Factors Affecting Organic Fertilizer Adoption in Rice Production in Vietnam

Abstract

The adoption of organic fertilizers is one of the measures of sustainable agricultural production in Vietnam. This research evaluates the effectiveness of organic fertilizer application and the factors affecting adoption of organic fertilizers in rice production. The data of 3,972 rice farmers from the 2014 Vietnam Household Living Standards Survey dataset are used in the analysis. The results show that yield, revenue, and cost of rice production for farmers using only inorganic fertilizers are greater than those forf farmers applying organic fertilizers. However, there is a consistent profit between the two groups of farmers. Use of organic fertilizers improves the financial efficiency of rice production for farmers. The amount of inorganic fertilizers required decreases when farmers apply organic fertilizers. Farmers who are Kinh people, have loans for rice production, or have large land areas tend to use less amount of organic fertilizers. Meanwhile, farmers with higher education, who join the Farmer's Association, or have more household members, are more likely to use organic fertilizers for rice production. This study implies that farmers should apply organic fertilizers to increase the financial efficiency and sustainability of rice production. The government needs to design policies to motivate the production and utilization of organic fertilizers.