Journal of World Economic Research 2022; 11(2): 64-76 http://www.sciencepublishinggroup.com/j/jwer doi: 10.11648/j.jwer.20221102.11 ISSN: 2328-773X (Print); ISSN: 2328-7748 (Online) The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia Firew Hailemariam Mamo * , Aman Kiniso Beguije Department of Agricultural Economics, Oda Bultum University, Chiro, Ethiopia Email address: * Corresponding author To cite this article: Firew Hailemariam Mamo, Aman Kiniso Beguije. The Determinants of Commercialization to Smallholder Farmers in West Hararghe Zone, Oromia Region, Ethiopia. Journal of World Economic Research. Vol. 11, No. 2, 2022, pp. 64-76. doi: 10.11648/j.jwer.20221102.11 Received: June 14, 2022; Accepted: July 22, 2022; Published: August 31, 2022 Abstract: Taking into account the importance of commercialization in relation to agricultural and its priceless impacts on rural development and food security, studying the determining factors of commercialization had given a particular attention in this research. Smallholder commercialization as the strength of the linkage between farm households’ markets and consumption at a given point in time have a particular concern in this research. Among the others, computing household commercialization index and pinpointing the critical factors affecting household commercialization, considered reference points. Sampling involved a multi-stage random sampling procedure and pursued the required representative samples. Household Commercialization Index was equated by the ratio of the total sold agricultural product values to the total production. To determine the impact of independent variables involved, the research applied: Generalized Regression Model. In statistics, generalized linear model is the theoretical extension and application of an Ordinary Least Square Regression (OLS). This model weight the dependent variable to some scale, combines count and continuous variables (Tweedie probability distribution) and transform estimated values via a log-link function. The research compared results taking from two parameter estimation models for hypothesis testing: Parameter estimation through full log-likelihood model and bootstrapped parameter estimation in constrained model. The parameter estimation through maximum log-likelihood function bring in to light, potential cases of errors, which may lead to wrong conclusion while the bootstrapped estimation had trimmed outliers, measure values with high precision, and provide consistent out puts reliable to generalization. Results after the model revealed that: sex of household head (at 5%), years of cultivation (10%), distance from market (at 10%), means of transportation, (10%) and credit access (5%) had drained their proportionate substantial impact. The average value of commercialization index is 35% that likely considered very lower when compared to the average (52%) in Ethiopia. The condition of smallholder farmers in the study area appeals collaborative effort. Empirical research results reviewed that the issues that matters most varies among farmers in different locations; although sometimes overlap. Beyond merely conducting research, initiations to transform research outputs in to long-term project should be coordinated by volunteers and multiplying successful projects to similar suitable location should take in to practice. Keywords: Commercialization, Commercialization Index, Smallholder Farmer, Agriculture 1. Introduction Agricultural commercialization refers: the gradual increase on the share of agricultural output sold from what the farm household has been producing and this is a key phenomenon in agriculture, called as process of agricultural transformation and justified its link with rising agricultural productivity, surplus above producers consumption level, individual producer’s economic decision on volume of sale, and improvements in infrastructure which facilitate the sale of agricultural output [1]. Although shifting from low-valued (staple food crops) to higher-valued commercial crops attribute in raising farm household income, it along brings some causalities [2]. The issues constraining smallholder agricultural commercialization in African countries have been criticized for its pro-poor growth model and three key arguments are