The role of social capital in addressing seed access constraints and adoption intensity: Evidence from Arsi Highland, Oromia Region, Ethiopia

In Ethiopia, limited empirical studies exist on how seed supply access constraints condition adoption intensity (demand). Hence, this research employs the augmented Double hurdle model to incorporate the effect of seed access (local supply) constraints in conditioning demand. Moreover, nine factors were constructed of twenty-eight indicators using Principal Components Analysis to resolve which cognitive and structural indicators drive social capital at the farm household level. The Double hurdle result reveals that social capital indeed determines wheat varieties access; besides, different forms of social capital have dissimilar effects on varieties demand. In addition to social capital variables (such as getting well with other farmers, generalized trust, and trust in agricultural institutions), information on seed access, training on varieties selection, and education have significant positive effects on relaxing seed access constraints and demand. Hence, the result suggests that agricultural policy and extension efforts should consider not only human, and physical capital, but also social capital in relaxing seed access constraints and demand. Furthermore, the government of Ethiopia should develop strong regulatory mechanisms to reduce corruption in the seed supply system.