A higher marketed surplus would help farmers to participate in a high value markets by increasing their level of income which in turn contribute to the economic development and poverty alleviation. The objective of this paper is to estimate the marketed surplus of sesame by smallholders and to identify its underlying determinants. A two-stage random sampling procedure was employed and a total of 122 smallholder farmers from four kebeles were randomly and proportionately sampled to collect both secondary and primary sources. The results of econometric analysis showed that sesame marketed surplus was significantly affected by education of the household head, farming experience, yield, frequency of extension contact, land allocated to sesame production, access to market information, and distance from the market The findings of the study suggest that strengthening the provision of formal and informal education, improving farmers’ access to improved and disease resistance seed variety, improving and strengthening institutional services, intensifying inputs on the land allocated to sesame production, and providing adequate updated market information are required.
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