Information Acquisition Ability and Farmers’ Herd Behavior in Rice–Crayfish Coculture System Adoption

Abstract

Rice–crayfish coculture systems (RCSs) have been widely promoted in China as an efficient circular agriculture model that can simultaneously improve rice quality, raise the efficiency of utilization of resources, and increase farmers’ incomes. However, the herd behavior of farmers in the adoption of the rice–crayfish coculture system warrants more attention, as the rational adoption of this system by farmers is a prerequisite for achieving the above objectives. This paper analyses the formation mechanism of farmers’ herd behavior based on information cascade theory. Using micro-survey data from 603 farmers in China and a bivariate probit model, we examine the existence of herding effects in the adoption of RCSs by farmers and the inhibitory effect of information acquisition capability on herd behavior. To address possible endogeneity issues, we also conducted a robustness test using the IV-probit model. Furthermore, we tested for between-group differences in agricultural income between farmers with herding adoption and non-herding adoption. The study reveals that the larger the number of prior adopters, the higher the probability of blind adoption behavior by farmers, indicating the existence of a herd effect. Information acquisition ability could significantly inhibit the herd behavior of farmers in the adoption of RCSs. We also found that farmers’ herd behavior in the adoption of these systems was not economically rational. Based on the research findings, we proposed several constructive suggestions for policy perfection.