Factors Determining the Farmers’ Decision for Adoption and Non-Adoption of Oil Palm Cultivation in Northeast Thailand

Abstract

Many tropical regions are promoting the cultivation of oil palm. In this regard, different national and international organizations promote oil palm cultivation in Thailand. However, socio-economic and institutional factors are very important to be considered in the adoption of its cultivation. This study aims first to determine the various socio-economic and institutional factors in adopting oil palm cultivation, and second, to explore the role of these stated factors in the extent of the adoption of oil palm. The data were collected through a semi-structured questionnaire in Seka of Bueng Kan province of Thailand. The double-hurdle model was used for the estimation of the farmers’ decision to adopt the new technology and the extent of adoption. Results show that the adoption and extent of adoption of oil palm cultivation were positively influenced by gender (male), oil palm training, and access to extension services, while the size of landholding per family member and age negatively influenced its adoption/extent. To increase the adoption rate of oil palm cultivation, young, educated farmers should be encouraged by providing training and credit and extension services should be made accessible.