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Can Cooperative Supports and Adoption of Improved Technologies Help Increase Agricultural Income? Evidence from a Recent Study

Nawab Khan (), Ram L. Ray (), Hazem S. Kassem (), Muhammad Ihtisham (), Badar Naseem Siddiqui () and Shemei Zhang ()
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Nawab Khan: College of Management, Sichuan Agricultural University, Chengdu 611100, China
Ram L. Ray: College of Agriculture and Human Sciences, Prairie View A&M University, Prairie View, TX 77446, USA
Hazem S. Kassem: Department of Agricultural Extension and Rural Society, King Saud University, Riyadh 11451, Saudi Arabia
Muhammad Ihtisham: College of Landscape Architecture, Sichuan Agricultural University, Chengdu 611130, China
Badar Naseem Siddiqui: Department of Agricultural Extension, PMAS-Arid Agriculture University, Rawalpindi 46000, Pakistan
Shemei Zhang: College of Management, Sichuan Agricultural University, Chengdu 611100, China

Land, 2022, vol. 11, issue 3, 1-18

Abstract: Global climate change may result in major environmental issues that have already affected and will continue to affect agricultural sector in the future. A continuing effort to utilize and adopt new agricultural technologies is necessary to mitigate climate change and increase agricultural income. Agricultural cooperatives are gradually being used in emerging countries to encourage improved technology and reduce food insecurity and poverty. This research analyses the influence of cooperative supports (CS) and technology adoption (TA) on agricultural income in Pakistan. It applied the propensity score matching (PSM) technique to evaluate the productivity on survey data from 498 wheat growers to conduct counterfactual analysis for farmers in Pakistan. In addition, a dual selection model (DSM) was applied to resolve the bias in sample selection caused by observed and unobserved aspects of survey data. The results showed that, contrasted with non-membership and non-adopters, growers who joined CS and TA could boost agricultural income by 2.78% and 2.35%, respectively. Stimulatingly, the influence of less-revenue farmers on agricultural income was more substantial than that of high-income farmers. Agricultural income of growers who attached cooperatives and adopted improved agricultural technology enhanced by 5.45% and 4.51%, respectively. These results, among others, emphasize the optimistic role of growing CS and TA in boosting wheat farmer’s income. The findings of the study showed strong relationships among education, age, skill, training, gender with CS and TA, and agricultural income. Overall, this study can be helpful in conducting similar studies in other emerging/developing countries for wheat or any other crop growers.

Keywords: cooperatives; PSM; DSM; improved agricultural technology; climate change; adoption; income; Pakistan (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2022
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