Impact of Awash irrigation on the welfare of smallholder farmers in Eastern Ethiopia

Ethiopia's agriculture is dominated by small-scale rain-fed production in combinations of natural and manmade factors have resulted in serious poverty. Irrigation farming is increasing been used as a strategy in Ethiopia. However, lack of consensus on the role of the irrigation sector on the welfare of smallholder farmers and pitfalls in impact study methodologies resulted in mixed findings. This study evaluated the impact of Awash irrigation on the welfare of rural smallholder farmers. Two-stage stratified sampling technique employed to select sample households. Cross-sectional household level data from a survey of 315; 165 irrigation users and 151 non-users smallholder farmers in Asiyta district, Ethiopia used for the analysis. This study employed endogenous switching regression model to control for endogeneity problems associated with adoption decision. Accordingly, the correlation coefficient result proved that the existence of self-selection and endogeneity. Results indicated, irrigation users' per capita consumption expenditure and income were 16 percent and 35 percent, respectively, higher compared to non-irrigation-users significantly. Endogenous switching regression model further identified amount of own land cultivated, education status, number of extension contact, livestock holding, nearest market distance, access to non-farm job and nearest canal distance significantly determine irrigation participation. The study concluded that Awash irrigation is one of the viable solutions to improve the welfare of smallholder farmers in the study area. Therefore, governmental and non-governmental organization should promote, improve and expand Awash irrigation in all areas of the Woreda in particular and irrigation agriculture in general.