Production risk and farm technology adoption in the rain-fed semi-arid lands of Kenya
AbstractThis study provides empirical evidence on the effects of production risk on smallholder farmersâ€™ adoption of farm technology, using plot-level data collected from two semi-arid districts in Kenya, Machakos and Taita Taveta. Using Mundlakâ€™s approach (1978), the study found that factors such as yield variability and the risk of crop failures indeed affect technology adoption decisions in low-income, rainfed agriculture. However, the direction and magnitude of effects depend on the farm technology under consideration. The results explain why poor farm households in rainfed and risky production environments are reluctant to adopt new farm technologies that could improve production: it is because the technologies involve enormous downside risks. This result underscores the fact that productivity gain is a necessary, but not sufficient, condition to attract farmers to adopt new technologies and agricultural innovations.
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Bibliographic InfoArticle provided by NCERA-210 in its journal Journal of Cooperatives.
Volume (Year): 04 (2010)
Issue (Month): 2 (June)
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Web page: http://www.agecon.ksu.edu/accc/ncera210/JournalofCooperatives.htm
More information through EDIRC
farm productivity; production risk; farm technology adoption; Kenya; Farm Management; International Development; Research and Development/Tech Change/Emerging Technologies; D81; Q12; Q18;
Find related papers by JEL classification:
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
- Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy
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