTRACT Agriculture is the main contributor of Ethiopian economic growth and holds the majority work forces. But the agriculture practices are dependent with rainfall and small scale subsistence production system. Ethiopia's rosemary production is currently very limited.The goal of this study was to examine the determinant of rosemary production and its impact on rural household income in the werabe town. Both descriptive and explanatory research design were employed to achieve appropriate research out lone in order to collect appropriate representative data the employed multi-stage sampling method. Quantitative and Qualitative data were collected from both primary and secondary sources. 183 sample respondents from participant and nonparticipant of rosemary producers from werabe town. Data was analysed using descriptive statistics as well as an econometric model. The binary logistic regression model was used to examine the factors influencing of rosemary spices production, and the PSM approach was employed to estimate the impact of rosemary production on household income. The logistic regression model results revealed that age, education level, access to credit, firm size, frequency of extension contact, and the number of labor available in the household had a positive and significant influence on rosemary production, whereas distance from the nearest market had a negative and significant influence on rosemary production. According to the results of the propensity score matching method, participant rosemary production of generated more income (19875.23 Birr) per year than nonparticipant. This indicates that participant of rosemary production has a positive contribution to households' income. Therefore, government and concerned bodies should better give due attention to the development, dissemination, and scaling up of participant of rosemary production.