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Pulse production in India has stagnated relative to staple grains and cash crops, raising concerns about rural protein consumption. We experimentally evaluate an effort to increase local pulse production in Bihar. This intervention consisted of 2 years of input subsidies and extension to facilitate learning, followed by the creation of marketing organizations and a year of output price support to raise profitability. Farmers respond to price signals by expanding inputs when subsidized and increasing pulse sales under price supports. However, we see no evidence that the program shifted equilibrium production portfolios as pulses return to pre‐intervention levels after the support ends. Results indicate that short‐term learning by doing cannot overcome long‐run barriers to local pulse production, even when farmers have a viable outlet to sell their surplus output. [ABSTRACT FROM AUTHOR]

How do social networks impact technology adoption? Exploiting a natural experiment in the mid‐20th century U.S. Upper Midwest, we find that social network expansions, in the form of mergers between congregations of the American Lutheran Church, led to increased rates of agricultural technology adoption among farmers. In counties that experienced a merger, the number of farms using chemical fertilizer increased by over 5%, and the total fertilized acreage increased by over 10% relative to counties without a merger. These effects are consistent with increased information sharing between farmers due to congregational mergers. [ABSTRACT FROM AUTHOR]

The emerging hemp industry is an example of an important class of agricultural products where the market extent is limited, in hemp's case by laws and regulations, causing technology adoption to interact through prices with market‐level equilibrium. In this paper, we show that the equilibrium adoption rate and producer welfare impact of new technology, such as improved hemp genetics and management, are determined by the interaction between market prices and the spatial distribution of returns of both current and new technologies in the farm population. Price changes affect adoption and welfare through shifts in both the location (mean) and dispersion (variance and higher moments) of the spatial distribution of gains to the new technology. We show that an output price change may either increase or decrease the adoption rate of a new technology and in turn impact the elasticity of the market supply function. Additionally, we derive market‐equilibrium measures of welfare change for both adopters and non‐adopters and show how these welfare measures are affected by the spatial distribution of returns to a new technology. Our finding suggests that the interplay between new technologies and price changes is likely to have empirically important effects on regional supply and farm welfare. [ABSTRACT FROM AUTHOR]

Inadequate information on the benefits of and knowledge about innovative agricultural technologies continue to be a major constraint to technology adoption among smallholder farmers in developing countries. The low adoption of new technologies is one of the causes of low productivity and high poverty incidence among smallholder farmers, particularly in Africa. In this paper, I briefly review the literature on social networks and technology diffusion, and argue that the diffusion potential of social networks is underexplored. I then present results from two empirical studies on the impact of social networks on the adoption of improved crop varieties in Ghana and Ethiopia. The results reveal that farmers' peer adoption decisions and experiences, as well as information from trained development agents positively and statistically influence their adoption decisions. I also find that network structural characteristics such as lower segmentation within networks, high credibility of the information, and high effectiveness and efficiency of the amount of information flow tend to improve information acquisition and speed up diffusion of improved crop varieties. [ABSTRACT FROM AUTHOR]

We investigate the effect of a modest food safety premium on semisubsistence farmers' investment in a food safety technology. We demonstrate theoretically that in the face of production uncertainty, a market incentive below the marginal production cost of achieving the safety standard can increase food safety investment among farmers motivated by private health returns. We test this prediction through a randomized controlled trial in Kenya through which members of existing farmer groups were offered an opportunity to purchase a food safety input, and half were offered a 5% market premium for produce that met the associated regulatory standard. Access to the premium more than doubled investment in the food safety technology. In line with the model's prediction, most premium‐induced adoption was by farmers motivated by a combination of health and financial rewards. [ABSTRACT FROM AUTHOR]

We report the results of a large‐scale, multi‐year experimental evaluation of the System of Rice Intensification (SRI), an innovation that first emerged in Madagascar in the 1980s and has now diffused to more than fifty countries. Using a randomized training saturation design with a pure control group, we find that greater cross‐sectional or intertemporal intensity of direct or indirect training exposure to SRI has a sizable, positive effect on Bangladeshi farmers' propensity to adopt (and not to disadopt) SRI. We find large, positive, and significant impacts of SRI training on rice yields and profits, as well as multiple household well‐being indicators, for both trained and untrained farmers in training villages. We also find high rates of disadoption, and clear indications of non‐random selection into technology adoption conditional on randomized exposure to training, such that adopters and non‐adopters within the same treatment arm experience similar outcomes. Rice yields, profits, and household well‐being outcomes do not, however, vary at the intensive margin with intensity of training exposure, a finding consistent with multi‐object learning models. [ABSTRACT FROM AUTHOR]

