Abstract:
The backbone of the Ethiopian economy is agriculture. Smallholder farmer’s agricultural
productivity growth is one of the priorities issue for Ethiopia. The objective of this study is to
analysis impact of land consolidation on wheat producers’ productivity and technical
efficiency in Kogota And Chencha Zuria Woredas Of Gamo Zone. Cross-sectional data from
390 smallholder farmers were collected. The respondents were chosen using a mix of
probability and non-probability sampling technique. To analyze the data, Stochastic
Production Frontier and binary endogenous switching regression model were employed. The
empirical result revealed that the technical efficiency score of the wheat producers ranges
from 45 to 98 percent with mean technical efficiency score of 86 percent. This implies that an
average farmer can improve production level by 16% through improving technical efficiency
alone. The mean technical efficiency stands at 90% and 83% for participant in land
consolidation and non-participant households, respectively. The stochastic frontier model
results revealed that frequency of extension contact, household size, farm size, cooperative
membership and the use of improved seed were significantly and positively affected technical
efficiency of smallholder wheat producers in the study area. The binary endogenous
switching regression model result revealed that farm households who participated in land
consolidation were more technically efficient in wheat production compared with their non
participant counterparts. On the other hand, the model revealed that farmers who
participated in land consolidation could have gained lower yield than if they had not
participated; and those who did not participated could have gained higher yield than if they
had. Based on these findings, it is recommended that improve the efficiency level of
smallholder wheat producers a timely supply of inputs such as improved seed and fertilizer,
efficient extension services, cooperative membership, and policy for the implementation of
land consolidation will be promoted to improve productivity and technical efficiency
