Impact of small-scale irrigation on the income of rural farm households: empirical evidence from Ethiopia

Purpose Agricultural production in Ethiopia is largely dependent on seasonal rainfall. This has made the agriculture-based economy of the country extremely vulnerable to the impacts of climatic change. To reduce this risk, the government has introduced strategies that promote irrigation as a key policy priority. Despite this, there has been limited empirical evidence on the impact of practicing small-scale irrigation on household income. This study was, therefore, conducted to examine the impact of access to small-scale irrigation on farm-household income in GannaBossa district, Ethiopia. Design/methodology/approach A multistage stratified random sampling technique was adopted to select 289 study participants. The data were analysed using both descriptive and inferential data analysis techniques. Propensity score matching (PSM) and logit regression were applied to analyse the impact of irrigation utilization on farm households’ income and identify factors influencing farm households’ decisions about irrigation-utilization, respectively. Findings The results of the study indicated that access to irrigation has a positive and significant impact on farm-household income. Estimates of the PSM model also confirmed that the mean income of irrigating households is significantly higher than that of non-irritating households. Further analysis of the results of the regression model revealed that amongst the hypothesized predictors of irrigation utilization, family size, soil fertility status, access to credit, access to extension services and access to the market were found to be positive and significant determinants of irrigation utilization, while distance to a water source was found to be a negative and significant predictor of irrigation utilization. Practical implications The results of the study can inform development practitioners on how expanding access to irrigation can serve as one key driver in enhancing growth in agricultural productivity, increasing household income and contributing to the alleviation of rural poverty in areas with irregular rainfall and a high risk of drought. Originality/value Given the country’s irrigation potential and policy priorities, such empirical evidence informs decision-makers to make informed decisions regarding prioritizing irrigation interventions and expanding access and management in Ethiopia.