Aim:
This study investigates the effects of agricultural extension services and cooperative membership on smallholder farmers’ welfare in Northern Ethiopia.

Material and methods:
A sample of 392 households was selected from the Laelay Maichew district in Tigray, Ethiopia. A mixed-methods approach was used, including both qualitative and quantitative data collection. The study employed regression-adjusted and inverse probability-weighted regression adjustment (IPWRA) models to estimate the impacts of extension services and cooperative membership on household welfare, focusing on income, expenditure, and asset ownership.

Results:
The study found that access to extension services significantly increased farmers’ welfare, particularly in farm income and asset ownership, more so than cooperative membership. Participants in extension services spent ETB 13,903 more annually and had higher asset values compared to non-participants. Cooperative membership also had a positive effect, yet it was less substantial. The results suggest that while both interventions improve welfare, extension services have a greater impact.

Conclusions:
Agricultural extension services are essential for improving farmers’ welfare by boosting income and asset ownership. While cooperative membership offers support, its impact is less significant. Policymakers should prioritize expanding access to extension services and rural financial markets to enhance agricultural productivity and improve smallholder livelihoods.