Determinants of household income in small-scale irrigation farming: evidence from Dembecha District, Northwest Ethiopia

Small-scale irrigation is widely recognized as a strategy for enhancing agricultural productivity and improving rural livelihoods in Sub-Saharan Africa. This study examines the association between irrigation participation and household income and identifies the key determinants of income variation among smallholder farmers in Dembecha District, Northwest Ethiopia. A mixed-methods approach was employed, combining quantitative data from a cross-sectional survey of 188 households with qualitative insights from key informant interviews and focus group discussions. Descriptive statistics, independent sample tests, and a log-linear multiple regression model were used for data analysis. The results indicate that households with access to irrigation have significantly higher income levels than non-irrigators, suggesting that irrigation participation is associated with increased cropping intensity, production of high-value crops, and market participation. The regression model explained 67.4% of the variation in household income (R2 = 0.674). Irrigation access (β = 0.263, p < 0.01), education (β = 0.146, p < 0.01), and livestock ownership (β = 0.057, p < 0.01) positively influenced household income, while family size (β = −0.038, p < 0.01) and market distance (β = −0.029, p < 0.01) negatively affected income. The findings revealed that irrigation benefits were unevenly distributed, favoring households with better resource endowments and institutional access. Although the study provides important district-level evidence, its cross-sectional design limits causal interpretation. Overall, the findings highlight the need for integrated policy interventions that combine irrigation expansion with improved institutional support, infrastructure development, and financial access to promote inclusive and sustainable income growth.