This study was conducted in the Babile district to examine the determinants of farmers’ participation decisions in groundnut commercialization. A cross-sectional research design was used. Two-stage random sampling procedures were used for the selection of 160 representative sample households. The number of sample size was determined from each 4 representative kebele after the Yamane formula was used to determine the total sample size. Probability proportional to size was used to avoid under-representation of any one group. A semi-structured interview schedule was used for gathering primary data. Descriptive statistics and probit models were used for data analysis. The probit model result reveals that age, education level, distance to the nearest market, land size, access to market information, and non/off-farm income significantly influence households' participation decisions in groundnut commercialization. The findings have an implication for all the concerned bodies, and they should have to develop strategies to address the above-mentioned factors to improve smallholder farmers' groundnut commercialization decisions.

Keywords: Farmers, Groundnut, Commercialization Decision, probit model, Babile district.