Farmer's Perception, Agricultural Subsidies, and Adoption of Sustainable Agricultural Practices: A Case from Mongolia

The farmers' sustainable production behavior is viewed as the frontline measure that accomplishes sustainable development in agriculture. Finding ways to support farmers' adoption of sustainable agriculture practices (SAP) has become an issue of concern for researchers and policymakers. The paper aimed to investigate the impact of the current subsidy policy and other key variables on the adoption behavior of the Mongolian wheat growers. The generalized structural equation modeling was employed along with the protection motivation theory framework. The results show that the farmers who perceive high severity and vulnerability of soil erosion are more likely to adopt the SAPs. Moreover, the perceived efficacy of the practices and the farmers' perceived self competency contribute to the decision. The information and training are positively associated with adoption. We also reveal differences between the regions on adoption. Soil fertility has a significant negative impact. Finally, government subsidies are found to have no effect as these subsidies are not intended to promote sustainability. The study findings suggest that increasing farmers' awareness of the harmful effects of growth-oriented production practices, giving related information, and providing training and resources for the use of SAPs that are appropriate to the specific region. The results have implications for developing a policy targeted to promote the adoption of SAPs.