We leverage spatial and temporal variation in the implementation of county‐level 287(g) immigration enforcement policies as a quasi‐experiment to measure the effects of an inward shift in the local immigrant labor supply on U.S. dairy operations. Our findings show that 287(g) policies cause production and labor expenditures per farm to decrease and labor efficiency to increase. The primary dairy operator is more likely to have off‐farm income, and dairies are more likely to use select labor‐saving technologies after 287(g) is implemented. Nevertheless, the number of dairies in operation, total milk production, and average dairy size in the county decline. Our findings indicate that the dairy industry became more labor efficient and technologically advanced as a result of the 287(g) program. However, total production declined. We conclude that technological gains in the dairy industry were insufficient to entirely offset the negative shock to production resulting from an inward shift in labor supply, at least in the short run. These findings are of importance for labor‐intensive industries that could potentially experience an adverse labor supply shock. [ABSTRACT FROM AUTHOR]

This article examines whether improvement in access to credit affects new technology adoption. Using the Additional Rural Incomes Survey and Rural Economic and Demographic Survey Indian household panel data, and bank branch data from the Reserve Bank of India, I evaluate the impact of bank branch expansion on high‐yielding variety seed adoption by Indian households. I use the Indian government's social banking policy to provide exogenous variation in district bank access. This policy, in effect between 1977 and 1990, forced banks to open more branches in financially less developed areas. I find that districts with lower initial financial development experienced a significant rise in new branch openings during the social banking period (1977–1990). Further, I find that households in financially less developed districts were more likely to adopt high‐yielding variety seeds during the social banking period, consistent with the hypothesis that access to credit is an important determinant of new technology adoption. A supplemental analysis using district panel data, which has broader geographic coverage, yields the same positive impact of formal credit access on high‐yielding variety seed usage and provides no evidence of historical trend differences in the use of high‐yielding variety seeds between more and less financially developed areas. [ABSTRACT FROM AUTHOR]

Free technology distribution can be an effective development policy instrument if market‐driven adoption is socially inefficient and hampered by affordability constraints. Yet, policy makers often oppose free distribution, arguing that reference dependence lowers the willingness to pay (WTP) and thus hinders market potentials in the long run. For improved cookstoves, this paper studies the WTP six years after a randomized one‐time free distribution in 2009. We demonstrate that the cookstoves were intensely used by the treatment group households in the years after randomization until they reached their designated lifetime. Using a real‐purchase offer, we find that both treatment and control households reveal a remarkably high WTP in 2015. The estimated confidence interval suggests that we can exclude a substantial negative effect on the treatment group. The policy implication is that one‐time free distribution does not necessarily undermine future market establishment, and thus can be an effective policy instrument if rapid dissemination is the objective. [ABSTRACT FROM AUTHOR]

Despite the growing attention to technology adoption in the economics literature, knowledge gaps remain regarding why some valuable technologies are rapidly adopted, while others are not. This paper contributes to our understanding of agricultural technology adoption by showing that a focus on yield gains may, in some contexts, be misguided. We study a technology in Ethiopia that has no impact on yields, but that has nonetheless been widely adopted. Using three waves of panel data, we estimate a correlated random coefficient model and calculate the returns to improved chickpea in terms of yields, costs, and profits. We find that farmers' comparative advantage does not play a significant role in their adoption decisions and hypothesize that this is due to the overall high economic returns to adoption, despite the limited yield impacts of the technology. Our results suggest economic measures of returns may be more relevant than increases in yields in explaining technology adoption decisions. [ABSTRACT FROM AUTHOR]

This article explores the mechanisms through which social learning mediates technology diffusion. We exploit an experiment on the dissemination of biochar, a soil amendment that can improve fertility on weathered and/or degraded soils. We find that social networks transmit information about the average benefits of adoption, but also its risk, and that observed variability inhibits uptake to a greater degree than positive average results engender it. Paradoxically, this relationship is stronger among networks that do not discuss farming, but disappears among farmer networks that do. This is resolved with a simple model of social learning about conditional, rather than unconditional benefit distributions. As farmers observe factors associated with outcomes in their networks, they constrain the distribution of their own potential outcomes. This conditional distribution diverges from the unconditional distribution that the econometrician observes. We conclude that social learning is characterized by implicit model-building by sophisticated decision makers, rather than simple herding towards observed good results. [ABSTRACT FROM AUTHOR]

