Adoption of New Technologies in Ethiopian Agriculture: The Case of Tegulet‐Bulga District, Shoa Province

Abstract Adoption of agricultural production technologies in developing countries is influenced by a wide range of economic and social factors as well as physical and technical aspects of farming and the risk attitude of farmers. It is important to understand the role of these factors to ensure the development of appropriate technologies and the design of successful development projects. This study examines the impact of such factors on the adoption of single‐ox, fertilizer and pesticide technologies as part of a post‐drought recovery project in Tegulet‐Bulga district in Ethiopia. Models to evaluate the probability of adoption are specified for the respective technologies and are estimated using a logit maximum likelihood procedure, results indicate that the most significant variable affecting the probability of adoption of all three technologies is farm size; the impact is negative for single‐ox technology and positive for fertilizer and pesticide use. Economic factors such as income, wealth and debt generally exhibit statistically significant influence on the adoption of single‐ox and pesticide technologies as do family size, access to outside information, education and experience. The effect of socio‐economic factors on adoption of fertilizer and pesticide technologies is greater in the area which has more access to outside information and off‐farm activities (Ankober) than in more ‘self‐contained’ area (Seladengay). The impact of the degree of risk aversion of farmers is found to be significant and negative for single‐ox technology in both areas, and for fertilizer and pesticide technologies in only one area. The predicted probabilities of technology adoption by an average farmer are found to increase dramatically with the level of education and access or exposure to outside information.