Determinants of Irrigation Technology Adoption and Acreage Allocation in Crop Production in Louisiana, USA

Abstract

This study identifies the determinants of furrow irrigation technology adoption in soybean production. Further, it estimates and evaluates the determinants of acreage allocation under different irrigation technologies in Louisiana crop production. Through a comprehensive mail survey, we acquired the necessary data, employing them to conduct IV-probit estimations specifically focused on irrigation technology adoption. Simultaneously, we utilized the same dataset to deploy multivariate fractional regression models, facilitating a robust exploration and evaluation of the acreage allocation of crop production in the state. The estimated results indicate that education has a significant negative effect on furrow irrigation adoption, while laser leveling has a significant positive effect on it. In particular, the expected probability of furrow irrigation adoption by farmers with a college degree or higher is 45% lower than farmers with education below the college degree. Education, risk attitude, and landholding have a negative effect, and rent status and have a positive effect on acreage allocation under the furrow irrigation system. Our study implies that appropriate policy tools may motivate farmers to adopt cost-effective as well as water-conserving irrigation technology.