Learning from neighboring farmers: Does spatial dependence affect adoption of drought-tolerant wheat varieties in China?

Abstract

The adoption of improved crop varieties, such as drought-tolerant varieties, plays a crucial role in addressing climate change. In this study, we explore how and to what extent spatial interactions between farmers and neighboring farmers affect the adoption of drought-tolerant wheat varieties (DTWVs), using data collected from rural households in China. A spatial Durbin probit model is utilized to identify the spatial patterns in DTWVs adoption. Results show that spatial dependence exists in DTWVs adoption. Spatial dependence is positively associated with wheat farmers’ DTWVs adoption decisions, and the spatial effects mainly arise from the neighboring farmers’ adoption decisions and information spillover via smartphone use and extension service contacts. Further analysis reveals that DTWVs adoption improves farm performance by increasing both wheat yields and farm profits significantly. Our findings underscore the necessity of considering spatial interactions between farmers when designing and promoting innovative agricultural technologies in rural areas.