This study was conducted in Babile district to examine the determinants of farmers’ participation decision in groundnut commercialization. Cross sectional research design was used. Two stage random sampling procedures were used for the selection of 160 representative sample households. Number of sample size was determined from each 4 representative kebele after Yamane formula was used to determine the total sample size. Probability proportional to size was used to avoid under representation of any one group. Semi- structured interview schedule was used for gathering primary data. Descriptive statistics and probit model were used for data analysis. The probit model result reveals that age, education level, distance to the nearest market, land size, access to market information and non/off-farm income were significantly influence households’ participation decision in groundnut commercialization. The findings have an implication for all the concerned body and they should have to develop strategies to address the above-mentioned factors in order to improve smallholder farmers’ groundnut commercialization decision.
Keywords: Babile district, Farmers, commercialization decision, groundnut, probit model
