Evaluating The Economic Impact of Agricultural Technology Adoption on Wheat Yield Improvement

Agricultural development is a vital issue in the developing world, where the need for faster agricultural growth has become increasingly urgent. In Egypt, where the agricultural sector employs about 20.3% of the workforce and contributes approximately 11% of the Gross Domestic Product (FAOSTAT, 2020), improving wheat productivity is essential. However, domestic wheat production has only met 51% of annual demand between 2000 and 2021. Improvements in agricultural production in Egypt require the adoption of dynamic practices that include intensifying agriculture and reducing food waste. Despite progress, information regarding the costs and benefits of new technologies remains insufficient, creating uncertainty among farmers. The study aims to analyze the adoption of agriculturaltechnologies and their effects on smallholder farmers in Egypt. Data for the study was collected in two phases (2020/2021 and 2022/2023) from a sample of 1,266 farming households across ten governorates in Egypt. The results showed that the average age of farmers was 54 years, with males comprising 95% and females 5%. Farmers had an average of 25 years of agricultural experience and obtained agricultural information from various sources, such as extension services, farmer schools, and mobile phones. Although 99% of farmers were part of cooperative societies, 35% of them did notparticipate in these cooperatives. The study utilized the endogenous switching regression (ESR) model to estimate the economic impacts of improved wheat varieties. The findings indicated that adopting these varieties increases production by 359 kg and supports farmers' income by 1,770 Egyptian pounds per feddan compared to non-adoption. Additionally, it was found that adoption increases individual wheat consumption by 23%, equivalent to an increase of approximately 21 kg. The study recommends that the government encourage the adoption of improved varieties and facilitate their accessibility to farmers across all governorates.