agriregionieuropa Assessing the effect of the CAP on farm innovation adoption. An analysis in two French regions Bartolini Fabio 1 ; Latruffe Laure 2,3 ; Viaggi Davide 1 1 Alma mater studiorum - University of Bologna, Department of Agricultural Economics and Engineering, Italy 2 INRA, UMR1302 SMART, F-35000 Rennes, France 3 Agrocampus Ouest, UMR1302 SMART, F-35000 Rennes, France 122 nd European Association of Agricultural Economists Seminar Evidence-Based Agricultural and Rural Policy Making Methodological and Empirical Challenges of Policy Evaluation February 17 th – 18 th , 2011, Ancona (Italy) associazioneAlessandroBar tola studi e ricerche di economia e di politica agraria Centro Studi Sulle Politiche Economiche, Rurali e Ambientali Università Politecnica delle Marche
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Assessing the effect of the CAP on farm innovation adoption.
1 Alma mater studiorum - University of Bologna, Department of Agricultural Economics and Engineering, Italy2 INRA, UMR1302 SMART, F-35000 Rennes, France
3 Agrocampus Ouest, UMR1302 SMART, F-35000 Rennes, France
122nd European Association of Agricultural Economists Seminar
Evidence-Based Agricultural and Rural Policy MakingMethodological and Empirical Challenges of Policy Evaluation
February 17th – 18th, 2011, Ancona (Italy)
associazioneAlessandroBartola studi e ricerche di economia e di politica agraria
Centro Studi Sulle Politiche Economiche, Rurali e AmbientaliUniversità Politecnica delle Marche
To analyse the process of future innovation adoptions and to identify the innovation adoption determinants with focus on – farmers past innovation adoption behaviour– effects of agricultural policy in the promotion
Data used (1)Overview Questionnaire used to collect information of both past innovation
adoptions and stated intention about future innovation adoptions on the same farm
Face to face questionnaire Questionnaire address:
– Farm, farmer and household characteristics– Information about the past
• innovation adopted;• source of information used to collect information about innovation adopted;
– Stated intentions under policy scenarios• Farm strategy (exit, growth, changes in the factor use etc)• stated intention about future innovation adoptions
Questions about the stated intentions are repeated for the two policy scenarios
Questionnaire addressed to 295 farmers in two regions in France– 140 respondents in Centre CSA– 155 respondents in Midi-Pyrénées CSA
Data used (3)Future innovations (used ZIP model)“intention to adopt the following category of
innovation in the next 10 years (YES/NO)”• Robotisation/precision farming• New irrigation systems or input reducing new technology• E-commerce/direct selling or other innovation in
commercialisation of the farmer’s production• Energy crops or production of energy by the farm through
solar panel, wind or biogas etc• Other innovation, a category let “blank” for adding other
innovations that surveyed farmers could intend to adopt in the next years
Sum of the future innovation adoptions (next 10 years)
Parameter estimated under the baseline scenario(Model 1)
Parameter estimated under the NO-CAP scenario(Model 2)
Innovators and old (dummy) +.4763Laggards and old (dummy) -.4601Late majority (dummy) -.3642Information collected only directly by the farmer (dummy) -.3645Share of farm income from agricultural activity in total household income (%) -.0068
Household lives on the farm (dummy) +.3698 +.4243
Educational level lower than secondary school (dummy) -.7200
External labour used on farm (# of full time equivalents) +.831 +.1075UAA (ha) +.0018
Household labour + external labour used on farm (# of full time equivalents) -2.164Age of respondent (Ln of age_y) +9.927Midi-Pyrénées region (dummy) -2.167Share of farm income from agricultural activity in total household income (%) +.0349Sources used to collected information about past innovations (#) -1.7898Late majority (dummy) +2.301Laggards and old (dummy) +1.577
Preliminary results confirm that the process of innovation adoption does not follow breakthrough, and are not discontinuous, etc,
The storyline about past innovation, the number of past innovations adopted and the timing of adoption, are significant explanatory variables of the new technology adopting process
Results highlight that the CAP strongly affects the innovations– the CAP abolishment increases the exit (also those farmers
who state intention to innovate under the baseline scenario)– the CAP abolishment reduces the access to any innovation for
those farmers who could be grouped in the category of laggards or late adopters
– in a scenario without CAP, the information and the source of information collected strongly affect the innovation adoption
Need to better targeting policy instruments aimed to encouraging innovation adoption or diffusion through financial incentive of innovation
Need of specific instrument aimed to promoting innovation through a development of a system of consultancy specific for the innovations
