Extension services, product quality and yields: the case of grapes in Argentina

Abstract

This article studies the impact of publicly subsidized agricultural extension services on yields and product quality. We use panel data from grape producers in Mendoza, Argentina to estimate the impacts of farmer trainings. We find a negative overall impact on yields and evidence of a positive average impact on the adoption of higher-quality grape varieties. By analyzing the dynamic pattern of the estimated effects, we find evidence of a temporary decrease in yields suggesting the existence of an adjustment process following the introduction of higher-quality grapes. The overall negative effect on yield is driven by a sharp drop in the year of participation. This fades after year one, and two to three years after treatment we observe increases in higher-quality grape production. Findings reinforce the importance of temporal dimension of extension services.