Determinant of Cereal crops commercialization in Rural Ethiopia: The Case of Sinana District, Bale Zone, Oromia, Ethiopia

ABSTRACT The main aim of this study is to analyze determinants of cereal crops commercialization in Bale Zone, Sinana district. The study used a cross-sectional data collected in 2021 from a sample of 322 farm households. Among these farm households 304 were male respondents and the remaining 18 are female respondents. Also 52.80% respondents were not participating in cereal crops commercialization and 47.2% are participating in cereal crop commercialization. Tobit model was employed to analyze both market participation and degree of commercialization. The Tobit model result shows that the degree of cereal crops commercialization was significantly explained by education level of the household heads, ownership of oxen, distance market, the frequency of extension contact, house hold labor size, the amount of land allocate to cereal crops, cash expenditure for farming and the access to market information. Of these variables, the education level of household heads, amount of land allocated for cereal crop, house hold labor size and frequency of extension contact had a higher parametric effect on the probability of cereal crops commercialization in the Bale zone, Sinana district. The study also indicated that farmers in the Bale Zone were low-commercially oriented in the cereal crops output market. However, there was significant variation in the degree of cereal crops commercialization among the sample house- holds (ranged from 0 % to 56%) which calls for further efforts by concerned stakeholders to uplift households with a low degree of cereal crops commercialization. Therefore, the degree` of cereal crops commercialization can be improved by increasing the frequency of extension contact, amount of land allocate to cereal crops, and use of strategies that promote intensive agriculture such as warranting of the availability of modern agro-inputs at affordable prices, and promotion of the adoption and use of modern agro-inputs by farm households. 1