Analysis of Determining Factors of Agricultural Income among Farm Households Participating in Farming Cooperative Using a Sample Selection Model

Abstract

Employing the Heckman model and drawing on the national database, this study scrutinized the determinants influencing the selection of participation in farming cooperatives, as well as the impact of such participation on the agricultural income of farm households. Participation probabilities were observed to rise notably among males in their 50s and 60s with larger business scales, while protracted periods of farming experience and education correlated positively with the likelihood of engagement in farming cooperatives. Farm households actively participating in farming cooperatives demonstrated a notable elevation in their income levels compared to those who abstained from participation. Among the subset of farm households engaged in agricultural cooperatives, the utilization of ICT was linked to a more agricultural income. Given the discernible positive impact of farming cooperatives on the amplification of agricultural income, there arises a compelling need for the government to fortify policies aimed at nurturing the growth and development of these cooperatives.