Under contract farming, companies usually develop compulsory standardized technical systems for farmers in developing economies. However, in actual production, farmers often have differences in adoption intensity. Using data from 384 households and multinomial endogenous treatment effect regression, this study analyzes factors affecting the adoption intensity of farmers regarding standardized technical systems and estimates the impacts of adoption intensity of the standardized technical systems on household incomes in Chongqing, China. We adapt a multinomial endogenous treatment effect regression framework to correct for selection bias and endogeneity originating from both observed and unobserved heterogeneity. The results show that some factors could significantly affect the adoption intensity, such as farmers, satisfaction with technicians, perception of technology, attitude toward risks of adopting technologies, number of technical trainings, the proportion of leased land, and distances to townships and technology extension stations. Different from current perspectives, the results also indicate that the highest adoption intensity of farmers regarding standardized technical systems does not bring the greatest benefits. Based on the characteristics of a plot, medium adoption intensity has a significant effect on quality improvements and income growth. The conclusion of this study provides an empirical basis for the formulation and evaluation of policies for farmers that apply standardized technology systems in developing countries.
Using the microdata for tobacco farmer households in Chongqing, China, this article analyses the determinants of adopting additional multiple agricultural technologies and their impact on income based on implementing a standardized technology system by a tobacco company. In this paper, selection bias from the observed and unobserved heterogeneity was corrected using a multinomial endogenous treatment effects model, and the endogenous properties were eliminated. The empirical results show that the adoption of a variety of additional agricultural technologies was determined by famer’s education level, years of tobacco planting, household size, number of technical training sessions, distance from farmer’s family to the nearest tobacco technology extension station, distance from farmer’s family to the nearest township, proportion of land suitable for machine farming, proportion of leased land. Different from empirical judgment, integrated pest management and balanced fertilization are the most effective additional technology combination strategies for increasing farmers’ income instead of combining all additional comprehensive technologies. The research results suggest that Chongqing Tobacco Company should further strengthen the training of tobacco farmers and guide tobacco farmers to take appropriate pesticide and fertilizer input beyond the standardized technical system, especially for those tobacco farmers far away from the tobacco technology extension station.
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