Adaptation of smallholder farmers to climate risks: Remittances and irrigation investment in the Republic of Moldova

Abstract

Drought is one of the main limiting factors affecting crop production in many areas in the world. Pressurized irrigation systems enable more efficient use of water compared to surface irrigation systems but are rarely used by small farmers due to higher initial investment and energy costs. The main question investigated in the study is if remittances affect investment in pressurized irrigation (drip or sprinkler irrigation systems). A quantitative questionnaire survey was conducted among 234 small-scale farmers in the Republic of Moldova in 2016. The main result of the binary probit regression model revealed that remittances increased the likelihood of utilization of pressurized irrigation facilities in the study region. This study further contributes to a better understanding of factors that affect farmers’ adoption of pressurized irrigation systems. This knowledge helps policy makers and development organizations shape proper measures to increase the diffusion of this technology and thus the adaptation of smallholder farmers to climate risks. • The use of pressurized irrigation among small farmers is limited in the study area. • High investment and maintenance costs are unaffordable for the majority of farmers. • Remittances facilitate the adoption of pressurized irrigation infrastructure. • Remittances replace a not very well functioning credit market.