dc.description.abstract |
Homegarden agroforestry, mono-cropping, and Eucalyptus woodlots are common farming
practices in northwestern Amhara region, Ethiopia. However, the financial profitability of these
farming practices is not well known. Therefore, this study is conducted to assess the financial
profitability of homegarden agroforestry, mono-cropping, and Eucalyptus woodlots in Dangila
district, northwestern Amhara region, Ethiopia. A mixed research methods approach was
applied to gather both quantitative and qualitative data. Multi-stage sampling technique was
employed to select the study area, Kebeles, and sample households. A total sample size of 332
households was selected using a simple random sampling technique. Primary data were
collected from household surveys; focus group discussions (FGDs), and key informant interviews
(KII). Data were analyzed using descriptive statistics and multinomial logistic regression. The
findings revealed that all those farming systems show positive values for all financial indicators.
Comparatively, the eucalyptus woodlot is found to be a more profitable farming system with an
Equal Annual Equivalent value (EAE) of 655,130.64 ETB which is 1.7 times higher than
homegarden agroforestry and three times higher than monocropping. Monocropping is more
sensitive to output price while eucalyptus woodlot is more sensitive to interest rate. The average
annual income of households is 57,793 ETB of which the main farming practices that include
homegarden agroforestry, mono-cropping, and Eucalyptus woodlots contribute 13,656.33 ETB
(23.6%), 21,976.08 ETB (38.7%), 18,093.51.66 ETB (31.3%), respectively and non-farm income
contributes 4,067.22 ETB (7%). The logistic regression analysis revealed that distance to the
market, educational status, and age of household positively and significantly influenced the
choice of households to practice homegarden agroforestry, mono-cropping, and eucalyptus
woodlot farming system. However, the number of livestock, input price, pests and diseases, and
family size negatively influenced the choice of household to these practices. It is concluded that
monocropping, closely followed by Eucalyptus woodlots, is the main contributor to household
income. In terms of financial attractiveness, eucalyptus woodlots are more profitable than the
other land-use systems in the study area. This study suggests that the agricultural sector should
create awareness to enhance the profitability of farming practices; create market linkage access,
develop infrastructure and distribute inputs timely to farmers. |
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