A Study of the Adoption of Technology in Agriculture: Evidence from the Indonesian Paddy-Rice Farmer

Abstract

Farmland has been facing problems due to the rise in housing, demand for industrial and public infrastructures. On the other side, the world population increases continuously, and agriculture is responsible for providing food. In that case, mechanization in agriculture starts. Accordingly, the study intends to evaluate a broader view of the determinants and barriers leading the rice-paddy farmer on production factors before and after the farmer empowerment law legalized and discussed the potential endogeneity of covariates household-level dataset. Using 365 (2010) and 389 (2016) national farm household-level survey data of farmers in the five dominant paddy rice producers. Findings show that paddy-rice farming technology has improved agricultural production. We treated technology as endogenous, age, and training programs as additional instruments for technology. Our results show that old farmers (aged more than 60) less likely to use modern technology and training program matters have statistically significant to the farming occupation.