Abstract
Overall:
In developing countries, a set of rice management practices called "System of Rice Intensification (SRI)" is attracting attention as a low-input and potentially high-yield technique. However, its adoption rate is generally very low. Why are seemingly promising agricultural technologies not widespread? To answer this big question, we conduct a large-scale randomized controlled trial in rural Bangladesh. In particular, we examine the impact of the relaxation of labor constraints through mechanizing part of practices, compare the income and profit effects of SRI and SRI with mechanization, and identify the general equilibrium effects on labor and product markets, if any.
Detail:
The "Green Revolution" that began in the mid-1960s enabled high yields through the introduction of modern varieties of rice and wheat, as well as the use of agro-chemicals, including fertilizers and pesticides. In recent years, however, the development and diffusion of environmentally friendly technologies in Asian countries has become an urgent issue because of competition with the industrial sector over water use, the impact on global warming caused by the generation of large amounts of greenhouse gases from rice paddies, and the worsening of soil contamination and health hazards caused by excessive use of agricultural chemicals. Among the Sustainable Development Goals (SDGs), the promotion of sustainable agriculture is promoted across targets 2, 12, 13, and others.
In Asia and other developing countries, a technological package of rice management practice, called "System of Rice Intensification (SRI)" is attracting attention as a low-input, environmentally-friendly, high-yield rice farming method. SRI is characterized by (1) transplanting young seedlings, (2) planting one or two seedlings per hill, (3) sparse planting, (4) intermittent flooding, and (5) the use of organic fertilizers. It is also said to be a pro-poor technology because it does not require additional modern rice seeds or chemical fertilizers, and the number of seedlings can be reduced and input costs can be kept down by (2)-(3). In the early 2000s, there was some controversy over the effectiveness of SRI in increasing yields, but after several verifications, it is now widely accepted that SRI leads to increased yield. Although SRI is seen as a "promising" rice technology that offers low inputs and high yields, adoption rates are still generally very low.
This study tries to address this adoption puzzle, focusing on the case of SRI practice in Bangladesh. One reason for this low adoption is that SRI requires more labor inputs for cultivation and water management than conventional farming methods, which may result in a limited impact on income and profit (Takahashi and Barrett 2014, AJAE). In Bangladesh, the Rural Development Academy (RDA), a government agency, is promoting "mechanized SRI" (MSRI) by developing and using rice transplanters for SRI (machines that can easily and reliably perform the unique 1-2 seedling planting and sparse planting of SRI) in order to reduce labor costs associated with SRI adoption. (MSRI) through the development and use of rice transplanters for SRI (machines that can easily and reliably plant one or two seedlings and sparse cultivation specific to SRI).
In collaborating with RDA, we will mainly answer the following research questions:
1. Why has seemingly promising agricultural technology (SRI) not been widely adopted?
- What are the main constraints to SRI adoption? In particular, does MSRI through mechanization increase the adoption rate?
- Are MSRI and SRI preferable technologies in terms of income and profit compared to conventional farming methods?
2. What impact could the diffusion of MSRI and SRI have on adopting and non-adopting farmers through general equilibrium effects on labor and product markets?
First, in light of the lack of widespread adoption of SRI, a seemingly promising technology, this study will investigate its constraints and profit effects. If the labor costs associated with SRI adoption can be reduced by mechanizing some of the work, MSRI-adopting farmers may be able to earn higher incomes and profits and actively adopt SRI. However, SRI is also a knowledge-intensive technology that requires relatively advanced skills in cultivation and water management. If farmers' lack of knowledge is a constraint to adoption, simply reducing labor costs and increasing expected profits by introducing MSRI will not be enough to promote its diffusion.
Second, this study will determine how the diffusion of SRI and MSRI affects adopting and non-adopting farmers through general equilibrium effects: SRI and MSRI with mechanization may increase profits for adopting farmers, while increased production may decrease income for SRI and MSRI adopting and non-adopting farmers if output prices decline. MSRI could also reduce the income of rice farmers, both adopters and non-adopters of SRI and MSRI. MSRI could also have a negative impact on (mainly landless) farmers engaged in agricultural labor if it reduces the demand for rural labor and lowers wages. These general equilibrium effects are particularly important for predicting social impacts when interventions are scaled up, but are one issue that has not been adequately tested in previous studies.