Role of institutional factors in climate‐smart technology adoption in agriculture: Evidence from an Eastern Indian state

Abstract

Climate change threatens rural livelihoods by adversely affecting agricultural production through reduced crop yields, harvest loss, and increased cost of production. Climate-smart agriculture (CSA) practices have emerged as a possible solution to ensure food security by adapting to climate risks on the one hand, and mitigating GHG emissions from agriculture, on the other hand. However, resource-poor farmers often face both financial and knowledge constraints to adopt CSA practices, and thus, institutional support plays a crucial role in overcoming those barriers. Therefore, this study uses primary data collected from 248 farm households in the Eastern Indian state of Odisha to examine the role of institutional factors in CSA adoption. Almost 95% of the sample farmers experienced the effects of climate change, and many have adopted CSA practices such as rescheduling planting (78%), crop rotation (56%), crop diversification (35%), micro-irrigation (17%), and drought-resistant seeds (16%). Probit models are estimated to explore the key determinants of the adoption of these five major practices. Results show that factors such as government extension service, farmer field school participation, subsidies, access to energy, and perception of climate shocks are the major determinants. Further, the coefficient of interaction between landholding and credit availability on the decision to adopt CSA is positive. Thus, agricultural policies to improve institutional support, such as subsidies on farm machinery, extension support, credit facility, and field demonstration of technologies, are crucial to upscale CSA adoption in the region.