Biofortification is a promising strategy to combat micronutrient malnutrition by promoting the adoption of staple food crops bred to be dense sources of specific micronutrients. Research on biofortified orange-fleshed sweet potato (OFSP) has shown that the crop improves the vitamin A status of children who consume as little as 100 grams per day, and intensive promotion strategies improve dietary intakes of vitamin A in field experiments. However, little is known about OFSP adoption behavior, or about the role that nutrition information plays in promoting adoption and changing diet. We report evidence from similar randomized field experiments conducted in Mozambique and Uganda to promote OFSP. We further use causal mediation analysis to study impact pathways for adoption and dietary intakes. Despite different agronomic conditions and sweet potato cropping patterns across the two countries, the project had similar impacts, leading to adoption by 61% to 68% of farmers exposed to the project, and doubling vitamin A intakes in children. In both countries, two intervention models that differed in training intensity and cost had comparable impacts relative to the control group. The project increased the knowledge of key nutrition messages; however, added knowledge of nutrition messages appears to have minimally affected adoption, conditional on assumptions required for causal mediation analysis. Increased vitamin A intakes were largely explained by adoption and not by nutrition knowledge gained, though in Uganda a large share of impacts on vitamin A intakes cannot be explained by mediating variables. Similar impacts could likely have been achieved by reducing the scope of nutrition trainings. [ABSTRACT FROM AUTHOR]

We develop a framework for analyzing small farms' adoption of indivisible technologies by using a threshold diffusion model. The article shows that different supply chains may emerge to enable the adoption of these technologies. When the gain from adoption is not affected by scale or ownership of the technology, independent technology dealers or larger farmers may buy the indivisible equipment that embodies the technology and rent it to farmers, or enable farmers to outsource the machine's services by supplying custom services. The article derives equilibrium prices and quantities in the output and equipment rental or outsourcing markets. The prices and quantities are a function of the heterogeneity of farmers and the features of the technology. Introducing the new indivisible technology will benefit larger adopting farmers and consumers but may hurt non-adopters. We illustrate our conceptual findings. [ABSTRACT FROM AUTHOR]

Value chains in the agrifood sector are undergoing a rapid process of modernization, characterized by the emergence of private standards and different systems of vertical value chain governance. In this article, we investigate the technological implications of these developments at the farm level. We model the conditions under which technology transfer and adoption will occur in a value chain setting and review the corresponding evidence on these issues. We find that technology transfer within a value chain can occur in an environment with imperfect credit and technology markets but depends on the surplus generated by the technology and the holdup opportunities within the value chain. We also discuss how these holdup opportunities affect bargaining power and the division of surplus and how the nature of the technology affects technology transfer and the implications for value chain governance. [ABSTRACT FROM AUTHOR]

Many decisions in agriculture are made over combinations of inputs and/or practices that may form a technology system linked through complementarity. The presence of complementarity among producer decisions can have far-reaching implications for market outcomes and for the effectiveness of policies intended to influence them. Identifying complementarity relations, however, is made difficult by the presence of unobserved heterogeneity. Drawing on recent methodological advances, in this paper we develop a test for complementarity between glyphosate tolerant soybeans and conservation tillage that overcomes certain limitations of previous studies. Specifically, we develop a structural discrete choice framework of joint soybean-tillage adoption that explicitly models both complementarity and the correlation induced by unobserved heterogeneity. The model is estimated with a large unbalanced panel of farm-level choices spanning the 1998-2011 period. We find that glyphosate tolerant soybeans and conservation tillage are complementary practices. In addition, our estimation shows that farm operation scale promotes the adoption of both conservation tillage and glyphosate tolerant seed, and that all of higher fuel prices, more droughty conditions, and soil erodibility increase use of conservation tillage. We apply our results to simulate annual adoption rates for both conservation tillage and no-tillage in a scenario without glyphosate tolerant soybeans available as a choice. We find that the adoption of conservation tillage and no-tillage have been about 10% and 20% higher, respectively, due to the advent of glyphosate tolerant soybeans. [ABSTRACT FROM AUTHOR]

In this article, we investigate the role of information transmission in promoting agricultural technology adoption and diffusion through extension services and social learning. We develop a theoretical model of technology adoption and diffusion, which we then empirically apply, using duration analysis, on a micro-dataset consisting of recall data covering the period 1994–2004 for olive-producing farms from Crete, Greece. Our findings suggest that both extension services and social learning are strong determinants of technology adoption and diffusion, while the effectiveness of each of the two informational channels is enhanced by the presence of the other. [ABSTRACT FROM AUTHOR]

