Unlike tef, untreated maize deteriorates rapidly in storage. None of the sample farmers reported using storage insecticide, but EARO research indicates that use of insecticide can cut storage losses in half . Current MOA lending policies make it difficult for farmers to store their crops for later sale as farmers are expected to pay back loans at harvest. Unless they have other sources of income to repay loans most farmers would be obliged to sell when prices are lowest. Allowing farmers to pay back loans later if they are willing to pay higher accumulated interest charges could increase returns to improved technologies.
Improved inputs are by far the biggest cost component in the budgets.
In 1997 Ethiopia exported maize to neighboring Kenya, so an export parity price is also calculated for maize. Economic profitability was estimated for alternative scenarios of high and low world prices for DAP and urea, and high and low export parity prices for maize. Assuming that intensified production of maize and tef fills a domestic need that otherwise would have to be filled by commercial imports, it is highly profitable from society's standpoint . Even when imported fertilizer and seed are priced at their full international values, intensive production of maize and tef is still highly profitable. However, net income is still highly positive.