Exploring the Factors of Adoption of High Value Crops (A Case Study of District Ghizer GB)

ABSTRACT

The research explores the Socioeconomic factors influencing farmer’s intention to adopt high-value crops, specifically Alfalfa in Ghizer District of Gilgit-Baltistan (GB). Firstly, we compare the profitability by profit model and found that Alfalfa is slightly more profitable than conventional crops (Maize & Barley) collectively. Secondly we leveraging a logistic regression model, the study investigates how factors including family structure, off-farm employment, education level of farmer, years of farming experience and tractor access to the field affects the decision to cultivate Alfalfa vis à-va traditional crops such as Maize or Barley by farmers. The basic idea proposed that Alfalfa would be more profitable than conventional crops. According to an analysis of data from 128 farmers, Alfalfa is more profitable than conventional crops, with an average per kanal per year profitability of PKR 27,705, compared to a combined average of PKR 21,880. A logistic regression model was applied to investigate the determinants of adoption of Alfalfa. Among the possible explanatory variables, family type (nuclear or joint), off-farm employment, education (measured in years of schooling), farming experience, profit, and whether a tractor can reach to the field or not (trf) were considered. The empirical evidence suggests that nuclear families have greater tendency to adopt Alfalfa than joint families, with an odds ratio of 197.2. Households with off-farm employment are likewise more likely to grow Alfalfa (odds ratio of 9.6) than their counterparts. The education is not statistically significant implying that education is not contributing in substantiating the adoption of Alfalfa. However, farming experience has a detrimental impact on Alfalfa adoption (odds ratio of 0.9). Furthermore, fields that are not accessible by tractor are likely to be used for Alfalfa production (odds ratio of 0.2), implying that fields where mechanization is not reaching because of poor infrastructure are likely to moving towards Alfalfa. These results highlight Alfalfa’s economic potential and the socioeconomic elements influencing its adoption. The results suggest that nuclear families are highly motivated to adopt Alfalfa because of labor saving nature of the crop compared to other competing crops. Similarly, off-farm employment provides more space to take risk to adopt high income generating crops i.e. Alfalfa. Hence, to promote high-income crops like Alfalfa in the area, policymakers should promote off-farm employment by developing small and medium sized enterprises (SME) in the area and reassessing training programs. Future research may investigate additional socioeconomic factors to study their impact on adoption, as well as follow changes in adoption rates and profitability over time, in order to provide comprehensive insights and practical recommendations for promoting lucrative and sustainable agriculture methods.

Meta Data

Author: Sajad Ali
Supervisor:Abedullah
External Examiner: Muhammad Asad ur Rehman Naseer

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