Determinants of Fertilizer Use Sample Clauses

Determinants of Fertilizer Use. The fertilizer demand equation reveals a few variables with a positive effect on demand at a significance level of 90 percent or higher (see Table 3.40). These include: level of education, area of rain-fed land, and membership in a GPS. All those variables have an intuitive explanation for fertilizer demand. Rain-fed land represents a type of asset, implying that those with greater assets would be more inclined to demand fertilizer. The level of education presumably allows the farmer to evaluate and understand better the modality of use of fertilizer and therefore to increase their effectiveness. Membership in a GPS allows networking and exchange of experience with other farmers and possibly better linkages with input suppliers. Table 3.40–Determinants of fertilizer demand Beta Coefficient Standard Error t-Statistic Significance (Constant) -93.12 428.65 -0.22 0.83 Rice Price -0.03 0.12 -0.24 0.81 Fertilizer Price 0.08 0.09 0.86 0.40 Purchase Price -0.09 0.15 -0.56 0.58 Age of Farmer 2.98 2.68 1.11 0.28 Number of Dependents 4.85 15.70 0.31 0.76 Number of Adults -24.38 15.62 -1.56 0.13 Education Level 26.41 13.90 1.90 0.07 Gender of Farmer -99.58 88.62 -1.12 0.27 Member of GPS 103.61 56.64 1.83 0.08 Number of Extension Visits 9.12 12.64 0.72 0.48 Access to Credit -104.74 112.57 -0.93 0.36 Irrigation Expenditure 0.00 0.00 0.68 0.51 Area of Irrigated Rice -19.54 20.03 -0.98 0.34 Area of Rain-Fed Rice 46.19 20.17 2.29 0.03 Number of Livestock 0.22 0.89 0.24 0.81 Dist. to Input Market 3.55 3.55 1.00 0.33 Dist. to Output Market 4.56 5.19 0.88 0.39 R1 148.85 114.63 1.30 0.21 R3 -88.89 189.67 -0.47 0.64 R4 4.72 159.06 0.03 0.98 R5 19.53 160.02 0.12 0.90 Other variables are less significant and we will omit their interpretation. It is important to notice, however, that prices (both input and output) are, an indication perhaps of too much noise in the measurement of these variables. The level of prices as indicated by farmers might include complex interactions with other variables such as credit, farm size, distance to the market, etc. that we have not been able to disentangle given the few degrees of freedom available.
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