This paper aims to investigate the determinants of smallholder farmers’ rust resistant wheat adoption and impact on productivity and commercialization level. Based on the double hurdle model to identify the determinants of adoption of rust resistant wheat varieties, the study obtained sex of household head, active family size, farming experience, market (output) distance and location variable were important variables in affecting the likelihood of farmers to adopt. Farm size, oxen ownership, credit access and participation in demonstrations were found to significantly affect farmers’ decisions on the level of adoption of rust resistant wheat varieties. According to the results of PSM, the of adoption of rust resistant wheat varieties improved wheat productivity approximately by 12 quintals per hectare more on average and increased wheat commercialization level by about 13.6% on average. Furthermore, the generalized propensity score matching was employed to investigate the heterogenous effects of the adoption of rust resistant wheat varieties among adopters. The results of the study showed that area devoted to rust resistant wheat varieties increased the likelihood of wheat commercialization and volume of wheat marketed. The result provides empirical evidence of the heterogenous impacts of adoption of rust resistant wheat varieties.

Keywords: Adoption, rust resistant, wheat varieties, double hurdle, PSM, GPS