Diversified agricultural households often use byproducts of one activity as inputs for another. For crop-livestock farmers, cereal production provides grain and crop residue, where the latter can be used as livestock feed. To properly assess the cost of introducing new technologies into such systems, one must value the implicit cost of byproducts, which is made difficult by missing byproduct markets. We estimate the shadow value of non-market crop stubble using household data from Morocco and find that stubble accounts for around one-quarter of the value of cereal production in a normal rainfall year and three quarters in a drought year. [ABSTRACT FROM PUBLISHER]

Can the availability of poorly-designed government insurance alter technology adoption decisions? A theoretical model of technology adoption and insurance incentive effects for a high- and low-risk technology is developed and explored empirically using a unique dataset of skip-row agronomic trial data. A multivariate nonparametric resampling technique is developed, which augments the trial data with a larger dataset of conventional yields to improve estimation efficiency. Skip-row adoption is found to increase mean yields and reduce risk in areas prone to drought. RMA insurance rules have incentive-distorting impacts which disincentivize skip-row adoption. [ABSTRACT FROM AUTHOR]

Genetically modified corn seed companies have recently created stacked varieties which combine more than one trait. This work develops a Bayesian model that demonstrates how uncertainty with a package technology can lead to an adoption pattern in which farmers move from single trait to stacked varieties. We then develop a semi-parametric panel data estimation to measure the effects of experience on the adoption of stacked varieties. The results underscore the importance of early experience in the subsequent adoption of stacked varieties. There is also evidence that farmers with more human capital learn faster and that, as time evolves, the importance of early experience decreases. [ABSTRACT FROM AUTHOR]

Governments, nonprofit organizations, and grower groups have expended considerable resources on agricultural extension and education programs, even though the evidence regarding the impact of these programs on farmers’ technology choices and productivity is mixed. Many of the studies finding substantial effects have methodological problems. We control for these methodological problems by using a panel selection model to examine the effect of the Biologically Integrated Orchard Systems program on California almond growers’ replacement of organophosphate pesticides with alternatives considered less environmentally harmful. We find that the program significantly decreased organophosphate use, suggesting that grower education programs can be an effective policy tool. [ABSTRACT FROM PUBLISHER]

This article proposes a model of technology adoption that integrates demand for individual traits of new technologies with the potential for heterogeneity based on farm and farmer characteristics. The model is applied to recent genetically modified corn adoption data from Minnesota and Wisconsin farmers, using a mixed-multinomial logit (MMNL) model to estimate the effects of traits and farm and farmer characteristics on adoption outcomes. This approach allows explicit recovery of estimates of farmers' shadow prices for individual technology traits. Results show the importance of producer and regional heterogeneity in preferences for seed traits. [ABSTRACT FROM AUTHOR]

It has long been argued that tenants tend to overexploit land, but this conventional wisdom has been derived largely without consideration of landlords' actions. We examine what happens when landlords can invest in durable conservation measures in addition to choosing rental contract terms. When tenants are risk neutral, landlords overinvest in conservation under cash rental contracts but can achieve first best levels of output and protection against land degradation when conservation investment is combined with share rental. When tenants are risk averse, the first best is unattainable. In this case, conservation investment combined with share rental results in output levels below the first best, while equilibrium conservation investment may be greater or less than the first best. These results suggest that contract form and conservation investments are likely made simultaneously, so that econometric studies of conservation practice adoption that treat rental status as exogenous are likely subject to bias. [ABSTRACT FROM AUTHOR]

We develop a dynamic model of technology adoption that generalizes previous literature by incorporating technology age, reversible investment, variable inputs and outputs, and stochastic prices. The model is calibrated for irrigated cotton production in California. Optimal investment exhibits a significant vintage capital effect which provides a new candidate explanation for delayed technology diffusion. We show that the hurdle rate derived by option value models can be partially explained by the assumption of irreversible investment, and simulations demonstrate this assumption has regional policy relevance. Uncertainty affects optimal investment but has a declining effect with technology age. [ABSTRACT FROM AUTHOR]

This article empirically models a strategic game of technology adoption of shuttle train grain elevators with information on location of the firm and its competitors. A spatial econometric model illustrates the role of spatial interdependence of rivals' decisions as well as agronomic and competitive variables on discrete adoption decisions. The analysis assesses equilibria conditions that characterize technology adoption, in this case of shuttle train adoption, and the results provide an explanation of shuttle train adoption decisions in the grain handling industry in which spatial competition is critical. [ABSTRACT FROM AUTHOR]

