Factors affecting the adoption of sustainable agricultural practices: Findings from panel data for Vietnam

Conventional farming and climate change are placing considerable stress on agricultural systems around the world, leading to increased hunger, malnutrition and food insecurity, particularly in developing countries. Sustainable Agricultural Practices (SAPs) can help raise productivity and agricultural incomes while minimising negative environmental impacts. While recognising that sustainability is a contested term, we identify agricultural practices that are generally viewed as sustainable as they minimise impacts on the environment. Despite the benefits of SAPs, adoption rates are still low in developing countries. While previous studies have examined the factors affecting SAP adoption, most have not accounted for issues of heterogeneity and endogeneity inherent in such analysis. In this paper, we address this by employing a random-effects probit model with the Mundlak approach and fixed-effects linear probability models to control for farmer- and plot-level heterogeneities and to avoid the incidental parameters problem. We analyse panel data from Vietnam for approximately 14,000 plots over the period 2008–2016 to identify the factors behind SAP adoption. Overall, we find that improved knowledge transferred by extension agents and learning from peers significantly influence adoption. Farmers' knowledge of their land and soil quality are also important factors. We recommend enhancing cooperation between extension agents, farmer groups and peers in order to encourage SAP adoption.