Heterogeneous effects from integrated farm innovations on welfare in Rwanda

Abstract

Using a multinomial endogenous switching regression model, this study examined the factors that influence farmers’ decisions to adopt multiple integrated technologies and then estimated the effects of adopting integrated farm technologies on farm yield, farm income, and household food expenditure. The results showed that adopting higher-order suites of technologies provides higher dividends to farmers in terms of farm yield and income relative to a single technology adoption. Among different integrated technologies, the study found that the technology mix involving crop and soil innovations exerts the greatest impact. Further findings from the study, however, shows that there are no statistical differences in food expenditure from adopting higher-order packages of technologies, albeit the impacts being positive. This could explain the diversion of additional gains obtained towards investing in family assets, child education, and health expenditures. In addition, the study suggests that the level of education of the family head and access to credit significantly influence the decision to adopt multiple integrated technologies. The study provides suggestive evidence for a shift in policy design for the country’s farm productivity coupled with investment policies that promote access to credit and education, especially among rural communities.