The impact of agricultural insurance on farmers' adoption of soil testing and formula fertilization technology

Abstract

Against the backdrop of the green transformation of agriculture and rural development, understanding the factors that influence farmers' adoption of soil testing and formula fertilization (STFF) technology is crucial for promoting sustainable agricultural development and advancing Integrated Soil-Crop System Management (ISSM) approaches. Using survey data from 1,324 rice-farming households in Jiangxi Province, China, this study employs a Probit model and mediation analysis to examine the effect of agricultural insurance on farmers' adoption of STFF technology. The results indicate that agricultural insurance significantly promotes the adoption of STFF technology, and this finding remains robust across a series of robustness and endogeneity tests. Further analysis shows that risk attitude and farm operation scale serve as two important mediating mechanisms through which agricultural insurance influences technology adoption. Heterogeneity analysis further reveals that the positive effect of agricultural insurance is more pronounced among farmers with lower educational attainment and those located in non-plain areas. These findings suggest that agricultural insurance can serve as an institutional mechanism for scaling up ISSM-oriented practices by reducing farmers' perceived risks, facilitating moderate-scale farming, and improving access to knowledge-intensive nutrient management technologies. Policy efforts should therefore strengthen the integration of agricultural insurance, precision nutrient management programs, and agricultural extension services to accelerate the diffusion of ISSM approaches and promote an inclusive green transformation of agriculture.