THE EFFECT OF TECHNOLOGY TRANSFER PROGRAM PARTICIPATION ON SMALL FARMS IN CHILE

This research examines the effect of a government sponsored technology transfer program for small holder farms in Chile. The effect of family participation in the technology transfer program is evaluated with respect to a number of 'outcomes' including its effect on farm revenues, total family income, and household poverty status. The empirical examination uses maximum likelihood selection and fixed- and random-effects estimation techniques. By estimating the effect of program participation on crop selection, crop yields, farm use of certified seeds, and the scale of farming activities, the research examines the mechanisms through which the program appears to raise farm revenues. Estimation results show program participation had a positive and significant effect on farm revenues and total family income. The program prompted farmers to adopt nitrogen fixing bean crops, but did not have significant effects on crop yields or the likelihood a farm planted certified seeds or applied fertilizer. The primary mechanism through which the program increased farm income was by increasing the intensive scale of farming pursued by participants.