A new GLO Discussion Paper reveals that the provision of extension services increases agricultural technology take-up in Uganda.
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GLO Discussion Paper No. 456, 2020
Agricultural Transformation and Farmers’ Expectations: Experimental Evidence from Uganda – Download PDF
by Bonan, Jacopo & Kazianga, Harounan & Mendola, Mariapia
GLO Fellows Harounan Kazianga & Mariapia Mendola
Author Abstract: Why adoption rate of potentially profitable agricultural technologies in Africa remains low is still puzzling. This paper uses a randomized control trial to study Ugandan subsistence smallholders’ decisions to adopt cash crops. A unique way of eliciting farmers price and yield expectations allows us to investigate the role of farmers’ ex-ante beliefs about crop profitability on adoption decisions. We find that the provision of extension services increases oilseeds adoption by 15%, and farmers who under-estimate oilseeds price at baseline are the most likely to adopt the new crops. The results suggest that changes in expectations drive agricultural technology take-up.
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