Impacts of Capital Endowment on Farmers’ Choices in Fertilizer-Reduction and Efficiency-Increasing Technologies (Preferences, Influences, and Mechanisms): A Case Study of Apple Farmers in the Provinces of Shaanxi and Gansu, China

Abstract

On the basis of data collected from 1208 apple farmers in the provinces of Shaanxi and Gansu, this study utilizes the weighted-frequency method to investigate the priority sequence of farmers’ preferences in choosing fertilizer-reduction and efficiency-increasing technologies. Subsequently, ordered-probit models, a mediating-effect model, and a moderating-effect model are employed to empirically analyze the influence of capital endowment on farmers’ choices related to fertilizer-reduction and efficiency-increasing technologies and their underlying mechanisms. The study further examines how agricultural-technology extension moderates these mechanisms. The main findings are: (1) The priority sequence of farmers’ choices concerning fertilizer-reduction and efficiency-increasing technologies is as follows: organic fertilizer substitution, new efficient fertilizers, soil testing and formula fertilization, green manure cultivation, straw mulching, fertilizer-reduction application, and deep mechanical application. (2) Capital endowment significantly enhances farmers’ choices in fertilizer-reduction and efficiency-increasing technologies. (3) The mechanism analyses indicate that capital endowment can promote farmers’ choices in fertilizer-reduction and efficiency-increasing technologies by improving their information-acquisition capabilities. (4) Moderation effects reveal that agricultural-technology extension methods, such as technical training, financial subsidies, and government publicity, significantly and positively moderate the relationship between information-acquisition capabilities and farmers’ choices in fertilizer-reduction and efficiency-increasing technologies. The moderating effects of educational attainment and generational differences on different agricultural-technology extension methods are heterogeneous. Technical training, financial subsidies, and government publicity can effectively enhance the positive impact of information-acquisition capabilities on farmers with a higher educational attainment. Financial subsidies can effectively strengthen the positive impact of information-acquisition capabilities on the older generation of farmers. Therefore, it is recommended to prioritize the accumulation of farmers’ capital endowment, improve their information-acquisition capabilities, and intensify agricultural-technology extension efforts, especially taking into account farmers’ educational attainment and generational differences.