Determinants of adoption and intensity of mechanization in Ethiopia: Evidence from Arsi Zone

Abstract

Mechanization has been recognized as a key thematic area by the Ethiopian Agricultural Research Institute for the period 2018–2030; however, research on its adoption determinants remains limited. This study examines the factors influencing the adoption and intensity of mechanization, focusing on tractor ploughing and combine harvester use among 413 farmers in Ethiopia’s Arsi Zone, using a random sampling technique. Descriptive statistics indicate that 59% of farmers use combine harvesters, while 51% utilize tractors, with adoption primarily driven by labour shortages, reduction of post-harvest losses, and productivity improvements. A Multivariate Probit model was employed to analyze adoption decisions, while a Multivariate Tobit model assessed the intensity of use. The econometric results reveal that education, access to credit, and cooperative membership are positively associated with mechanization adoption, whereas the crop diversification index and land fragmentation have significant negative effects. Similarly, the intensity of machinery use is positively linked to education level, farm size, cooperative membership, and access to extension services, while land fragmentation negatively affects adoption intensity. Therefore, the study recommends enhancing farmers’ education and training, expanding access to credit, strengthening cooperatives, promoting land consolidation, and introducing land-augmenting technologies to improve mechanization adoption and intensity in Ethiopia.