Linking farmers’ risk attitudes, livelihood diversification and adoption of climate smart agriculture technologies in the Nyando basin, South-Western Kenya

Abstract

Climate smart agriculture (CSA) technologies are innovations meant to reduce the risks in agricultural production among smallholder farmers. Among the factors that influence farmer adoption of agricultural technologies are farmers' risk attitudes and household livelihood diversification. This study, focused on determining how farmers' risk attitudes and household livelihood diversification influenced the adoption of CSA technologies in the Nyando basin. The study utilized primary data from 122 households from two administrative regions of Kisumu and Kericho counties in Kenya. The study employed the multivariate probit (MVP) and ordered probit (OP) models and descriptive statistics in data analysis using Stata 14.0. Results from the study indicated that farmers’ risk attitudes had a significant negative influence in the adoption of terraces, ridges and bunds as well as the intensity of adoption of given CSA technologies. Household livelihood diversification had a significant negative influence in the adoption of stress tolerant livestock but did not have a significant effect on the intensity of adoption of given CSA technologies. The study recommends that relevant stakeholders should introduce an appropriate agricultural index insurance product to Nyando basin farmers to encourage the broader adoption of CSA technologies.

Keywords

• Risk attitudes
• Climate smart agricultural technologies
• Climate change
• Multivariate probit
• Ordered probit
• Nyando basin