Abstract

This study addresses a gap in literature on the adoption of improved agricultural technologies as a risk management strategy using data from 599 households in Kenya who were exposed to fortified beans (Phaseolus vulgaris) and an improved indigenous chicken (Gallus gallus domesticus). This is because despite the rich literature on agricultural technology adoption, literature on technology adoption as a risk mitigation strategy is limited. Seventy-three per cent of farmers were non-adopters, 18% adopted the fortified beans, 3% adopted the improved indigenous chicken and 6% adopted both technologies. Econometric results show that limited access to markets reduced adoption as marketing risks increase. Older farmers were more likely to adopt the fortified beans as they may be wealthier and generally knowledgeable about bean technology reducing their absolute risk averseness. Male-headed households were more likely to adopt the improved chicken. Farm diversity, access to extension and being a group official increased adoption to spread risk. We concluded that farmers' choice of agricultural technologies is indeed a risk management strategy and therefore policies and technology promotion interventions should be risk-responsive.

Keywords:

Choice, multinomial logit, multi-stage, risk, technologies,

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