Soil Conservation Practices and Farm Productivity: Insights from Smallholder Farms in Ethiopia's Arsi Negelle District

Abstract

This study is focused on assessing the influence of soil conservation interventions on the technical efficiency of smallholder farm households in the Arsi Negelle district of Ethiopia. Employing a combination of methodologies, including Stochastic Frontier Analysis (SFA) to gauge efficiency scores and Propensity Score Matching (PSM) to analyze the impact of conservation practices, the research aims to provide valuable insights into the relationship between conservation efforts and farm productivity. The analysis begins by examining the factors influencing households' decisions to participate in soil conservation activities. Through logistic regression estimation, key determinants such as the educational level of the household head, farming experience, and frequency of extension contact emerge as significant predictors of participation in conservation practices. Subsequently, the study employs PSM, specifically kernel matching with a bandwidth of 0.5, to compare the outcomes of households that participate in conservation practices with those that do not. The results reveal a notable improvement of 3.16 percent in technical efficiency among participating households, underscoring the positive and robust impact of conservation initiatives on farm productivity. These findings carry important implications for policymakers and stakeholders involved in agricultural development. By highlighting the tangible benefits of soil conservation efforts on smallholder farms, the study underscores the importance of prioritizing and incentivizing sustainable agricultural practices. Furthermore, it emphasizes the need for targeted interventions aimed at promoting participation in conservation activities, particularly among households with lower levels of education and farming experience. This research contributes valuable insights to the ongoing discourse on sustainable agricultural development in Ethiopia and underscores the critical role of soil conservation in enhancing the technical efficiency and productivity of smallholder farm households in the region.