Abstract:
Seed producer cooperatives are also influenced by many factors like agriculture sector. The
objective of this study was to provide empirical evidence for the contribution of SPC on the
income of participant in the study area by participation. The study had used cross-sectional
data for the year 2019. Primary data was collected from the sample of 191 households from
Womberma district, Markuma kebele (98 from nonmember and 93 member households) by
using semi-structured questioners, and simple random sampling was applied to choose the
sample from population. The secondary data was collected from different journals, books,
proceedings, and magazines. Descriptive statistical analysis method such as frequency, mean,
SD, max, min and percentage were employed for the analysis. In addition, an inferential
statistical analysis method such as independent t-test and X2 were employed. Furthermore,
econometric model analysis, a binary probit model was used to identify factors that affect the
participation of farmers on SPC. A propensity score matching method was used to estimate the
impact of participation in SPC on participant income. when see the result of binary probit from
the explanatory variables (sex of the household, NPSCHH and MOBHH negatively associate
with the dependent variable however significant at 5% significant level) (total land size, total
income and MKTINF and EDUHH positive and significant relationship at 1% & 10% level of
significance respectively. The estimation of PSM results revealed that the participants in SPC
had gotten a higher income than that of nonparticipants by 5684.9 39 birr. To enhance the
confidentiality of the PSM result, sensitivity analysis was applied, and it was found that the
confidential level of the result was sensitive up to 200%. Based on the result of the study, it is
recommended that SPC should be expanded to non-SPC kebele.
Key Words: Binary Probit, Participation, PSM, Seed Producer Cooperatives, Total
Income, Womberma District