We develop a water allocation and irrigation technology adoption model under the prior appropriation doctrine with asymmetric information among heterogeneous farmers and between farmers and water authorities. We find that adverse selection reduces the adoption of modern irrigation technology. We also show that even with asymmetric information, incentives for water trade exist and lead to additional technology adoption with gains to all parties. This suggests that under asymmetric information, a thin secondary market improves the allocation of water resources and induces additional adoption of modern irrigation technologies. [ABSTRACT FROM AUTHOR]

We introduce a method for properly attributing observed productivity and risk changes among new production methods, farmers, and plots by controlling for farmer and plot heterogeneity. Results from Madagascar show that the new system of rice intensification (SRI) is indeed a superior technology. Although about half of the observed productivity gains appear due to farmer characteristics rather than SRI itself, the technology generates the estimated average output gains of more than 84%. The increased estimated yield risk associated with SRI would nonetheless make it unattractive to many farmers within the standard range of relative risk aversion. [ABSTRACT FROM AUTHOR]

The adoption of more efficient farming practices and technologies that enhance agricultural productivity and improve environmental sustainability is instrumental for achieving economic growth, food security, and poverty alleviation in sub-Saharan Africa. Our research examines the interaction between public investments, community health, and adoption of productivity and land enhancing technologies by households in the northern Ethiopian state of Tigray. Agricultural technology adoption decisions are modeled as a sequential process where the timing of choices can matter. We find that time spent sick and opportunity costs of caring for sick family members are significant factors in adoption. Sickness, through its impact on household income and labor allocation decisions for healthcare and other activities, significantly reduces the likelihood of technology adoption. Our findings suggest that agencies working to improve agricultural productivity and land resource conservation should consider not only the financial status of potential adopters, but also their related health situation. [ABSTRACT FROM AUTHOR]

This article exploits panel data from Wisconsin dairy farmers to examine the dynamics of recombinant bovine somatotropin (rBST) adoption and to identify the characteristics that distinguish among nonadopters, disadopters, and early and late adopters. Panel methods are used to control for omitted variables and endogenous regressors that call into question coefficient estimates derived from cross-section adoption models. The results, however, confirm previous findings that larger farms with complementary feeding technologies are more likely to adopt rBST, nonadopters appear quite unlikely to become adopters, and rBST adoption will remain at rather moderate levels in Wisconsin. [ABSTRACT FROM AUTHOR]

A model of farmer decision making is developed to determine the extent to which uncertainties about soil fertility and weather affect the value of site-specific technologies (SSTs) using jointly estimated risk and technology parameters. Uncertainty can lead risk-averse farmers to apply more fertilizers and generate more pollution than in the certainty case. Ignoring uncertainty and risk aversion would overestimate the economic and environmental benefits of SSTs and underestimate the subsidy required to induce adoption. Accounting for uncertainties and risk preferences might explain the low observed adoption rates of SSTs. Improving the accuracy of SSTs would increase the incentives for adoption. [ABSTRACT FROM AUTHOR]

Biofortification is a promising strategy to combat micronutrient malnutrition by promoting the adoption of staple food crops bred to be dense sources of specific micronutrients. Research on biofortified orange-fleshed sweet potato (OFSP) has shown that the crop improves the vitamin A status of children who consume as little as 100 grams per day, and intensive promotion strategies improve dietary intakes of vitamin A in field experiments. However, little is known about OFSP adoption behavior, or about the role that nutrition information plays in promoting adoption and changing diet. We report evidence from similar randomized field experiments conducted in Mozambique and Uganda to promote OFSP. We further use causal mediation analysis to study impact pathways for adoption and dietary intakes. Despite different agronomic conditions and sweet potato cropping patterns across the two countries, the project had similar impacts, leading to adoption by 61% to 68% of farmers exposed to the project, and doubling vitamin A intakes in children. In both countries, two intervention models that differed in training intensity and cost had comparable impacts relative to the control group. The project increased the knowledge of key nutrition messages; however, added knowledge of nutrition messages appears to have minimally affected adoption, conditional on assumptions required for causal mediation analysis. Increased vitamin A intakes were largely explained by adoption and not by nutrition knowledge gained, though in Uganda a large share of impacts on vitamin A intakes cannot be explained by mediating variables. Similar impacts could likely have been achieved by reducing the scope of nutrition trainings. JEL codes: I15, O12, O13, Q12., (© The Author(s) 2018.)