Organic fertilizer is one of the critical elements of organic and sustainable agricultural development. This study analyzes the economic impact of organic fertilizer on rice farms' yield and technical efficiency (TE) in Bangladesh. The Stochastic Production Frontier (SPF) approach has been employed by using a sample of 2652 rice plots covering seven broad agro-ecological zones of Bangladesh. It also addresses self-selection into the organic fertilizer choice using propensity score matching (PSM) that corrects observed selection bias that potentially influences both decisions to choose and technical efficiency. After PSM, organic fertilizer users produce 16.67% higher yield by using 12.1%, 9.40%, and 42.1% less labor, other inputs, and farm capital for rice production. The organic fertilizer users are significantly 3.79% more efficient than non-user, suggesting organic fertilizer substantially contributes to enhancing the technical efficiency of rice in Bangladesh. Moreover, the average treatment effect on the treated (ATETs) in different matching is positively significant and confirms the positive impact of organic fertilizer on rice farming. Government and non-government organizations should encourage farmers to extensively use organic fertilizer for better production through soil health development and reduce the pressure of chemical fertilizer import and use.
This paper explores the determinants of sustainable soil management (SSM) practices among Bangladeshi paddy farmers. Relevant information from 2681 paddy farmers was extracted from the nationally representative Bangladesh Integrated Household Survey (BIHS 2018–2019) dataset. Four SSM practices were commonly practiced with 37.04% of the sampled farmers adopting at least one SSM practice. ‘Use of organic fertilizer’ was the most common practice, whereas the other three, viz. ‘zero-tillage’, ‘incorporate paddy residue’, and ‘legume cultivation’ were less practiced by the farmers. Econometric analysis revealed that differences in the farmers’ socio-economic conditions, environmental and institutional settings were the main drivers of the SMM practice decisions. Climatic factors were critical in shaping the farmers’ decision to adopt SSM practices. Education, access to information and extension services increased the adoption probability of SSM practices. Improved infrastructure and being located within the economically vulnerable areas (e.g., Feed the Future zone) influenced the farmers’ adoption decision, but the magnitude and direction varied depending on the individual circumstances. The farmers’ socio-economic conditions, e.g., assets and farm size, also had a notable influence on the adoption of SSM practices. Policy implications include strengthening extension services, incorporation of climatic information in education and dissemination of information on SSM practices, particularly to farmers living in vulnerable areas.
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