DETERMINANTS OF AGRICULTURAL INNOVATION AMONG SMALL FARMERS IN MEXICO. AN ECONOMETRIC APPLICATION OF THE TOBIT MODEL

Abstract

Understanding agricultural innovation is crucial as it involves establishing conditions for productivity growth in the agrifood sector through strategies and public policies that improve farmers’ production, profitability, and management practices. The objective of this article was to measure agricultural innovation among small farmers and to identify the factors that determine it. A Tobit-type econometric model was used to identify the characteristics of the producers, the economic and productive profile of the farms, and the size of the extension groups, all of which influence innovation. Information on rural extension policy beneficiaries in Mexico for the period 2014-2017 was integrated. The statistical population was 2976 farmers. The findings reveal that higher education levels and a younger age of producers had a positive effect; producers with small farms were more likely to adopt technological practices. On the other hand, factors negatively affecting innovation were higher on-farm and off-farm incomes. The article concludes with public policy recommendations to promote agricultural innovation in Mexico.