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The main objective of this study was to evaluate the impact of the Assosa Farmers’ Multi-Purpose Agricultural Cooperative Union on poverty reduction in rural households in the Oura Woreda farm households. Primary data was collected through a structured questionnaire based on 166 member respondents and 166 non-member respondents from purposively selected 4 Kebeles in the Oura Woreda. A total of 332 households were selected using a multi-stage sampling method. Secondary data was gathered from different published and unpublished relevant materials. The Assosa Farmer Cooperative Union and Oura Woreda Cooperative Office were also secondary data sources. In the study, a logit model and propensity score matching (PSM) method were employed to achieve the objective of the study, which was to assess poverty reduction indicators outcome variables such as income, savings, expenditure, and human capital between cooperative members and non-members. Based on PSM estimation results, the study found that the Assosa Farmers’ Cooperative Union has a significant impact on rural household poverty reduction in most of the above-listed impact indicator outcome variables, which were significantly different among members and non-members of the cooperative. The results indicate that the agricultural cooperative has a positive and statistically significant impact on participant households in terms of income from crop sales, savings, and household food expenditure. In consideration of this evidence further promotion, deepening, strengthening and supporting of agricultural cooperatives and its service recommended.
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