Adoption of Modern Agricultural Technologies in Urban Agriculture: A Case Study in Abiy-Adi town -Vegetable Growers

Abstract

Modern agricultural technology plays a vital role in enhancing farmers' productivity and promoting sustainable farming practices. This study investigates the determinants influencing the adoption of fertilizer and pesticide in urban agricultural farming. A total of 240 respondents were surveyed using both primary and secondary data sources. The collected data were analyzed through descriptive statistics and Econometric models. Specifically, a Logit model was employed to identify the determinants of adoption, while propensity score matching (PSM) was used to assess the impact of adoption on household income. The results reveal that age, gender, farming experience, attitude, perception of cost toward modern technology, extension support, use of organic manure, and scarcity of irrigation water are significant factors affecting adoption decisions. Among these, age, attitude, and use of organic manure were found to have a negative relationship with adoption. Moreover, the adoption of modern agricultural technologies has a significant positive impact on farmers' income. The findings indicate that the average treatment effect (ATE) of adoption on household income is 262,519 birr, while the average treatment effect on the treated (ATT) is 61,578 birr. The higher ATE compared to the ATT suggests that non-adopters could potentially gain even more income benefits if they adopted modern agricultural technologies. This implies that adopters may not yet be fully optimizing the use of fertilizer and pesticides, possibly due to limited experience, inadequate training, or resource constraints. In contrast, non-adopters have a higher untapped potential for income improvement once barriers to adoption are addressed. To bridge this gap, policy interventions should focus on strengthening agricultural extension and capacity-building programs to ensure effective and efficient use of modern technologies. Tailored training and demonstration programs should be introduced to improve farmers' technical knowledge and management practices. Additionally, enhancing access to affordable inputs through subsidies, credit schemes, or cooperative purchasing, along with improving irrigation infrastructure, can encourage wider adoption and help farmers maximize the income potential indicated by the ATE. These measures would contribute to more equitable and sustainable income growth among urban farmers,