Bt cotton adoption : a double-hurdle approach for north Indian farmers

Abstract

This article adds to the existing literature by identifying determinants of the Bt cotton adoption decision, as well as what influences the extent (or level) of adoption. Econometric results show that information is a vital factor behind adoption and level of adoption. Experience is a barrier to Bt cotton diffusion, while available credit encourages farmers to adopt. As farmers consider Bt cotton a remedy for the negative implications of pesticide application in non-Bt production, those with higher health costs are more likely to adopt. Higher profit potential is an incentive for farmers with relatively little farm area to adopt Bt cotton. Farmers with poor-quality soil are more likely to adopt, and their level of adoption is also greater. This is due Bt cotton being more suitable for areas with such soils, as compared to crops like rice. Thus, Bt cotton diffusion is more likely to be successful among relatively small farms and those in less fertile areas.