Despite the importance of saving to both savers and financial institution, different household and institutions related factors separated a lot of farmers from saving in Microfinance institutions. This study was conducted with specific objectives: to identify factors affecting farmers' saving in microfinance institution and to assess challenges and opportunities in microfinance service provision in the Gimbo district of Kaffa zone, Southern Ethiopia. The study was based on the data collected from 200 sample households selected through two-stage sampling technique. Both descriptive statistics and econometric model were used to analyze the data. A Tobit model was used to assess the determinants of households' saving. Econometric model result showed that education level, land size, farm income, household expenditure, distance from service provision center, and perception on interest rate were found to be significant in influencing the households' saving in Omo micro-finance. Low loan recovery performance, low saving mobilization, lack of office facilities, lack of awareness on services and lack of coordination with other government sectors were major challenges in microfinance service provision in the district. The result suggests the need of microfinance institution and concerned government bodies playing role regarding improving saving culture of households through financial literacy, modernization of working procedures in saving service provision, and reviewing the saving interest rate for encouraging farmers to save.

Enset production in Ethiopia is seemingly limited to only consumption-based production and most of producers supplied small amounts of products to the market. This study was conducted with main objective of assessing factors affecting market participation of enset producers in Chena district in southwestern Ethiopia. Two-stage sampling technique was employed to select 101 representative enset producer households. Both primary and secondary data sources were used to gather necessary data for attaining specific objectives of the study. Both descriptive statistics and econometric model were used to analyze the collected data. A Heckman two stage model was employed to analyze the factors affecting households’ decision in market participation in sale of enset products and the amount of gross income earned. Econometric model analysis result showed that; sex of household head, education level, livestock owned, a distance from nearest market center, enset plantation size, and transport access were found to be significant in affecting the probability of market participation decision. In addition, education level, family size, distance from market center, enset plantation, and transport access affected the amount of gross income earned from sale of different enset products. The result suggests the need for stakeholders’ involvement to enable market-oriented production of crop to encourage farmers for better crop production and market supply to have increased amount of income and proper utilization of the crop. Int. J. Agril. Res. Innov. Tech. 11(1): 17-25, June 2021

The financial sector has enabling role for agriculture as credit is used for investments and savings ensure a safe storage of money. In Ethiopia, regarding microfinance service provision, consecutive reforms were made to sustain the service. However, utilization of the service among the community is at low-level and affected by a different factors. This review was crucial to review different research works on how farmers participate in the microfinance services and it is necessary to assess the determinants of farmers’ participation in microfinance services and evaluate its impact on clients poverty reduction. Despite the increased outreach and expanded service provision of microfinance in Ethiopia, the agricultural sector has low financial service provided due to clients and the institution related characteristics.The major objective of this review was to review farmers’ Microfinance services participation and its impact on poverty reduction in Ethiopia. Significant variation across different microfinance impact studies on methodological, analytical, conceptual and outcome variable selection has been happened. These conditions resulted in limited evidence about real impact of microfinance service due to scope, reliability, quality and ability to generalize the findings. Therefore, this review findings argue for further investment in impact assessment through broadening the criteria on which the impact is assessed and generalization is made for further policy directions.

Enset based farming is an indigenous agricultural system and more than 20% of Ethiopia's population depends on enset for food, feed, and fiber. Due to different factors, enset production is seemingly limited to consumption purpose and most of producers sold small amounts of products like Kocho, bulla and fiber.This study was conducted with major objective of: assessing determinants of market participation of enset producers in Chena district in Kaffa zone of south western Ethiopia. Two-stage sampling technique was employed to select four Kebeles and 101 representative enset producers. Both primary and secondary data sources were used to gather necessary data for analysis. Both descriptive statistics and econometric model were used to analyze the data. A Heckman two stage model was employed to assess the determinants of households' decision in market participation of enset products and the amount of gross income earned. Econometric model results showed that; sex, education level, livestock owned, distance from nearest market center, enset plantation, and transport access were found to be significant in influencing the probability of market participation decision. Furthermore, education level, family size, distance from nearest market cente, enset plantation, and transport access affected the amount of gross income earned from sale of enset products. The result suggests the need for stakeholders' involvement to enable market-oriented production of crop to capacitate farmers for better production and market supply to have increased amount of income and proper utilization of the crop.