Abstract:
The purpose of this study was to identify and evaluate determinant factors of renting-in
threshing machine and the impact of machine renting-in service on reduction of threshing
cost of the household. To address the objectives the study used cross-sectional data collected
from 180 machine users and non-users households in Haramaya district. Sample size of
respondent from each selected two kebeles was determined using probability proportional to
size sampling technique. The sample from each stratum was selected randomly using simple
random sampling technique. For data analysis, descriptive statistics, econometric model and
propensity score matching (PSM) technique were employed. The result of logistic regression
model indicated that, education level of household head, area of cultivated land, social status
of the household head, accessibility to farm technology, farmers perception and number of
extension contact were the major factors that positively and significantly affected the use of
renting-in thresher service for threshing the sorghum in the study area. The balancing of
propensity score and covariate checked via different procedures by applying the selected
matching algorithm. The process of matching thus creates a high degree of covariate balance
between the participant and non-participant samples. Also, t-values showed that before
matching four of selected variables statistically significant differences but after matching all
of the covariates were balanced and become statistically insignificant. The low pseudo-R2 and
the insignificant likelihood ratio tests support the matching hypothesis. The result pertaining
to propensity score matching revealed that renting-in sorghum threshing machine helped in
reducing the cost of threshing per ton by about Birr 894.52. Based on the result of the study,
it was found that introduction of the machine in the sorghum threshing area’s will be
beneficial in reducing the cost of threshing and timely completion threshing of grain.
Therefore efforts are needed by Government, NGO’s and private sectors to make
multiplication and promotion of the thresher for farmers who use on their harvest and give
renting service for farmers who can’t purchase the machine
