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Impact of Farm Size and Uncertainty on Technology Disadoption

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  • Gedikoglu, Haluk

Abstract

For policies that promote use of new technologies by farmers to be successful, it is important that farmers continue to use these technologies. Technology disadoption has not been analyzed in the literature widely and there is no theoretical model that analyzes technology disadoption. The objective of the current study is to provide a theoretical framework that explains the impact of farm size and uncertainty with respect to production technology on farmers’ decision to disadopt a new technology. Current study found that a negative relationship between farm size and disadoption technologies that were complement to other technologies that are used by larger farms. Also, the current study predicted that larger farmers are more likely to disadopt a new technology if a fixed replacement cost is required, where average replacement cost decreases with farm size. For the impact of technological uncertainty, the current paper found that if the variance of the profit from current technology or pratice increases, farmers become more likely to disadopt the current technology or the practices.

Suggested Citation

  • Gedikoglu, Haluk, 2010. "Impact of Farm Size and Uncertainty on Technology Disadoption," 2010 Annual Meeting, February 6-9, 2010, Orlando, Florida 56431, Southern Agricultural Economics Association.
    • Handle: RePEc:ags:saea10:56431
    DOI: 10.22004/ag.econ.56431
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    References listed on IDEAS

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    1. Boris Bravo & Horacio Cocchi & Daniel Solís, 2006. "Adoption of Soil Conservation Technologies in El Salvador: A cross-Section and Over-Time Analysis," OVE Working Papers 1806, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    2. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    3. Boris E. Bravo-Ureta & Horacio Cocchi & Daniel Solís, 2006. "Adoption of Soil Conservation Technologies in El Salvador: A Cross-Section and Over-Time Analysis," IDB Publications (Working Papers) 24418, Inter-American Development Bank.
    4. An, Henry, 2008. "The Adoption and Disadoption of Recombinant Bovine Somatotropin in the U.S. Dairy Industry," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6278, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
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    Cited by:

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    2. Wakeyo, Mekonnen B. & Gardebroek, Cornelis, 2013. "Does water harvesting induce fertilizer use among smallholders? Evidence from Ethiopia," Agricultural Systems, Elsevier, vol. 114(C), pages 54-63.

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