Iranian Journal of Agricultural Economics and Development Research

Iranian Journal of Agricultural Economics and Development Research

Analysis of Factors affecting adoption and development of Canola cultivation in Tabriz county: Application of Double-Hurdle Model

Document Type : Research Paper

Authors
Maryam Chahi Beyragh 1
Azadeh Falsafian 2
1 Department of Agricultural Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran
2 Department of Agricultural Management, Tabriz Branch, Islamic Azad University, Tabriz, Iran.
10.22059/ijaedr.2023.346738.669165
Abstract
This study aims to identify the factors affecting the adoption and development of canola cultivation from the farmers' perspective. The required data was collected from a sample of 180 canola farmers and 180 other farmers in Tabriz County using random sampling in 2020. The Double-Hurdle model was applied to analyze the factors that impact the probability of canola planting. The first stage of the model revealed that education, membership in cooperatives, canola price, proportion of farm income, and participation in training classes had a positive impact on the probability of canola planting. On the other hand, the number of agricultural plots and the age of agriculture had a negative effect. In the second stage of the model, the Tobit model was used to show that participation in training classes, canola planting experience, family labor, and land ownership had a positive impact on canola planting. In contrast, machinery costs and the number of agricultural plots had a negative impact. This study suggests that the adoption of canola is heavily influenced by its real price. Therefore, the government should increase the guaranteed price for canola to encourage more farmers to cultivate it. As a result, it is recommended that the government conducts more extension classes to increase farmers' knowledge and help them apply new information on canola cultivation. It's important to note that none of the proposed solutions work alone. Since farmers' behavior is influenced by various factors, policymakers should consider all factors comprehensively as a policy package to develop canola cultivation.
Keywords
Acreage
Adoption
Canola Double-Hurdle Model
Tobit Model

Extended Abstract

Objectives

Canola is an essential oilseed crop worldwide. Due to Iran's dependence on importing oilseeds, achieving self-sufficiency in oilseed production has been a major goal of the government's food policy in the last two decades. Despite the favorable climatic conditions in the country, farmers have been slow to adopt canola cultivation. Therefore, promoting the widespread adoption of canola farming and its development is a challenge for agricultural development policy in Iran. This study aims to identify the factors affecting the adoption and development of canola cultivation from the farmers' perspective. For this purpose, data was collected from a sample of 180 canola farmers and 180 other farmers in Tabriz County using random sampling in 2020.

 

Methods

    Econometric models can help identify the factors that influence the adoption and development of crops like canola. Models like Logit, Probit, Tobit, Two-stage Heckman, and Double Hurdle models, which have a limited dependent variable, can be particularly useful for this purpose. Of these models, only the Double Hurdle model and Two-stage Heckman model can distinguish between the factors that influence the adoption of crop cultivation and the factors that influence the cultivation of the crop itself. However, the Double Hurdle model is advantageous as it takes into account the factors that affect the development of the cultivated area of the crop, including the reasons for farmers not choosing to plant voluntarily. Therefore, the Double Hurdle model was used to achieve the objectives of the study.

 

Results

     The Double-Hurdle model was used to analyze the factors that impact the probability of canola planting. The first stage of the model revealed that education, membership in cooperatives, canola price, proportion of farm income, and participation in training classes had a positive impact on the probability of canola planting. On the other hand, the number of agricultural plots and the age of agriculture had a negative effect. In the second stage of the model, the Tobit model was used to show that participation in training classes, canola planting experience, family labor, and land ownership had a positive impact on canola planting. In contrast, machinery costs and the number of agricultural plots had a negative impact.

 

Discussion

    This study suggests that the adoption of canola is heavily influenced by its real price. Therefore, the government should increase the guaranteed price for canola to encourage more farmers to cultivate it. Additionally, the study found that education and contact with extension agents have a positive impact on canola production. As a result, it is recommended that the government conducts more extension classes to increase farmers' knowledge and help them apply new information on canola cultivation. It's important to note that none of the proposed solutions work alone. Since farmers' behavior is influenced by various factors, policymakers should consider all factors comprehensively as a policy package to develop canola cultivation.

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Iranian Journal of Agricultural Economics and Development Research
Volume 54, Issue 3
Summer 2023
Pages 663-679